Situational Analysis and Communication Case study Assignment Group 1

Finnish multinational corporation. Started as a wood pulp mill. Wired and wireless communication.

A Multinational Computer technology corporation. Best selling products. Major market share in OS

NOKIA

The Nokia Company logo. Founded in Tampere in 1865, incorporated in Nokia in 1871.

The Deal
Microsoft acquires Nokia Phone Business. Microsoft acquires Nokias Qualcomm and other key IP Licenses. Microsoft licenses Nokias patents for use across all Microsoft products

Whats the impact of Microsoft-Nokia acquisition on the Smartphone World?

Strategic Rationale
Accelerate Phone share. Strengthen Overall Opportunity. Smart Acquisition. Strong execution Plan.

Microsoft Nokia Partnership

Situation
Companies continue to buy, especially when they lack commercialisations. Making desperate attempts to quick-fix deep structural problems. Microsoft has lacked a successful product in the fast growing mobile phone market. Technology companies frequently acquire firms for their innovations after having overlooked innovations that emerged deep within their own organizations. Example : HP

 When Nokias mobile business started a steep decline with the takeoff of Apple iPhone and Googles Android. Nokia ran to Microsoft for cover, adopting Microsofts Windows Mobile platform while Microsoft invested in Nokia. Successful digital firms have grown mainly on their internal development of novel technologies. Examples are Apple, Google, Samsung now, and Nokia and Blackberry earlier.

 Commercializing innovations at the risk of cannibalizing successful products pays off handsomely. iPhone could have cannibalized iPod, iPad could have cannibalized the MacBook, Windows did cannibalize DOS. Fears cannibalizing cash cows. Innovate relentlessly within, even at the cost of cannibalizing ones sacred cows.

Analysis
Whats the strategic rational in acquiring Nokia? Whats the impact of Microsoft-Nokia acquisition on the Smartphone World? Did Nokia Deviate from its core competencies in terms of technology? What should Nokia do to acquire market share? Is the strategic decision correct or is it a wrong approach? Is there a transformation required beyond software's and PCs?

Thank you