Abstract

Microsoft is one of the largest software companies in the world, with a history of more than 25 years. The case traces Microsoft’s entry and growth in the mobile OS market. It then discusses the growing competition in the OS market. Next, Microsoft’s strategic alliance with Nokia is discussed. Specific information on the deal and Nokia’s game plan are touched upon. It analyzes the strengths and weaknesses of the alliance. The case then proceeds to discuss recent events in the mobile OS space that might have a bearing on the success of the strategic alliance between Microsoft and Nokia. The case ends with a brief discussion on the future prospects for Microsoft and the alliance. The case is designed for MBA/MS- level students. This case study can be used as a Business Strategy/Strategic Management case. The primary focus is on Strategic Alliances.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To analyze the factors that led Microsoft to enter into a strategic partnership with Nokia
• To study the finer details of the alliance
• To assess the future prospects of the alliance in light of the rapidly changing external environment
• To critically analyze the key factors that would influence the success of the alliance

Keywords

Strategic alliance, Competition, Synergy, Business leading consumers Vs Consumers leading business, Hardware and software innovation, Patent negotiations and litigation, Smartphone market, Mobile operating system, Smartphone ecosystem, Microsoft, Nokia, Apple, Google, Windows Phone, Open Handset Alliance