Title: Microsoft and Nokia strategic alliance
1.0 Background of Nokia and Microsoft
Microsoft is the biggest multinational corporation in the personal computer industry which owned major of the market share (over 90%) in Window Operating System (Windows Phone, 2015). In the year 2010, the Guinness Word Record for being the fastest-selling consumer electronics device ever released had break by the Microsoft. Microsoft also has the greater financial power that Nokia unable to compete. In the year 2008, Microsoft bought over the Symbian and makes the OS as free to use by everybody. It is because it wants to motivate people to create applications on Symbian to compete from Android and IOS. Microsoft also was once a dominant player in personal digital assistant
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When these two companies are become alliance, it means that they can use other strengths on complement their own weaknesses. After they fill up their weaknesses, Microsoft and Nokia can create a new smartphone with Window Operation System that can create a strong brand identity toward society’s mind.
c. To increase the price for the market share and generate sustainable revenue from both Microsoft and Nokia based on window phone Microsoft and Nokia invented new window OS smart phone and form a new mobile platform in the market. Their market share tends to be increased due to their expertise in differ field. They are a lot of fans from different sector. After they alliance with each other, their market share will be increased too. Since they will a lot of fans from different sector of market, it means that they will have a larger market to promote their new smart phone. Besides that, they will add some new value or features to the new window phone in order to increase the sales price of the product. So that, they can generate more return from revenue and also maintain a position in its customer’s
In the short stories Where Are You Going, Where Have You Been?” by Joyce Carol Oates and A&P by John Updike. There are many similarities and differences are shown. An example of one of these are the settings. Both of these stories took place in the 1930’s but one was 1932 and the other was 1938. Although the girls and Connie are both scared they will be sexually abused, Connie and the girls take different risks and are shown in a different setting.
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.
2000-2006: HTC made first time profits when it engineered and developed PDA for Compaq computer. HTC made an alliance with top hardware companies and became best hardware maker which led to release of the XDA, the first Windows based smartphone by collaborating with Microsoft. HTC operated in ODM business and Mobile operator business. HTC designed customized phones for Mobile operators based on their specifications which led them to gain attractive contracts from different Mobile operators. HTC contracts with mobile operators was reason for HTC’s early success. HTC relationship with Handspring to develop Treo smartphone facilitated the opportunity to learn about software and User-Interface design. By 2006, HTC was shipping more than 70% of the world Windows Mobile smartphones.
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.
There are several factors that are important to examine in the Microsoft-Nokia negotiation. The first factor is that this was a cross-cultural negotiation because Microsoft is an American company, while Nokia is a Finnish company. Both countries have very different values, so it was extremely important for representatives from both companies to understand each other’s cultures before the negotiations began.
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
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.
So, that why I chose Nokia Company to do this research and solve the problems that company has. I have two objectives from this research. First, I want to solve the problem that Nokia Company have it in their technology. They should make a new technology for their produce to avoid any problem. The second objective is advancement again to the marketplace and to compete with other companies to be the first company in produce mobile phone like in past.
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
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
Because of that serious situation, Nokia need innovate own products. Symbian was Nokia's main smartphone operating system. Until 2011, Nokia cooperates with Microsoft to produce a new system, Window Phone, that would replace Symbian. But because of belated resolution, Nokia still cannot get largest market share of world again.
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”.
For Nokia to stay in the business they need to meet these basic requirement of the customer. If Nokia does not meet the customer requirements, then the customers will walk away and will use another brand such as Samsung, Erickson etc. Nokia was successful because they met the needs of the customers. “The Marketing concept holds that the key to achieving the organisational goals lies in determining the needs and wants of target markets and delivering the desired satisfaction more efficiently and effectively than the competition”[3]. For an organisation to provide products that satisfy customers needs through a co-ordinated set of activities that also allows the organisation to achieve its goals, because customer satisfaction is the major aim of marketing concept.[4] Organisations need to communicate effectively with their customers, outlining the benefits of its service and how they can be used to
One company that appears to have a gap between its mission and its capabilities is Microsoft. The software giant has long had a problem with respect to innovation, and continues to rely on aging franchises for the bulk of its revenue. It was left out of the mobile operating systems boom and has failed to be a leader in either software or consumer electronics as a result (Clarke, 2010).
Thanks to the last 5 years hardworking of the whole company, 009 has become one of the leading windows phone companies in Australia and Europe. Despite the company is struggling in surviving under the serve competition in the smart phone market, 009 still have strong product competitiveness and moderate market share in Australia market. It did not rank highly as the firm was facing increasing finance pressure from decreasing profitability (GoVenture 2016). A glance of financial reports of these five years indicates that 009 got highest profitability in year 2 and then jumped stepped into negative in year 3 and 4. In the last year, 009 was still unprofitable but has a relative decrease amount of loss (GoVenture 2016).