Corporate strategy: Joint Ventures and Strategic Alliances - Essay Example

Download file to see previous pages... Therefore, continuous investment in R & D is very much essential for the sustainability of business in this industry. Those players who do not update the product for the market needs will be laid back and the market will be taken over by the competitors. Some of the major mobile phone device companies in the world are Nokia, Apple, Samsung, Blackberry, LG, Sony Ericsson, etc. While some players have handled the market single handed, some others have depended on mergers and acquisitions. The mergers and acquisitions were either carried on to be stronger to compete in the market or to suppress a potential competitor by acquiring them. This section will deal with some of the notable mergers and acquisitions happened in the computing and mobile industry during 2004 – 2011. Alcatel – Lucent: Alcatel Lucent is a global telecommunications corporation formed by the merger of Alcatel of France with Lucent of USA in December 2006. The merged entity is now called Alcatel Lucent and is headquartered in Paris, France. “The formation of Alcatel-Lucent in 2006 created the world’s first truly global communications solutions provider, with the most complete end-to-end portfolio of solutions and services in the industry.” (Alcatel Lucent, 2011) This was a merger with a clear strategic focus. Both Alcatel and Lucent technologies were having years of experience in the telecommunications industry. The main strategy behind the merger is to form a globally strong player in communication solutions. Alcatel had significant market presence in more than 130 countries including France and other European Union countries. Similarly, Lucent technologies had good market presence mainly in US and many Asian markets. The merger assured formation of a company with one of the widest market presence in the industry. The merger also gave Alcatel access to Bell Laboratories, the R&D facility of Lucent Technologies. Presently, Bell Labs is a subsidiary of Alcatel Lucent. Alcatel was specialized in providing communication solutions to internet service providers and corporates. They are also specialized in broadband networks (fixed and mobile) and other related applications. At the same time Lucent technologies were specialized in providing software solutions and systems to the communication networks. The merger gave Alcatel Lucent an edge over end to end services in the industry. A clear foresight about the stiff competition in the industry is what that drove both the companies for this merger. Nokia – Trolltech: Nokia’s acquisition of Trolltech is another strategic acquisition that happened in the telecommunications industry. The deal was completed in June 2008 when the European Commission unconditionally approved Nokia’s offer for Trolltech. Trolltech, originally known as Qt development Networks is a Norway based software developer. “Nokia describes its acquisition of Trolltech as a way to move its cross-platform software strategy forward and also alludes to the potential for increasing the value of its S60 and Series 40 mobile platforms.” (Paul, 2008) Nokia is one of the largest mobile handset makers in the world. The Finland based company was the market leader until recently when Samsung smart phones overtook Nokia with their Android based products. Nokia’s smart phones are based on Symbian platforms. Trolltech has in depth ...Download file to see next pagesRead More