Microsoft acquisition over Nokia
Sensing the need to create a strong footprint in the mobile communication and data space, Microsoft zeroed in on Nokia as a potential target. Microsoft acquired the Finnish mobile phone manufacturer Nokia in September 2013 for approximately $7 billion.
Before Microsoft acquired Nokia, its presence in the mobile phone industry was limited to software products namely Windows 8. Microsoft’s operating system had already been featured on various mobile phones including Nokia’s Lumia device and had received mixed reviews. This significant strategic acquisition was on the face of it non-core extension for Microsoft, but deeper analysis clearly indicates that Nokia signalled a major strategic shift in the direction and company vision for the future.
Nokia acquisition: A breakthrough deal or a failed acquisition?
While many in the industry doubt the practicality of the Nokia deal, it contained various aspects that provided Microsoft with …show more content…
Moreover priortization between devices and services, especially with the inclusion of Nokia’s portfolio, will affect the company future. It will have to ensure that it does not repeat the same mistakes that Nokia and Microsoft itself did over the past decade. Harmonizing the organizational structure, demonstrating a sustainable strategic intent and reinvigorating employee morale to reach its once famed peak are only some of the initiatives it has to roll out more efficiently. The company now has to ask itself whether it wants to create a vertical ecosystem that fully integrates devices or a horizontal ecosystem that extends across and encourages scale. The existing restructuring does not indicate a strong direction on this strategic choice. It remains to be seen if Microsoft can adopt a middle path and yet challenge the supremacy of Apple and
Sensing the need to create a strong footprint in the mobile communication and data space, Microsoft zeroed in on Nokia as a potential target. Microsoft acquired the Finnish mobile phone manufacturer Nokia in September 2013 for approximately $7 billion.
Before Microsoft acquired Nokia, its presence in the mobile phone industry was limited to software products namely Windows 8. Microsoft’s operating system had already been featured on various mobile phones including Nokia’s Lumia device and had received mixed reviews. This significant strategic acquisition was on the face of it non-core extension for Microsoft, but deeper analysis clearly indicates that Nokia signalled a major strategic shift in the direction and company vision for the future.
Nokia acquisition: A breakthrough deal or a failed acquisition?
While many in the industry doubt the practicality of the Nokia deal, it contained various aspects that provided Microsoft with …show more content…
Moreover priortization between devices and services, especially with the inclusion of Nokia’s portfolio, will affect the company future. It will have to ensure that it does not repeat the same mistakes that Nokia and Microsoft itself did over the past decade. Harmonizing the organizational structure, demonstrating a sustainable strategic intent and reinvigorating employee morale to reach its once famed peak are only some of the initiatives it has to roll out more efficiently. The company now has to ask itself whether it wants to create a vertical ecosystem that fully integrates devices or a horizontal ecosystem that extends across and encourages scale. The existing restructuring does not indicate a strong direction on this strategic choice. It remains to be seen if Microsoft can adopt a middle path and yet challenge the supremacy of Apple and