Microsoft Corporation: A Case Study Of Nokia's Success

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Microsoft Corporation is an American company headquartered in Redmond, Washington that has developed software and hardware products used in a variety of computer equipment, production, sales, and management. The most renowned product is the Microsoft operating system called Microsoft Windows. This became to take over the world’s personal computer with over 90% market share and Microsoft has expanded the business from local to global as part of the strategies.
In 1975, Bill Gates and Paul Allen founded the company to develop a BASIC interpreter for sale and their success is based on the ability to create new products and services and embrace the technology trends for users.
Nokia Corporation is a Finnish company founded in 1865 that was started in the paper-manufacturing company. The company was seeking the transformation of the company through the merger with Finnish cable company and rubber firm. In 1992, Nokia produced the first commercially available mobile phone called Nokia 1011 and turn out to be the best-selling mobile phone
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Evidently, the sale in Nokia fell 24% and Nokia was burning hundreds of millions in cash. Also, a reform in Microsoft in mobile sector was needed since this area of remarkable potential had been one of weaknesses for Microsoft. For instance, Apple and Google controlled 86% of the smartphone market while only 3.7% share was occupied by Microsoft’s Windows Phone operating system. Given that the companies between Microsoft and Nokia reached a strategic partnership in 2011, what they considered was both could gain the advantages through the merger. Therefore, in September 2013, Microsoft made the contract to buy Nokia’s mobile phone business for $7.17 billion. As a result of the deal, about 43,000 Nokia employees transferred to

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