Microsoft Aft Case Study: The Apquisition Of Nokia By Microsoft
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.
This acquisition and consolidated case study discusses the acquisition of Nokia by Microsoft. Throughout …show more content…
This acquisition and consolidated process considers that Microsoft will acquire Nokia. In fact, Microsoft has a bigger dimension than Nokia, as well as, equity availability. Moreover, Nokia ownership structure is more concentrated than Microsoft ones, with 721 owners, 17.4% registered in Finland, thus it is easier to get control in an acquisition of Microsoft. Microsoft ownership structure contemplates 6493 owners. In turn, the new leadership team headed by Stephen Elop (ex President of Microsoft Business Division) may already have a certain availability to listen the Microsoft proposal, since it has already worked in Microsoft. The third reason that justifies this acquisition proposal by Microsoft is the fact that the computer software leading company has a weak presence in the smartphone and handset market, so it may take advantage of a more consistent and mature position in such segments as Nokia. Additionally, the growth potential for Microsoft is high which allows building a more competitive and stronger company, represented in the all segments. Nevertheless, one shall bear in mind that both companies were and still are market leaders in their respective segments, thus a new and unprecedented ecosystem may burst threatening the Apple’s and Google’s current …show more content…
Decades ago, before the invention of Telephone and Internet, people used to communicate through letters and Telegrams and it took days to deliver the critical information to the recipient. Initially we had only landline phones and that too quite bulky, then we got wireless phones and in 1990s mobile phone were brought by NOKIA and it brought people closer.
NOKIA launched its first GSM mobile phone 1011 in year 1992 and since its launch it never looked back and captured the emerging market for mobile phones. By 2006 , it increased its revenue five times and by 1998 it was the world's biggest mobile manufacturing company. But due to lack of innovation and due to poor management it started losing its market from 2007. This was the same year when Steve Job launched iPhone and changed the market scenario completely.
It was the time of emergence of Smartphones and people quickly switched to it as they need internet and other innovative applications which make their life easier and better. They want to be connected even if they are sleeping. Smartphones fulfill their needs. Microsoft which is mainly known for its windows operating system and its software products had started selling windows operating system for mobile phones as well through NOKIA. They called these phones as NOKIA Lumia series. But Microsoft announced its acquisition of NOKIA in September
This acquisition and consolidated case study discusses the acquisition of Nokia by Microsoft. Throughout …show more content…
This acquisition and consolidated process considers that Microsoft will acquire Nokia. In fact, Microsoft has a bigger dimension than Nokia, as well as, equity availability. Moreover, Nokia ownership structure is more concentrated than Microsoft ones, with 721 owners, 17.4% registered in Finland, thus it is easier to get control in an acquisition of Microsoft. Microsoft ownership structure contemplates 6493 owners. In turn, the new leadership team headed by Stephen Elop (ex President of Microsoft Business Division) may already have a certain availability to listen the Microsoft proposal, since it has already worked in Microsoft. The third reason that justifies this acquisition proposal by Microsoft is the fact that the computer software leading company has a weak presence in the smartphone and handset market, so it may take advantage of a more consistent and mature position in such segments as Nokia. Additionally, the growth potential for Microsoft is high which allows building a more competitive and stronger company, represented in the all segments. Nevertheless, one shall bear in mind that both companies were and still are market leaders in their respective segments, thus a new and unprecedented ecosystem may burst threatening the Apple’s and Google’s current …show more content…
Decades ago, before the invention of Telephone and Internet, people used to communicate through letters and Telegrams and it took days to deliver the critical information to the recipient. Initially we had only landline phones and that too quite bulky, then we got wireless phones and in 1990s mobile phone were brought by NOKIA and it brought people closer.
NOKIA launched its first GSM mobile phone 1011 in year 1992 and since its launch it never looked back and captured the emerging market for mobile phones. By 2006 , it increased its revenue five times and by 1998 it was the world's biggest mobile manufacturing company. But due to lack of innovation and due to poor management it started losing its market from 2007. This was the same year when Steve Job launched iPhone and changed the market scenario completely.
It was the time of emergence of Smartphones and people quickly switched to it as they need internet and other innovative applications which make their life easier and better. They want to be connected even if they are sleeping. Smartphones fulfill their needs. Microsoft which is mainly known for its windows operating system and its software products had started selling windows operating system for mobile phones as well through NOKIA. They called these phones as NOKIA Lumia series. But Microsoft announced its acquisition of NOKIA in September