Microsoft to buy Nokia's mobile phone unit. Background-Microsoft Microsoft Corporation is an American-based multinational computer technology corporation.

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Presentation transcript:

Microsoft to buy Nokia's mobile phone unit

Background-Microsoft Microsoft Corporation is an American-based multinational computer technology corporation that develops, manufactures, licenses, and supports a wide range of software products for computing devices. Originally founded to develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Windows line of operating systems. Its products have all achieved near-ubiquity in the desktop computer market.

Background-Nokia Nokia company established in 1865, after experiencing a development for a half-a-century, it become the equipments supplier of the biggest communication in the world. Nokia is leading in the world that moves correspondence. With borrow experienced, innovation, customer friendly and dependable solution, Nokia has become the leading supplier of mobile phone, and one of the leading suppliers of IP network. Pass ambulation and Internet of organic combine, Nokia not only creates more business opportunities for business enterprise, but also makes people's daily life more abundant colorful.

The present situation of the smart phone industry Combine smart era with internet era hardware software Internet service operating system platform UE (User Experienc e) computer- maker software system developers application software developer Symbian IOS Android Wp7 Integrated terminal

News Microsoft will acquire Nokia's devices and services unit by $7.2 billion and license the company's mapping services. As part of the deal, Stephen Elop will step down as Nokia chief executive to become the executive vice president of the devices and services division. Meanwhile, the leaders of these two companies hope that through this acquisition combine the window phone system of Microsoft with the brand influence of Nokia gives Microsoft a new shot at becoming the clear number three player in the mobile device operating systems war. The deal, which is expected to close in the first quarter of 2014, is still subject to shareholder and regulatory approval. When the deal closes, approximately 32,000 Nokia employees will transfer to Microsoft, including 4,700 in Finland and 18,300 involved in manufacturing.

N+M made an alliance —Industry Magnates appreciate each other Microsoft's software research and development capabilities Microsoft's software research and development capabilities Nokia's channel Microsoft’s developer base complementary advantages Nokia's hardware development ability

Question  N+M How to become successful?  "A leader in the market often can only meet the needs of existing customers, while ignoring the generation of new markets ". What have Nokia missed?

The smart phone wars —Nokia : out-dated Leader Strategic: choose wrong operating system The loss of sensitive to new technology The lack of response to user’s needs change "A leader in the market often can only meet the needs of existing customers, while ignoring the generation of new markets ". What have Nokia missed? The lack of energy in the new market forms Missed the best opportunity to buy and sell. The most important of all, "the company still make money" It made Nokia in blind

Launch new products with the fastest speed Outstanding new product differentiation Promote the application development Break the routine Adjust product distribution pattern N+M How to become successful