Nokia Microsoft Alliance : The Global Smartphone Industry Essay

834 WordsFeb 29, 20164 Pages
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
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