The Supply Side Of Nokia

Due to continuous innovation in technologies, cost of production has been reduced drastically and has caused the emergence of new devices in the global handset market and competition among companies have been increased heavily for survival. It has forced companies to change their business strategies. Few big companies acquired small companies to increase their market share, few followed a brand extension strategy by launching new products and hence increased their market penetration. For this reason, an integration between Microsoft and Nokia, two market leaders in their own rights, may create new opportunities to challenge the market.

Microsoft is a multinational corporation of the United States; It specializes in developing, manufacturing, trading software licenses and supporting a wide range of computer related products and services.. In terms of revenue, Microsoft is the world's largest software maker. It is also called "one of the most valuable companies in the world".

The cell phone industry is a competitive market and will increase continuously. The profitability of individual companies is driven mainly by their ability to develop new products, providing better service and making their products affordable for consumers. Profitability of companies is achieved also by taking advantage of product marketing, access to capital, and by inquiring the expertise to improve the cell phones.

The smartphone industry is a very up and coming place. In the US, more than 77% of adults own a smartphone (Smith). There are many different kinds of smartphones. They can vary in shape, size, color, and brand. Two of the largest brands of smartphone are Samsung and Apple. They make two of the hottest phones on the market right now. Just recently Samsung made the Galaxy S8, and Apple came out with the iPhone 8. Both phones are reported to be top of the line. Both being high-end devices have many similarities, but they also have differences that set them far apart from each other.

The smartphone industry consists of all companies that manufacture and sell smartphones to consumers. This industry is massive, fast-paced environment where the products are constantly changing. It is characterized by quickly evolving technology and designs, short product life cycles, rapid imitation of product and technological developments. Through analysis is also possible to identify some major opportunities and threats in the smartphone industry.

The multinational corporations has their own situation when they become rise and fall. This explanation will inform us how can the multinational corporations face their situation and conditions. In the perspective of technical force, the multinational corporations will face the environmental and economy changing while those elements will influence the rise and fall of the corporations. For example is Nokia, its officially comes from Finland is a telecommunication multinational company that has their employer in 120 countries and do selling their product in 150 countries. Nokia would like to focus on large scale telecommunication, technology development, and they provide online mapping services. Nokia has been a significant contributor for mobile industry especially in the development of GSM standards, and then they are becoming the huge vendor of mobile phones in the world. Here is the more analyzing information of Nokia to face their situation starts from

As I said above, other small and large firms also exist in a mobile phone and technology products competition market. For example: HTC, HP, Sony,

The conventional product strategies which used to focus upon costs, differentiation, and customer and technology orientations doesn’t seem to fulfill the ever-growing need of better technology. The Smartphone market is more focused on innovation and product development rather than the conventional product strategies.

| High- There are relatively large number of competing firms such as Samsung, LG, Motorola, etc., but the latest market data from analyst firm Canalys estimates that Apple took 28% share of US smart phone market in 4th quarter of 2007.

Looking to the market we have companies like: Samsung, Apple, Nokia, HTC, Blackberry, Motorola (bought by Lenovo), LG, Huawei , etc. The market share is split as the following:

After a little over a decade since its establishment, Samsung, who was once a small business focusing on exporting perishables is now one of the biggest manufacturing company in the world that revenue of over $167 Billion. From an economic perspective, as technology changes – becoming more efficient, it gives other companies the ability to compete in manufacturing the products. As the electronics industry continues to grow, more companies are competing with Apple. As of today, Samsung is one of the largest competitors to Apple. Both companies are trying to win the technology market, especially smartphones since they launched their own line of smartphones – Samsung Galaxy in June 2009 and the iPhone in June 2007.

Apple uses product differentiation and premium pricing strategies. According to Apple, the company sells quality phones to provide a great experience. The company’s pillars include focussing on the high end, prioritizing

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.

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

* The Political Environment has the potential to impact the mobile phone industry predominantly – especially MNC’s like Nokia which operates globally are subject to home and host nation political and legal systems which differs substantially across regions. (Ireland, 2008)