Nokia And Microsoft Strategic Alliance

Why some companies perish while others endure? Survival has long been recognized as a basic goal for a developing firm. At least in the long term, survival should be related to various steps of performance, such as market share and success. These want to do with the evolution of technology in an industry. Population density may only be a reflection of underlying driving forces based on technological change that determine the form and level of competition, the elegance of entry, and finally the structure of an industry.

Nokia plans to form a strategic partnership with Microsoft to create a global mobile ecosystem based on highly complementary belongings. The Nokia-Microsoft ecosystem goals to deliver differentiated and ground breaking products and have unrivalled size, product breadth, physical reach, and brand id. With Windows Phone as its key smartphone program, Nokia would help drive the continuing future of the program by leveraging its competence on hardware search engine optimization, software customization, dialect support and level. Nokia and Microsoft would also combine services assets to operate a vehicle innovation. Nokia Maps, for example, would be at the heart of key Microsoft resources like Bing and AdCenter, and Nokia's application and content store would be built-into Microsoft Marketplace. Under the proposed partnership, Microsoft would provide programmer tools, rendering it easier for software builders to leverage Nokia's global size.

Nokia Future Planning

With Nokia's planned move to Glass windows Phone as its major smartphone platform, Symbian becomes a franchise platform, leveraging previous ventures to harvest additional value. This strategy identifies the possibility to retain and transition the installed foundation of 200 million Symbian owners. Nokia needs to sell about 150 million more Symbian devices in the a long time.

Under the new strategy, MeeGo becomes an open-source, mobile operating-system task. MeeGo will place increased focus on longer-term market exploration of next-generation devices, programs and user activities. Nokia still programs to ship a MeeGo-related product later this year. In feature mobile phones, Nokia unveiled a renewed strategy to leverage its development and power in growth marketplaces to connect the next billion people to their first Internet and application experience.

Nokia and Microsoft are to become listed on pushes in a bid to topple Apple and Google in the mobile phone market. The two firms today released a "broad strategic relationship" that will dsicover Nokia phones jogging Microsoft software.

At first look, Nokia and Microsoft may appear unlikely bedfellows, however in the hugely competitive mobile phone market, it could be the only chance the two have to meet up with Apple and Google.

2011 Deal

The deal performs to both firms' advantages - Nokia is great at hardware, but has battled in the smartphone world due to its horrible software which is horribly outdated. Microsoft, meanwhile, also suffered with obsolete software - until just lately. It is Glass windows Telephone 7 software, which Nokia will now use, has been hailed by even the most vociferous critics as a genuine competition to both Apple and Google. If the two could work collectively effectively remains to be seen, especially as Apple, Google and BlackBerry manufacturer RIM are so entrenched on the market - but Nokia must gamble, and this might just be the reinvention that Nokia must save itself.

Mobile Market for Microsoft

If we see the data of the mobile market, we will easily understand the explanation for why Nokia and Microsoft are banding together. These two companies want to perform on the market that has shifted away from the voice communication to data and internet communication, the driving a car factors or both the companies. Microsoft is the market leader in the program industry, in addition Nokia in the mobile communication industry. Although Nokia's Symbian operating system is still the dominant one amongst the whole handsets however the market is moving into the smartphones, because of this Nokia and Microsoft are falling market talk about. So, as they have risks from other mobile makers aligning with software producers providing them with a competition. Therefore keeping in mind the customers' expectations and their preferences, made a decision to use their competitive edge and grasp the market again on the basis of software plus hardware merged minuscule device ecosystem this is the name of the new mobile to be launched.

Android is the true mover in the mobile Operating-system market. And Nokia still must cope with RIM and Apple. So Nokia's getting together with Microsoft is practical as software meets hardware. It gives Microsoft a assured entry into the market via the most significant device supplier and eliminates the need for Nokia to invest billions on software development. Some ask: "why the two don't simply combine?

The biggest risk to Nokia and Microsoft is the move period. Nokia indicated a two season change period to Home windows Mobile phone 7 devices. The smartphone market manages in dog years. Two years is an eternity if consumers don't play ball with Nokia and Microsoft, both companies could become irrelevant.

Microsoft gets access to the biggest area of the mobile market with Nokia. It might be a threat of inability to Nokia that existing users of Nokia find it difficult to use Window mobile software and want Nokia to keep the software as easy and intuitive as Symbian.

Threats for Nokia

The intro of the Iphone changed the emphasis of handsets from device design with securely operated/walled applications to the choice of wide open applications and related services conditions. Apple obviously will stay with their proprietary device OS/open builder environment, consistent with their long history of Laptop or computer world developments. The challenge for all other handset suppliers, including mobile industry leaders Nokia, Motorola, and Samsung, has been the challenge of paring the phone, pad or other mobile device with a competitive software environment that provides the needed benefits of rapid innovation, low obstacles and cost, and a straight participating in field for competition.

The business lead that companies once possessed in not-so-smart Smartphone has proven insufficient to compete with Apple. Samsung and Nokia's efforts to contend with their own wide open development conditions have mainly fizzled. The development of software surroundings has moved beyond efforts that can be undertaken by Nokia-Intel (Meego), Samsung or Motorola; market momentum has been overtaken and the acceleration in improvements has become a ramping juggernaut.

Threats for Microsoft

The software environment is highly leveraged by the multitude of hardware and software coders that contend in the space. While committed to their own attempts to build up programs and devices, they donate to wide open development, market understanding and sales momentum that no company is with the capacity of developing.

This is an identical problem for Microsoft Glass windows Mobile 7: many reviews say the program has several strong points; user research show a 44% favorable degree of satisfaction, response by MS Mobile 7 users. The integration with MS Office and server software that continues to be trusted pleases many in federal government and corporate options. Nonetheless, the expectation of most analysts is ideal for Microsoft to do no better than continue to store a small ratio of the handset OS market share. Meanwhile, their mobile search and portal work fare a whole lot worse than in the wired world.

How to Choice for Handsets

The choice is often not whether handset suppliers use Android, but if indeed they will use it exclusively. Our studies also show devices' wide selection of ability for suppliers to enhance beyond the baseline of the Yahoo OS. Indeed, the 'Apple factor, ' if boiled down, is to provide a high level of finesse that should go beyond what Yahoo offers as the foundational applications. Delivering this requires a deep degree of understanding about how precisely to make the device supplier security features, hosted services, interworking between applications and hardware drivers, component selections and device features, advancement in proportions and adapters, and all other sections of design. This level of focus on finesse can achieve the difference between just having good technical technical specs and the "now that's cool!" wow factor balance between ease of use and functionality. How do suppliers know they have achieved it? Certainly sales and margins determine financial success, but before that the difference between any old application or device and an iphone app or device that will end up selling is the excess effort that results in "we know it whenever we view it" quality.

Major Competitor for Nokia and Microsoft

Apple could do what it did cause all the mobile systems that emerged before it sucked at encouraging third party designers. Thus Apple was able to start a mobile device all by themselves and get some real traction. An effort to implement the same strategy in the current environment would never work. Now the immediate response is "What? No huge catalog of apps? Your platform sucks. " There is a window of energy when that wasn't a full given, and the Yahoo folks were able to release Android to advertise under the club. However now that window is tightly shut. Microsoft attemptedto address the issue by paying to have the popular game titles on other websites ported over to Windows Phone 7. I believe all would agree that the look at was underwhelming then one not likely to be repeated.

Successful Partnership

If nothing fail and the relationship is successful for both the companies, following will be the benefits that they will enjoy in future

Benefits of Successful Partnership

Nokia and Microsoft today released plans to form a broad strategic partnership that could use their complementary talents and expertise to create a new global mobile ecosystem.

Nokia and Microsoft intend to jointly create market-leading mobile products and services made to offer consumers, operators and programmers' unrivalled choice and opportunity. As each company would concentrate on its center competencies, the partnership would create the ability for speedy time to advertise execution. Additionally, Nokia and Microsoft intend to interact to assimilate key possessions and create new service offerings, while extending established products and services to new markets.

Microsoft gets distribution for its Glass windows Mobile 7 OS. It's unclear the actual licensing arrangement is between Nokia and Microsoft, that may collect undisclosed royalties.

The software giant dents what could have been mobile domination by Google.

Microsoft will get more developers up to speed scheduled to Nokia's global distribution.

Note lots of the advantages to Microsoft are intangible. Microsoft becomes a mobile player again, but as we realize from the business's Internet efforts-profits can be elusive.

Nokia and Microsoft's future

Let's assume that over the next three years Nokia's Symbian operating system largely gets substituted by Windows Telephone 7. If that's so, Microsoft garners about thirty percent market talk about. I think that some market talk about leakage. At least, Microsoft wind up with 20 percent market share. Add it up and Microsoft just ensured there's a four-horse mobile Operating-system race short-term: Android, Apple's iOS, RIM and Home windows Phone 7. In the event that you expect RIM winds up with Android somehow, then from the three-horse competition. " this is now a three equine race. "

If Android won over Nokia it would have been game, placed, match for the mobile system race. Google would have won.

Nokia delivered more than 461 mobile items in 2010 2010. No-one even comes near to that lots of devices. Microsoft will trip along with almost all of those devices

In a nutshell, Nokia will:

Focus on Glass windows Telephone and Microsoft's ecosystem-Bings, Xbox Live and Office.

MeeGo will deliver, but largely be a learning experience for Nokia.

Install a fresh control team.

Structure the business to give attention to smart devices and mobile phones-a move which makes a great deal of sense.

Recommendations

A relationship with Microsoft provides Nokia Microsoft's pouches & services like Xbox LIVE, advertisement Center, Zune Software industry (I've hardly heard anything good about Ovi. )

Microsoft needs an exclusive seller like Nokia since current partners have invested in Android as well.

Nokia is now able to worry less about the complete mobile ecosystem, continue doing good hardware and their engineers get deep breathing room to focus on MeeGo and Symbian.

It's an interim technique to continue to be relevant.

Competing with Palm, Android & iOS with Symbian & MeeGo would've buried Nokia.

The collaboration is a win-win for both companies despite what your anti-Microsoft or MeeGo fanboy friend might say. These are business decision; emotional options don't exactly help a company.

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