Nokia Siemens Networks CEO, Paraphrased: ‘It’s Just a Flesh Wound!’

Reuters:

Ailing telecom equipment maker Nokia Siemens Networks has changed its business focus to increasing its market share, the new chief executive of the venture was quoted as saying on Sunday.

“In early 2008 we made a strategic decision to focus more on cash flow and profitability than on the market share. Now it’s time to give it up and to focus solely on the market share,” Rajeev Suri told Finnish daily Helsingin Sanomat.

It’s one thing when a nascent company runs in the red for a short time while building market share. Amazon is a good example. But it’s another thing when an established market leader claims they’re not trying to be profitable. Is anyone buying this? What I hear is: We’re lost and don’t know what to do.

Update: I am aware that Nokia Siemens Networks is a joint venture half-owned by Nokia. I’m saying this attitude — that the pursuit of profits and market share are in opposition — is unhealthy.

★ Sunday, 29 November 2009