Nokia-Microsoft Alliance: Joining Forces in the Smartphone Wars

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Case Details:

Case Code : BSTR399
Case Length : 14 Pages
Period : 2010-2011
Pub Date : 2012
Teaching Note :Not Available
Organization : Nokia Corporation; Microsoft Corporation
Industry : Smartphone; Information Technology
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Smartphone Market
The first decade of the 21st century saw a sudden increase in the market for converged-function smartphones. Convergence of technology refers to the coming together of various technologies to work in a synchronized way and deliver better performance as well as offer several new functions which were till then not available in mobile phones. The turn of the century saw the mobile phone turning into an ultimate device of aspiration for consumers around the world...

Nokia
The origins of Nokia can be traced back to 1865, when an engineer called Knut Fredrik Idestam (Idestam) established a wood-pulp mill in southern Finland to manufacture paper. Idestam later named his business as Nokia Ab in 1871. The company also started an electricity business in 1902...

Microsoft
Microsoft was founded by Bill Gates (Gates) and his friend Paul Allen in 1975. Microsoft was started to develop a programming language called Altair BASIC, an improved version of BASIC. In 1978, Microsoft introduced its own version of COBOL for personal computers (PCs)...

Problems at Nokia

Nokia, considered to be the pioneer in smartphones and a global leader in the mobile phones market, started to face severe challenges to its dominance in the smartphone market in 2007. The problems came mainly in the form of competition from the new mobile operating systems that entered the market like iOS and Android. Nokia had started the smartphone business and had been the leader since the release of its smartphone OS Symbian in 1997. But the release of Apple's revolutionary mobile OS, iOS for mobile phones in 2007 led to a decline in the sales of Nokia...

Shake up at Nokia

Nokia had another mobile OS called Maemo for its high-end smartphones. But in February 2010, it announced that Maemo would be merged with another mobile OS called Moblin to create a new mobile OS called MeeGo. Moblin was another mobile OS developed by Intel Corporation (Intel) to be used in smartphones. The MeeGo OS was still under development with the first phone running on it due to be released into the market only by the end of 2011. Nokia was running out of time as the rival mobile OSs like iOS and Android were growing stronger...

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