I - OVERVIEW THE SITUATION
1.Introduction
Microsoft is a multinational corporation of the United States; It specializes in developing, manufacturing, trading software licenses and supporting a wide range of computer related products and services.. In terms of revenue, Microsoft is the world's largest software maker. It is also called "one of the most valuable companies in the world".
Nokia Corporation is a Finnish multinational corporation. Nokia focuses on fixed and wireless telecommunications products, with employees in 120 countries, selling products in more than 150 countries around the globe.
In 2013 Microsoft has announced a € 5.44 billion acquisition of Nokia’s hardware and services, including mobile phones, equivalent $ 7.2 billion. The deal was completed in the first half of 2014 and was supported by Nokia shareholders. Nokia's human resources operations in 50 countries around the world were available to Microsoft. There were also some factories with design, development, production, marketing and sales of smart devices, universal phones and services
2.Background
Both sides had strong incentives to join forces. Nokia had lost significant ground in recent years to smartphone manufacturers, most notably Samsung and Apple, by failing to keep up with innovations such as touch screens.
Having shed its underperforming handset business, Nokia planned to focus on telecommunications equipment, mapping business, and patent portfolio. Ballmer first approached Nokia CEO Stephen
It established in 1871 and it is very old company. It was one of the biggest company in world in that time and it competition with other companies who is produce cell phone. The main product is cell phone. Nokia Company produce a lot types of mobile phone and different from other. There are phones with big screen and other with small screen. Also, they have phone with keyboard and other without it work by the touch. Also, Nokia Company provide other services which are internet services such as applications, music, digital media and messages. Nokia offers digital mapping and navigation
Another reason that I feel this negotiation could be successfully completed was due to the fact that Microsoft and Nokia’s priorities aligned well at the time. Both companies saw the other’s products and capabilities as being complementary to what they already offered, which gave executives from both companies further incentive to
Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from
Nokia’s intangible resources are those items we cannot see on a balance sheet; things you cannot see, touch or feel. These resources include the company’s human resources, innovation resources, and their reputation. A company’s human resources are made up of the employees who work in an organization, their skills, knowledge, and abilities. Nokia employs over 50,000 people between the three businesses which the company owns: Nokia Networks, HERE, and Nokia Technologies. In addition, the company is a major investor through three additional businesses. Nokia has a Group Leadership Team in place whose responsibility is to manage the operations of the entire company. The team is made up of five executives including the President & CEO, the Chief Financial Operating Officer, the President of HERE, the President of Nokia Technologies, and the Executive Vice
Nokia, a company which was founded in 1865, set up wood pulp mills to rubber, cable, forestry, electronics and power generation. Upon entering the telecommunications equipment market in the 1960s, it concentrated in the producing radio transmission equipment. It started making phones in the 1980s and in 1991 the first GSM call was made with a Nokia phone and it supplied these GSM networks to other countries in Europe. But In the early 1990s investments in all industries except telecommunication operations were being divested, which led to Nokia being the world leader in the mobile phones industry for nearly a decade, one of its most popular phone being, the Nokia 3310, termed as “indestructible” by comedy website 9gag.com. Nokia
Even if users could ignore the OS, the the hardware features which Nokia was rolling out were quiet late as compared its major competitors Samsung and Apple. Nokia seemed to be lagging in the race. Where Samsung from nowhere entered the race and focused on innovation as its core competence to gain the market share, Nokia was very late to realize this fact. Samsung did everything right to focus only on product innovation and started competing with Apple in all product lines from smartphones to tablets, but Nokia failed to develop a focused device
It also not estimated how important the transition to smartphones would be. This is also one of part why company not going through success path. Nokia was earning around 50% of profits in the mobile-phone industry in 2007, and major part of profits were not coming from smartphones. Diverting a lot of resources into a non-profitable products is also risky.
Nokia was the world’s largest mobile phone maker for 14 years. The company was once acclaimed for its marketing strategy success for changing mobile phones from just a communication device to everyday fashion accessories. However, in today’s global smartphone market, Nokia has only 3% of the market share and is declining. The company’s decreasing sales was an obvious sign of vulnerability leading to the selloff of its mobile device business to Microsoft in 2013 (Surowiecki, 2013).
From Nokia’s vision and mission statement it can be inferred that Nokia wants to be known for its credibility and to be a market leader again as it was before the year 2007 (Kess, 2014). Nokia understands that the company has to use innovation to offer products that are not yet
I´m sure that no country likes to see Nokia (or any other multinational) closes its plant affecting 2.300 workers and their families, and …of course, because all this the overall economic development of the region get affected.
Ecobus Marketing Coursework - Nokia - The Wireless Giant Ecobus Marketing Coursework "Nokia - The Wireless Giant" Introduction & Purpose For this coursework, I have decided to study the wireless giant, Nokia. Nokia is, unarguably, the leader in the world of mobile communications. The brand boasts a significant number of users from around the world, ranging from Europe to the Americas, and from Africa to the Asia Pacific. Nokia's success has been aided by its experience, innovation and its user-friendliness and thus, has become the leading supplier of mobile phones and other related products around the globe.
On February 11, 2011, Stephen Elop, a recently appointed CEO of Nokia’s Finland headquarters, announced that the company would be introducing a new mobile strategy that would adopt Microsoft’s new Windows phone. The new smartphone was reportedly to be unproven and the market was not interested in the new development. Upon hearing of the adopted mobile strategy, the market to react poorly to Mr. Elop’s new decision as company stock took a 14-cent dive. In reaction to the company stock plunging and a struggling market for Nokia, Stephen Elop partnered with Microsoft in order to save the company. This partnership allowed them to manufacture a new global ecosystem mobile phone called the Vertu Luxury cell phone. Frank Nuovo created the Vertu Luxury mobile phone in the 1990’s (Kwong-Kay Wong, 2011, p. 1).
Nokia’s history stretches back 150 years to a time in a small town in Finland, Fredrik Idestam, when a 27 year old mining engineer, discovered a new way of producing paper from wood rather than from rags as it was commonly produced, and set up his first factory of paper mill in 1865. Within three years, the company set up a second mill. By 1902, it had expanded its operations to the generation of electricity from the hydropower assets Nokia possessed.
Microsoft is the most established software giant and Nokia is the company that is the icon for electronic and communication equipments. Microsoft had a partnership with the computer manufacturer IBM that made the software of Microsoft from DOS to modern Windows 8 famous and most used. The same underlying principle of symbiosis has been used inn this alliance. There are many reasons why Microsoft had to enter the cell phone industry. Arch Rival Apple came out with the iPhone and revolutionized the mobile world. Though the gadget was not a direct competitor, Microsoft was out of a huge potential market, namely the mobile segment.
Nokia has always been famous for its mobile phone devices however instead of research and development it has to focus on the profitability and competitiveness of its smartphone business at that stage. Meanwhile it still conducted acquisitions of “imaging assets” and owned patents crucial for next mobile transition. But Nokia must recognize the indirect costs of layoffs that it would lose experienced researchers and engineers and this may prevent it from catching up on innovations. Direct cutting may also bring negative public associations - lowering the brand image and investors may become unfavorable toward