Microsoft

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Tech giant Microsoft recently merged with Nokia in an effort to leverage its
position in the smartphone market–though perhaps the term “merger” may be a
bit misleading.
Last Friday, April 25, Microsoft’s essential acquisition of Nokia’s handset
business was finalized after a seven-month-long process. The former smart
phone company will now be incorporated as a subsidiary of Microsoft and
renamed Microsoft Mobile, according to the Daily Gadgetry. In light of this deal,
current smartphone leaders Apple and Samsung may have a new competitor to
look out for in the future.
Microsoft first announced the merger in September of last year, and after
jumping through some legal hurdles in Nokia’s Asian markets, the deal was
finalized last Friday, according to The Register. PC Magazine reports that
Microsoft purchased Nokia’s smartphone business for 3.79 billion euros ($5
billion) as well as the companies existing patents for an additional 1.65 billion
euros ($2.18 billion) for a grand total of about $7.2 billion.
Then-CEO of Microsoft Steve Ballmer called the merger a “bold step into the
future” as well as a “win-win for employees, shareholders, and consumers of
both companies.” He continued on to say that the deal will “accelerate
Microsoft’s share and profits in phones, and strengthen the overall opportunities
for both Microsoft and our partners across our entire family of devices and
services.”
Current Executive Vice President of Devices and Services at Nokia and former
CEO of Nokia Stephen Elop explained it as “bring[ing] together the best of
Microsoft’s software engineering with the best of Nokia’s hardware engineering,”
according to PC Magazine.
This move does not come as much of a surprise, given that the two companies
have already established a business relationship with one other. Since 2011,
Microsoft and Nokia have worker closely together to produce the Nokia Lumia

line of smartphones, which runs off the Windows mobile operating system.
Unsurprisingly, the majority of all smartphones running the Windows operating
system were produced by Nokia.
Still, despite this marriage of Nokia hardware and Microsoft software, the Lumia
series continued to lag considerably behind the more popular Apple and
Samsung mobile products. Besides the potential for mobile success, the merger
was also partly motivated by the troubled financial state of Nokia’s mobile
market. Microsoft not only provided an out to save Nokia but had also proven to
be a trusted and reliable business partner. No other company would be more
qualified to carry on the work of Nokia.
Given this already close relationship, will consumers see a significant difference
in the smartphone market at all? At this point, it is too early to make any
conclusive predictions about the effects of the merger and whether or not there
will be any effects on Microsoft’s other non-mobile markets. Undoubtedly
though, Microsoft hopes to reinvigorate its mobile brand against Apple and
Samsung. Like Apple, Microsoft is consolidating its mobile hardware and
software under one company in the hopes to create “faster innovation,
increased synergies, and unified branding and marketing,” Ballmer stated. The
promise is there, but time will only tell if Microsoft’s business transaction will
influence their role on the mobile market.
As for Nokia, though the mobile phone entity may be now dissolved, the
company will continue on with its many other projects. This includes its
innovative mapping system Nokia HERE and its telecommunication service
Nokia Solutions and Networks, according to The Register.

1. 1. NOKIA-MICROSOFT ALLIANCE BY GURUDUTT K

2. 2. QUESTION 1Analyze whether Nokia’s alliance with Microsoft willenable it to recapture
market share that it had lost ? Partially because people think that Android is better than
anyother mobile software for the applications it has There are people who like Microsoft OS
so they can capture themarket slowly Because of Microsoft OS in nokia their will be more
applications availableto customers Customers may prefer because of change in Operating
system in themobiles
3. 3. QUESTION 2Analyze the new strategies planned and implementedby Stephen Elop in
reviving the fortunes of Nokia.  Replacing Nokias Symbian OS with Microsoft’s new
Windows Phone OS as the primary OS for Nokias high-end smartphones  Changing the
way it was working before  Because of MS OS the applications Available are more
4. 4. QUESTION 3According to you what should Nokia and Microsoft doto make the alliance a
success? The Hardware in the Smartphones must be better compare to older
nokiaphones The Software must be more user friendly Making availability of huge number
of applications Should promote the product more
5. 5. QUESTION 4 Do you think Nokia has taken the right decision to choose Windows Phone
instead of Android? Yes nokia has right choice because all leading mobile companies are
using android as their OS By using MS OS it will make cell phone software new for the
customers People always prefer change As the users increase the demand for the
product will also increase

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