Nokia and Microsoft Partnership Analysis

The fourth considers the shift made, From ARPANET to Internet approaching defense and research. The fifth section covers The Internet in the Arena of International Standards. The final section, Popularizing the Internet, shows the beginning of the wide spread of the Internet but before Internet connectivity becomes popular at the personal level. All things considered, the book states the expansions in Internet history between 1959 and 1991, with some proceedings to 1994.

Software: Microsoft dominated only 12% of the market with its Windows Mobile OS and BlackBerry OS held a meager 11%. It stepped up to refurbish its marketing attempts and provide end-to-end solution for its Windows Mobile enables phones with new user friendly features.

Due to the financial downturn and the emergence of new devices in the global handset

Founded in 1975 by Paul Allen and Bill Gates, Microsoft is a dominant force in the personal computer operating market, such as it’s latest flagship product, Windows 10. To expand business, Microsoft created ventures in multiple alternate markets, including that of the personal mobile device market, through purchasing assets of the former mobile phone company “Nokia”. In November 2015, Microsoft released the “Lumia 950”, a 5.2 inch-screen smartphone operating a mobile form of Microsoft’s operating system “Windows”.

Although the rest of the competitors are quite strong and Microsoft Nokia enter in the market with strong position of compatible to desktop PCs operating system, still company has sustained its policy of low prices in smartphones. Microsoft and Nokia launched its first smartphone range that holds integration of Microsoft was with Lumia range that suits to those customers who easily operates Microsoft and for that reason, they don’t feel any difference in operating this smartphone. Hence, there is a competitive advantage for the company specifically for those customers who don’t want to use complex operating system and are fond of Microsoft that is why Microsoft comes together with the Nokia to make such smartphone that holds operating system of Microsoft that would play role and effect of desktop PCs along with the

Reason for Nokia failure is on one side that Apple redefined smart phones with touch screen and Blackberry with email, and on the other side, Android proved that software matters more than hardware. Nokia was slow to respond to these trends. In 2008, brands like Samsung, HTC, and Sony found roots to extend their market. Samsung's Android phones are user friendly and budget friendly too. When every

Nokia was once a global leader in the mobile phone market, reaching an enormous customer base and successfully bestowed barriers for any new players. Unfortunately, Nokia’s market share showed a huge decline in the past couple of years. Hoping to reclaim its leadership position Nokia entered into a partnership with Microsoft, creating a series of smartphones called the Nokia Lumia. However, the company was unable to meet their objective and is still threatened by the rapid loss of market share. Nokia’s threats are not just coming from rivals in the industry but from the company itself. Nokia is having difficulties positioning products, thus the customers are unable to recognize which products suits them better.

Nokia Corporation is one of the world’s largest vendor of mobile phones from 1998 to 2012. At Nokia, they are committed to connecting people around the world through technology. From 2014, Nokia reorganized its structure into four category of business groups: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. Nokia operates 15 manufacturing facilities in nine countries and maintains research and development facilities in 12 countries (Reference For Business, n.d.).

In the early 2000s Nokia planned to step into the emerging market due to the market saturation in developed countries. Nokia estimated that they can get at least 600 potential consumer in the country like Russia, China, and India. Nokia enjoyed the growth in sales and profits. The company was expanding rapidly from European market to North American and developing market.

As mentioned above, major mobile phone manufacturers have come together, developing the Symbian OS as a barrier to entry to Microsoft. In that sense, with the major companies holding bulk of the market share, they stand to gain many

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).

When comparing Nokia and Microsoft the first topic, which could be the most important, is the establishment of the two organizations. They have both grown and expanded to get them where they are today through innovation and the continuing effort to grow with a changing world. According to Microsoft (2015) two young computer enthusiasts came together in 1975 to start an organization called Microsoft. Bill Gates a Harvard graduate and Paul Allen a Washington State University graduate look to the founders look too Steve Ballmar another Harvard graduate to assist with the vision to change the way work was done. Use of typewriters and carbon paper would be replaced with a computer and Microsoft Disk Operating System.

Early 2014, Microsoft came to a deal acquiring Nokia’s handset business for US$7.2 billion, aiming to extend its markets for mobile devices while rivaling Google’s Android operating system (OS), Apple and Samsung in the global smartphone business (deal, 2013). It seemed a valuable deal merging both software and hardware, beneficial to both Microsoft who determined to control the telecommunication value chain and Nokia, who required an ally of strong financial capability. Six month later, Microsoft decided to move away from the Nokia brand - switching the name of smartphones from “Nokia Lumia” to “Microsoft Lumia” while still using ‘Nokia’ for low-end basic phone (T, 2014). This report will investigate the decision of

Nokia is a finnish multinational communication and information technology company, founded in 1865. Nokia is headquartered in Espoo, Usimaa in the greater Helsinki metropolitan area. In 2014, Nokia employed 61,656 people across 120 countries, did business in more than 150 countriesand reported annual revenues of around €12.73billion. The company has had various industries in its 151-year history. Originally founded as a pulp mill ,and current focuses on large-scale telecommunication infra structures,and technology development and licensing.Nokia is also a major contrtibuter to the mobile telephony industry,having assisted in the development of the GSM and LTE standards ,and was,for a period ,the largest vendor of mobile phones in the world.Nokia’s dominance also extended into the smart phone industry through its Symbian platform ,but eventually shadowed by competitors.Nokia eventually entered into a pact with Microsoft in 2011 to exclusively use its windows phone platform on future smartphones.Its mobile phone business was eventually bought by Microsoft in an overall deal totaling $7.17billion .Stephen Elop,Nokia’s former CEO,and several other executives joined the new Microsoft Mobiles subsidiary of Microsoft as part of the deal,which was complete on 25 april 2014 .

The direct competitors for Nokia includes all smartphone manufacturers, including but not limited to Samsung, Apple, ZTE, LG, RIM, HTC, Google (Motorola), Huawei, and Sony Ericsson. With Microsoft as a partner, Nokia also faces competition not only in term of physical devices, but also in term of OS platform and the ecosystem.