However, the situation took a turn since 2000. Microsoft started to go down and Apple began to revitalize. With the introduction of iPhone and iPad, Apple revolutionized the smartphone market and created tablet computer industry, and the PC market is declining. The competitive advantage of Microsoft turned into a competitive disadvantage. In 2012, Apple became the most
If the business of Nokia mobile phone was not sold to Microsoft it would have brought their other businesses down together with it. Nokia making that decision is as good as at least saving their other businesses that are doing well in making money. For example, Nokia is doing quite well in the mapping business which is called HERE that was not acquired by Microsoft. Nokia partnered with Siemens which is networking and telecommunication equipment with the name of NSN. These two businesses, networking and the mapping business are more profitable than the mobile phone business in which stopping the mobile phone business is good for the company saving the
The biggest competitor of Nokia being Htc followed by Huawei and Samsung. The main aim of the agreement with Micorsoft was to regain its lost hold from the market and regain the strength of its brand built over the years. Although being a stronger company as compared to what it was in 2011 Nokia is yet again standing on a burning platform. Despite owning almost all Window Phone sales and making some great phone hardware, Nokia is not even in the list of top 5 smart phone sales companies. Nokia is the only company majorly invested in the windows phone and Microsoft’s OS.
This had a massive effect on the Nokia and affected the company’s portfolio and sadly from here on in Nokia just had a string of problems. In 2008 Android was launched as a competitor the Nokia’s Symbian platform. All of Nokia’s competitors such as Samsung, LG and HTC all bought into android and that was the start of a land slide for Nokia’s sales. Through the next few years with the rise of iPhone nokia continued to decline and more and more jobs were been lost. Many saw the company hiring a non-finish CEO for the first time as a weakness as he couldn’t understand nokia as the brand that produced high quality phones.
Microsoft is an American technology company which develops, manufactures, licenses, supports and sells computer software, system, consumer electronics, and services. In recent decade, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions to grow the company such as Mojang, aQuantive, Nokia, LinkedIn and lot of others. Some of them added valuable new business software to Microsoft's portfolio. Some of them also cause huge loss of Microsoft or some problems but not failure. Microsoft/Skype is one of that which also has some mistakes in acquisition.
Microsoft was founded by Paul Allen and Bill Gates on April 4, 1975, to develop and sell BASIC interpreters for Altair 8800. Its aim was to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Microsoft Windows. The company's 1986 initial public offering, and subsequent rise in its share price, created three billionaires and an estimated 12,000 millionaires among Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date and in June 2016 announced plans to acquire LinkedIn for $26.2 billion.
Today’s communication is all about cell phone technology. Every day new cell phone models are coming and carriers are luring the customers with attractive low pricing on these cell phone models with monthly plan to go along with it. This was not the case a year back in a very saturated wireless industry in US. Major players like AT&T and Verizon were ruling the market and companies like T-Mobile and Sprint were struggling to keep the customers. T-Mobile USA, Inc. made some bold moves to break away from saturated market and offered customers contract free plans along with payment plan on new handsets.
The policy created an enormous potential market for Nokia, who has been heavily involved in R&D activities in attempt to integrate GSM technology into handsets. Without doubt, the tapped into the lucrative opportunity and marched into the European GSM market with a market share of %. (Book: Insider) Nokia also tried to spread its wings to penetrate into the U.S. mobile phone market. The American phones, by that time, were dominated an entirely different wireless network called Code Division Multiple Access (CDMA). Nokia faced fierce competitions from Motorola, the leading player in America.
There is no doubt that both Microsoft and Nokia are large multinational corporation and are both leaders in the technological industry. Whereas concerning the alliance would take place in the industry of mobile phone, thus it is assumed that Microsoft is the laggard and Nokia is the leader. However, Microsoft’s competence in other field such as software (in this case applications and mobile system platform) and financial power are beyond Nokia. In conclusion, in the aspect of leader/laggard relationships, the level of opportunism for both companies would be relatively