strategic management
Topics: Mobile phone, Smartphone / Pages: 3 (568 words) / Published: Jan 7th, 2014

Nokia and Microsoft Partnership Process and Motives

Strategic Alliance
Nokia and Microsoft established a partnership in February 2011 with a strategic alliance agreement for a new third ecosystem in smartphone market. This ecosystem involves planing to work together to integrate key assets and create new service offerings, while extending established products and services to new markets.They agreed to create a mobile phone / application atmosphere to compete with rivals Google/Android ecosystem and the Apple/iPhone ecosystem.Both companies would remain mutual independent and work as partners with focusing on their core competencies.Microsoft brought its’ Windows Phone software and also Bing, Office and Xbox Live and Nokia will be OEM with its nice position in hardware production and global supply , distribution network.Actually , It was combination of hardware and software experts in their industries. Nokia was not just partnering with Microsoft but also collobrating on the future of the software platform too. This could lead to even tighter integration between the Windows Phone OS and (Nokia) hardware and maybe can be analyzed for first signals for future acquisition of Nokia by Microsoft.The current CEO of Nokia , Stephen Elop was from Microsoft and he knows Microsoft in terms of company culture and this is an advantage for integration of parties and their employees.After strategic alliance , Nokia adopted Microsoft softwares for its mobile phones and Microsoft gained momentum in its mobile device strategy.
Acquisition of Nokia
On September 2013 , new deal was established and Microsoft purchased all of Nokia’s Devices & Services business and use Nokia’s mapping services. Microsoft implied one brand and United Voice strategy and aimed that bring to Nokia’s staff to Microsoft family and create more win-win synergy for both companies. After the acquisition , approximately 32,000 people are expected to transfer to Microsoft, including 4,700 people

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