Microsoft and Nokia Partnership
The paper’s theme is an analysis to determine whether the Microsoft and Nokia partnership was a success or a failure, although the termination of the partnership occurred when Microsoft acquired Nokia. Currently, Microsoft is rightsizing the Nokia staff. The analysis will explore the forces leading to the partnership, each partner’s partnership objective, reasoning for the partnership, approach creating the partnership, effective and ineffective decisions resulting from the partnership, and the issues each company’s CIO needed to address to support the venture.
On February 11, 2011, according to a press release from Microsoft, "Nokia and Microsoft intend to jointly create market-leading mobile products and …show more content…
Nokia is bleeding market share to Apple and Google 's Android partners. From Nokia’s viewpoint, Microsoft with its deep pockets is the perfect partner because the firm is not achieving market penetration from hardware vendors (Hickie, 2013). The two reasons for the partnership opportunity is 1) Nokia requires financial and marketing resources to invest, while the company re-invents itself, 2) Microsoft requires a committed hardware vendor with a recognizable brand name to provide a platform for the Windows Media operating system (Hickie, 2013).
Resulting from the two objectives, Microsoft gains 1) Nokia adopting Windows Phone as its principal smartphone strategy; 2) Nokia would help drive the future of Windows Phone; 3) Nokia would contribute its expertise on hardware design, imaging, mapping, and language support; 4) Nokia would help bring Windows Phone to a larger range of price points, market segments, and geographies; and 5) Nokia’s extensive operator billing agreements would make it easier for consumers to purchase Nokia’s Windows Phone services in countries where credit-card use is low (Microsoft, …show more content…
The CIO also must keep track on how the interaction of the technologies, methods, and increasing production can help or distract the technology aspects of the business lines. Finally, the CIO should ensure the transfer of optimum intellectual property and secure the assets of the venture.
Summary
Microsoft and Nokia established a strategic venture to develop smartphones. Both parties possessed the technology and intellectual property to provide the venture. The key question is whether the venture achieves its goals and is the results of the venture are a success? The answer to this issue is difficult to determine because of Microsoft 's 2014 purchase of Nokia. Although in the meantime, with the Microsoft CEO replacement, the strategy of the company may be changing. According to Souppouris, (2015), the company announced in 2015, Microsoft will reduce 7,800 positions over the next several months.
Much of the reduction will come from Microsoft 's phone business, which joined the company 's newly formed ‘Windows and Devices Group’ in June. As part of the merger announcement, Microsoft also revealed it would say goodbye to the last two major Nokia executives still at the company (Souppouris, 2015, p.
The paper’s theme is an analysis to determine whether the Microsoft and Nokia partnership was a success or a failure, although the termination of the partnership occurred when Microsoft acquired Nokia. Currently, Microsoft is rightsizing the Nokia staff. The analysis will explore the forces leading to the partnership, each partner’s partnership objective, reasoning for the partnership, approach creating the partnership, effective and ineffective decisions resulting from the partnership, and the issues each company’s CIO needed to address to support the venture.
On February 11, 2011, according to a press release from Microsoft, "Nokia and Microsoft intend to jointly create market-leading mobile products and …show more content…
Nokia is bleeding market share to Apple and Google 's Android partners. From Nokia’s viewpoint, Microsoft with its deep pockets is the perfect partner because the firm is not achieving market penetration from hardware vendors (Hickie, 2013). The two reasons for the partnership opportunity is 1) Nokia requires financial and marketing resources to invest, while the company re-invents itself, 2) Microsoft requires a committed hardware vendor with a recognizable brand name to provide a platform for the Windows Media operating system (Hickie, 2013).
Resulting from the two objectives, Microsoft gains 1) Nokia adopting Windows Phone as its principal smartphone strategy; 2) Nokia would help drive the future of Windows Phone; 3) Nokia would contribute its expertise on hardware design, imaging, mapping, and language support; 4) Nokia would help bring Windows Phone to a larger range of price points, market segments, and geographies; and 5) Nokia’s extensive operator billing agreements would make it easier for consumers to purchase Nokia’s Windows Phone services in countries where credit-card use is low (Microsoft, …show more content…
The CIO also must keep track on how the interaction of the technologies, methods, and increasing production can help or distract the technology aspects of the business lines. Finally, the CIO should ensure the transfer of optimum intellectual property and secure the assets of the venture.
Summary
Microsoft and Nokia established a strategic venture to develop smartphones. Both parties possessed the technology and intellectual property to provide the venture. The key question is whether the venture achieves its goals and is the results of the venture are a success? The answer to this issue is difficult to determine because of Microsoft 's 2014 purchase of Nokia. Although in the meantime, with the Microsoft CEO replacement, the strategy of the company may be changing. According to Souppouris, (2015), the company announced in 2015, Microsoft will reduce 7,800 positions over the next several months.
Much of the reduction will come from Microsoft 's phone business, which joined the company 's newly formed ‘Windows and Devices Group’ in June. As part of the merger announcement, Microsoft also revealed it would say goodbye to the last two major Nokia executives still at the company (Souppouris, 2015, p.