The Nokia-Microsoft Alliance in the Global Smartphone Industry
The case study of alliance between Nokia-Microsoft in the global smartphone industry, puts both companies in a better position to compete with Apple and Google that current are leading the smartphone industry. The alliance between Nokia and Microsoft increases the capability significantly of both organizations. The alliance creates many benefits for both organizations, but also has some cons that the firm must face if they are to be successful.
Lessons Gleaned From Nokia-Microsoft Alliance The alliance between Nokia and Microsoft provides many benefits to both organizations. Nokia’s Chief Executive Officer (CEO) Stephen Elop initiates the alliance with Microsoft in order to grow after Nokia was losing market share to Google and Apple. The alliance was also appealed to Microsoft, since they were looking into the future of the smartphone industry and there particular industry. The current standing was that Nokia was still the market leader, even though they were losing ground to the competition due to the aging technology. At the time of the alliance was announced it is clear that both firms needed each other. Microsoft brought capital to inject into the alliance and technological advancements, while Nokia brought market share and brand reputations. Google and Apple market capitalization individually are larger than Nokia and Microsoft independently, but together the alliance increasing significantly their
Nokia’s Lumia series was launched with a bang, but didn’t click. Reasons can be its design, which wasn’t as attractive as Samsung phones or the iPhone. Today the sale of phones is dependent on how shiny or trendy it looks. Leave aside the looks, Nokia phones didn’t have the front camera, which makes it not even 3G enabled. And we are on the threshold of entering the 4G era. So, Nokia’s latest phones were feature ready, but not future ready. Nokia was solely dependent on Symbian till it entered into a partnership with Microsoft recently. But its shift to Windows was considered a tad too late as by then Apple and Samsung had established their dominance. The operating system space was nearly occupied by Android and iOS leaving not much role for Windows. But that cannot be translated into a failed partnership. “Nokia and Microsoft are no weaklings, they do have assets. We believe that there is a good chemistry there with that partnership, and ultimately long-term Windows Phone will be successful,” Wayne Lam, IHS senior analyst, was quoted by Wired. Nokia puts customers into the corridor of uncertainty. One thing that absolutely annoys customers to the extent that it makes them tear their hair out is to have such phones
To effectively regain entry into the markets and remain competitive, the memo emphasizes on the evolution of Nokia and ensure that innovations are delivered to the market in a timely manner. Collaboration among the staff is
Nokia Company is a telecommunications company and Information Technology. They produce mobile phone. Nokia is very old company or we can say it a one of the best company in past. In this integrated research project, I will provide a lot of details of chosen industry, organization, a SWOT analysis highlighting issues or challenges that lead to proposed research objective. Also, I will identify three relevant CLOs from semesters 7 and 8. Then I will identify of the chosen issue or challenge with a clear objective or problem statement. Moreover, I will write details of research activities including the proposed methodology. (wikipedia, 2016)
“The Rise and Fall of Nokia” case study gives a brief idea about how Nokia Company stated their journey. From the case I come to know how they operates their business, when they entered into telecommunication sector. They are now in decline stage. Once they were the market leader. They served so many people. Create their own brand value to its customers. The case gives me idea about different CEO’s Nokia, how they served their company, what are initiatives they have taken to bring the company ahead. For gain competitive advantages and create value for customers they started partnerships with different companies, joint ventures with different company to get best research and development sectors. They entered into smartphone market later they
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
Apple is one corporation that everyone is frighten of, they are a huge threat in the mobile market. Apple is one of the fastest growing corporations with a 3-year average for Revenue Growth is at 52%, while their Profit Growth is at 70% (Hein, B.). With all of their acknowledgement from the world, they are quite different then Nokia. One of the differences between these two corporations is their product range. Nokia has a huge range of products; this is because they date back to 1865, so they continually adding more and more to their collection (Nokia). Since Nokia has a large range of products it give consumers more of a choice in their discussion making process. Whereas Apple only has been around since 1977, so they only have
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
Microsoft has many challenges in the mobile world, and one of them is cracking the Japanese market. Previously, the company had a few offerings and partnerships, specifically with Toshiba for Windows Phone 7 (the Toshiba-Fujitsu IS12T from 2012). Since then, the OS has floundered there even worse than in the US.
- Plans for a broad strategic partnership with Microsoft to build a new global mobile ecosystem; Windows Phone would serve as Nokia’s primary smartphone platform. - A renewed approach to capture volume and value growth to connect ”the next billion” to the Internet in developing growth markets - Focused investments in next-generation disruptive technologies - A new leadership team and organizational structure
But, which are the main reasons Microsoft lost that relevance in the smartphone sector? And why are they still not able to develop a competitive smartphone? This paper presents a relation of causes and effects that lead
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
This clearly shows the increasing trend of Apple’s growth from 2007 to 2008 i.e. 327.5. This chart also shows the amount of sales in year 2007 to 2008, Nokia dropped its sales from 15,964 to 15,472 and on the other hand the major competitor of Nokia which is Apple increased its sales from 1,104 to 4,720.
The Nokia-Microsoft Alliance appears to be a well-calculated alliance of two major merchandising organizations that are both at the top of their respective business industries. A few of the major points with this merger are the organizations are established, they are both pushing and looking toward the future and subject matter experts are at the heart of each organization. There are always lessons learned when organizations are coming together in a merger weather good or bad it is very important to capitalize on both situations. In the end, the lessons learned will dictate what could have been done better for future business endeavors.
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.
The article I have chosen reports that with the launch of a new range of smartphones, Nokia is also effectively changing its approach to marketing. The company is moving away from more traditional marketing like advertising in print media and shifting towards advertisements through social media and digital campaigns. This allows Nokia to place a greater emphasis on collaborating with its customers through its marketing communication channels. In doing so, Nokia hopes to be able to rival dominant market competitors by increasing its market share and tap onto the rapidly growing smartphone industry.