: The Nokia-Microsoft Alliance in the Global Smartphone Industry (circa 2011) - Case Study Example

Case Study: Nokia-Microsoft Alliance Case Study: Nokia-Microsoft Alliance SWOT analysis of the Nokia-Microsoft alliance: Strength: The alliance brings Nokia into perspective. Being the market leader in mobile technology, Nokia knows how to lead from the front. Since the alliance is made out to work primarily in the mobile market, Nokia’s experience will be crucial. Microsoft helps with the operational aspect. The operating system which was dysfunctional in Nokia handsets will be revived by Microsoft like in Lumia which can be a major crowd puller.

Weaknesses: Both the partners come from very diverse backgrounds. Although they have a lot to offer, their interests in the outcome and products can cause management clashes. The gap and overlapping of knowledge can create turmoil for the alliance. Nokia wishing to revive its prominence, while Microsoft wishing to make a mark on the mobile industry can cause conflicting interests to develop in the manufacture and delivering of products.Opportunities: The alliance gives both companies a chance to branch out and grow and explore new areas of expertise and share knowledge.

While Microsoft enhances its mobile technology knowledge, Nokia gets a chance to view the expertise of Microsoft’s operating systems. Both companies grow out their portfolio.Threats: The mobile technology worldwide is changing drastically and quickly. Consumer demand is also varying with the changing technology. The alliance faces a challenge of the market which is continuously evolving. Consumer apprehension can affect the product and hence the alliance adversely. Consumers apprehending the operating system’s effectiveness in a mobile with the trial and error period will affect the alliance if the alliance cannot deliver a product that surpasses all expectations. 2. Nokia maintains a competitive advantage in the Asian and Latin American markets where its operations are established and clientele is steady.

Nokia has introduced lines which have been adaptable to the market and also has had a first-mover advantage to these markets. Microsoft on the other hand has been the global leader of Windows OS which it wanted to release in mobile technology. Microsoft’s software advantage in Asian and American markets gives it an edge when it introduces the same in mobile form.3. Nokia’s product line has withered with little or no variation in its mobile sets. The company stands strong making a turnover or $55 billion.

On the other hand Microsoft has a turnover of $69 billion and has been able to invest in the alliance a sizable investment. The product line of Windows has increased as ever with Microsoft offering newer operating systems for home and office use.4. The alliance between two companies that have a global imprint in different areas of expertise has led to an increased output expectation and more consumer market. Nokia and Microsoft both have sizable and credible following of loyal customers who can be users of both technologies.

The idea of using a Nokia-Microsoft handset will appeal to all those global masses who have used both technologies and prefer the loyalty to the newer android.