Nokia - Microsoft Alliance

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The Nokia-Microsoft Alliance In The Global Smartphone Industry On February 2011 Nokia, Inc., and Microsoft Corp. have announced plans for a “broad strategic partnership” under which Nokia will use Microsoft’s Windows Phone platform as a new operation system in it’s 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.” Stephen Elop, Nokia CEO and a former Microsoft executive, said the company was at a “critical juncture” and needed to make significant changes, having seen its market share and sales drop and its Symbian operating systems lag behind Apple’s iPhone and the Android operating system launched by Google and used by a range of handset makers. 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 with revenues of $55 billion and a market share capitalization of $19 billion. Microsoft, on the other hand, was the largest software maker and generated revenues of $69 billion. 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 in the mobile phone market, it has been around since the beginning of mobile phones. And according to Interbrand, Microsoft’s br... ... middle of paper ... ...O'Reilly, L. (2011). Is Nokia right to pin its survival on the Microsoft deal?. Marketing Week (01419285), 34(7), 8. • Vakulenko, Michael . "Microsoft-Nokia: A Tale of Two Broken Business Models." VisionMobile. 15 Feb. 2012. Web. 8 Mar. 2014. . • "Nokia and Microsoft Announce Plans for a Broad Strategic Partnership to Build a New Global Mobile Ecosystem." Microsoft News Center. Web. 9 Mar. 2014. . • Nokia Corporation SWOT Analysis. (2012). Nokia Corporation SWOT Analysis, 1-10. • "SWOT analysis of Microsoft." Strategic Management Insight. N.p., 25 Feb. 2013. Web. 9 Mar. 2014. .

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