Business Strategy: The Strategy Of Microsoft And Microsoft

Strategy of Microsoft and Nokia

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.

The leadership team of Microsoft has highlighted three aspects for enhancement in 2014. Firstly, Microsoft has designed a new organizational structure in June 2013. The changes are small but were considered very effective. The leadership team changed the way of how each team was organized. For example, the engineering team that specializes in engineering solution and software construction (Jones, 2014), and also the sales team is responsible to promote the products. All the teams are working together as a coherent fashion in order to help

(2012). International Business - An Asian Perspective. 9th ed. Singapore: McGraw Hill.

The chart explains the lifetime of a product or business from its early idea through its various sales stages as well as its inevitable death (David, 2005). Nokia was clearly on the decline curve of the cycle. 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 remaining 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

Nokia has a long history of success in the mobile phone industry. Nokia also has extensive research and development segment and many manufacturing facilities that run around the world. On the other hand, Microsoft is a technology giant entered the market early, and the company still enjoys a large portion of the market of their operating systems and software applications.

Microsoft acquired the mobile phone division and the extensive supply chain and logistics network from Nokia through the acquisition. The purpose is to gain more advantage in the mobile phone industry as a successful technology company.

The acquisition of Nokia has brought the magnificent manufacturing capability in the smart phone business for Microsoft. Microsoft could leverage on the productivity and logistics of Nokia to differentiate itself in the smart phone business. The acquisition would help both companies to resist competitions, since the competition is getting more and fiercer as innovation happens every day in the technology industry. However, Microsoft needs to come up with new ideas to preserve the dominant status in the many sectors. In the meanwhile, Nokia needs to focus on the rest of its business that had not been sold to