Microsoft Vs Nokia Case Study

Strategy of Microsoft and Nokia

Both Microsoft and Nokia have mentioned the acquisition in the 2013 annual report. Both companies have outlined a clear strategy that will connect the two businesses together.

For Microsoft, the leadership team has highlighted three aspects for enhancement in 2014. First of all, Microsoft has designed a new organizational structure that was introduced in June 2013. The changes are small but were considered very effective. The leadership team changed the way of how each team was organized. As a result, the organization consists of teams that are formed according to different functions. For example, there is an engineering team that specializes in engineering solution and software construction (Jones, 2014), and also a sales team is responsible to promote the products to the market using various sales strategies. All the teams are working together as a coherent fashion

The evidence is that Nokia was struggling and losing market share in the smart phone business before the acquisition.

While the product life cycle for Microsoft is a little bit different, Microsoft has completed its stage of maturity since it completed the IPO in 1983. Yet Microsoft is still reaming strong on many products and services. In the meanwhile, Microsoft also experienced failures in some products and services such like Windows Vista. However, there is no sharp decline for the company. Therefore, Microsoft should be placed on the slight decline curve of the product life cycle, and it has been making efforts in growing stronger as a company that provides both great software and hardware to the global market.

On the other hand, the smart phone industry is still in the growth curve. The market will have many opportunities for companies when an industry at this curve. However, it also means the cost of introducing the new product will be very