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STRATEGIC ALLIANCE

STRATEGIC ALLIANCE. An agreement between two or more individuals or entities stating that the involved parties will act in a certain way in order to achieve a common goal . Strategic alliances usually make sense when the parties involved have complementary strengths. HISTORY.

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STRATEGIC ALLIANCE

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  1. STRATEGIC ALLIANCE An agreement between two or more individuals or entities stating that the involved parties will act in a certain way in order to achieve a common goal. Strategic alliances usually make sense when the parties involved have complementary strengths.

  2. HISTORY • Nokia Corporationis a Finnishmultinational communications and information technology corporation headquartered in Finland. Its principal products are mobile telephones and portable IT devices. • Nokia has around 122,000 employees across 120 countries, sales in more than 150 countries and annual revenues of around €38 billion • Microsoft Corporationis an American multinational corporation headquartered in Redmond, Washington, United States that develops, manufactures, licenses and supports a wide range of products and services related to computing •  Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most valuable companies. .

  3. REASONS • Windows Phone is the most innovative smart phone platform on the market today,  • Today's best smart phone supported by online stores that offer apps, digital media content, other services. Eg-iPhone, Android • The joint product roadmap will create things like location services, search, entertainment, social, advertising, eCommerce, and a variety of others." NOKIA ADVANTAGES •  It simply stopped innovating is now watching its once-dominant market position crumble readily. • While Nokia is the world's largest mobile handset manufacturer, its market share has • been slipping. • APPLE has outpacing NOKIA not only in terms of better products,but also in software ecosystem

  4. SAMSUNG a threat having advantage of vertical integration is also eating NOKIA share. • The mobile handset market getting driven by owners of software ecosystems, companies like Apple, Google and Microsoft. • iPhone and iPad users increasingly choosing Mac ,Mac success means less Windows licensing revenues. • Moreover, tablets are displacing netbooks and laptops, which were the hope of the PC industry until recently • Microsoft losing money in Internet and mobile. The company’s Online Services Division lost $458 Million adding to mounting multi-billion loses in the last six years • The company reported weaker than-expected PC demand in the last quarter of 2011. Revenue of Windows & Windows Live Division fell 6 percent year over year during the and yet worse – operating income declined by 11 percent. MICROSOFT ADVANTAGES .

  5. STRATEGIC ALLIANCE • Microsoft and Nokia issued a statement saying they had signed a definitive agreement outlining the details of the alliance that's expected to result in volume shipments of Nokia Windows Phone 7 devices in 2012. • Microsoft will pay Nokia more than $1 billion to develop and promote Windows Phone 7-based handsets -- a part of the five-year deal • Nokia will pay Microsoft "a running royalty" for the Windows Phone platform, • The deal is seen as a critical element of Microsoft's effort to climb back into the competitive mobile device market where it lags far behind rivals Apple and Google. • Microsoft has been struggling to gain traction in the smartphone market against Apple iPhone and devices from multiple manufacturers that use Google Android mobile.

  6. Nokia could bring its "tremendous" brand, great mobile [hardware] products, global reach, its applications store Ovi, and maps and location assets to the party. • Microsoft, meanwhile, has a "great software platform" in Windows Phone, and the brands that mobile consumers want, "like Bing, Xbox LIVE, and Office." This will have "unrivaled global scale."

  7. EXPECTED RESULTS POSITIVES • The Microsoft-Nokia alliance could extend unimaginable opportunity for Nokia. • The two players will bring their best strategies to the table and look for a way forward in bringing their days back. • NOKIA is not being popular in US, but now with MICROSOFT can target the market. • IDC has forecast a 60% market share for Android within three years. This could even increase and pose a threat to window’s phone. • Experts review Microsoft Windows as not a product not even up to modern standards • Lack of features like No memory card slot,No User replaceable battery etc. which bring them a boot back. • Smartphones have become so complex, even expert users couldn't work all parts of their phones.  NEGATIVES

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