Nokia-Microsoft Alliance: Joining Forces in the Smartphone Wars

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They wondered if Windows Phone had been chosen as Elop was more comfortable with the culture of the company in which he had already worked. Elop responded to the criticism saying that Android would not have permitted Nokia to differentiate itself in the market as many other handset manufacturers used it. Nokia was also criticized for taking a risk in selecting an OS which had not proved itself in the market and which came from a company with a poor track record in the mobile phone business. Many industry experts believed that Microsoft was the biggest beneficiary from the alliance. Microsoft had got the biggest mobile phone manufacturer in the world to use its OS as its primary OS without even formally acquiring it. Industry observers said it remained to be seen whether the alliance would pay off and whether Nokia would be able to regain the foothold it had lost in the smartphone business. According to Ben Wood, analyst at CCS Insight , "This is a clear admission that Nokia's own-platform strategy has faltered. Microsoft is the big winner in this deal, but there are no silver bullets for either company given the strength of iPhone and Google's Android." The challenge before the senior management team at Nokia and Microsoft was how to make the alliance work.

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