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
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.
Nokia Corporation is the world's largest manufacturer of mobile phones, serving customers in 130 countries. Nokia is divided into four business groups: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones group markets wireless voice and data products in consumer and corporate markets. The Multimedia segment sells mobile gaming devices, home satellite systems, and cable television set-top boxes. The Enterprise Solutions group develops wireless systems for use in the corporate sector. Wireless switching and transmission equipment is sold through the company's Networks division. Nokia operates 15 manufacturing facilities in nine countries and maintains research and development facilities in 12 countries.. Originally
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)
An example of how the iceberg has come into play with the Microsoft - Nokia negotiation is that a key challenge of the deal was that Nokia was a huge source of Finnish pride and selling the brand’s best known division would hugely diminish that pride (Moen, 2011). This presented a challenge for Microsoft to overcome because Microsoft is an American company and America is a country that places less value on patriotism than Finland (Thompson, 2014). If Microsoft had undervalued Nokia’s Finnish routes and the importance of Finland to Nokia, then the Nokia board may not have agreed to sell the company to Microsoft. This is one of the reasons why Microsoft agreed to make Finland a research hub for the company and keep a significant portion of Microsoft’s mobile development work in that country. Having a company like Microsoft invest in Finland provided to be a large boon for the country and was one of the considerations of the deal. This deep sense of Finnish pride was also one of the reasons that Microsoft committed to keep using Nokia name even after the merger (Telegraph Reporters, 2016).
Keen on addressing these issues, the company’s management had to react fast, and this is how the birth of windows 8 surfaced. One main impact this change had management, is coping with competition from the established mobile app developers: android from Google and apple. Commanding a considerable market share was a daunting task for management. Statistics from the industry show that, android, the leading mobile app provider, releases between 10,000 and 140,000 new apps every month. Windows 8 released only 200, 000 apps in the first year of its operation which is far below the trendsetters, android. Windows 8 was also built to support only Microsoft specific apps, which made rolling out the change a more complex undertaking to management. To deal with these change demands, the company’s management, embarked in restructuring the organisation in order to incorporate they change demands (Rash, 2013). This began with reorganising the employees into new structures, which meant new duties and responsibilities.
Due to the financial downturn and the emergence of new devices in the global handset
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
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 is due to several reasons and the most reason is the Nokia don’t used the good strategies to developed the products. Nokia Company was acclaimed for its marketing and was seen as the company that had best figured out how to turn mobile phones into fashion accessories. It’s more accurate to say that Nokia was at its heart a hardware company rather than a software company. Nokia failed to recognize the increasing importance of software strategy also there was another mistake which is Nokia have overestimated the strength of its brand and believed that even if it was late to the smartphone game it would be able to catch up quickly. Long after the iPhones release, in fact, Nokia continued to insist that its superior hardware designs would win over users. Even today, there are people who claim that if Nokia had stuck with its own operating systems, instead of embracing the windows Phone in 2011, it could have succeeded. But even though the windows Phone has been a flop, the truth is that by 2010 Nokia had already introduction too many disappointing phones because Nokia Company don’t used successful strategy to developing the product. (James Surowiecki, September 3, 2013). “As a market firm for over a decade, Nokia Company didn’t really excellent plan for the future as it seemed a bit complacent with
We have a long proven record of building apps for windows mobile platforms. Even while the Windows 7 Operating System was not released, our developers had built failsafe mobile apps on this interface, which helped us earn a unique distinctiveness in the related industry.
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.
EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product
Prior to the turn of the 21st Century Nokia been the leader of world telecommunications. Nokia the town had diversified into the business in the 1990’s after producing everything from toilet roll, rubber boots, and televisions within its eleven divisions. (Sainsbury 2013:55). However in recent years, Nokia’s telecommunications sales has decreased with net sales falling by 17% from 2013/14 (Nokia Annual financial reports page 93). Previously they have been delving into a more software driven acquiring Gate 5 and Navteq both software companies. Nokia also adopted Microsoft’s Windows Phone Operating System for Smart devices as an alternative to IOS and Android in the hope of bolstering their competiveness within the market in 2011, as well as the purchase
As the world moves into the industry 4.0 era and a fully digital economy the demands on