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The Nokia-Microsoft Alliance In The Global Smartphone Industry

Satisfactory Essays

On February 2011 Nokia and Microsoft, have announced plans for a strategic alliance under which Nokia will use Microsoft’s Windows Phone platform as a new operation system for its new smartphones. “Today, developers, operators and consumers want compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great experience,” Stephen Elop, Nokia President and CEO, said at a joint news conference in London. “Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It’s now a three-horse race”. Nokia and Microsoft are both struggling to survive in the mobile industry. They weren’t able to maintain their market share because of the changing consumer trends and quickly developing technologies. This alliance is an opportunity for the two companies to join their powers into creating new smartphones that can help them compete in the smartphone industry, and gain back their lost market shares. A SWOT analysis of this alliance shows the following. Starting with the Strengths, both companies are the largest in their industries; Nokia has been the largest manufacturer of mobile phones in the world and Microsoft, on the other hand, has been the largest software maker. By linking their powers in this alliance their products are expected to gain a large market share. Both companies are trusted brands, Nokia is one of the most respected and well-known companies

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