Microsoft's Strategic Alliance with Nokia
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Case Code: BSTR406 Case Length: 14 Pages Period: 2011-2012 Pub Date: 2012 Teaching Note: Not Available |
Price: Rs.500 Organization: Microsoft Corporation, Nokia Corporation Industry: Smartphones Countries: Global Themes: Strategic Alliance, Competition |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Microsoft and the Mobile OS Space
Microsoft entered the mobile operating software (OS) market on April 19, 2000, with the launch of Pocket PC 2000 (codenamed Rapier). This software, based on Windows CE 3.0 , was meant for Pocket PC devices . The OS came with Pocket Office, Pocket Internet Explorer, Microsoft Reader (software that allowed users to read e-books), Windows Media Player, Notes (note-taking application), Microsoft Money (personal finance software), etc...
The Changing Mobile OS Market
In 2003, when Microsoft launched WM 2003, Palm Inc. was the leader in the smartphone market. Palm devices used proprietary software, called Palm OS. However, companies like HP, Hitachi, and Dell incorporated Pocket PC 2002 or Mobile 2003 in their smartphone models. In the first quarter of 2004, Microsoft was able to capture 40% of the smartphone OS market. By the third quarter, sales of Microsoft CE-based phones exceeded that of Palm OS phones...
Microsoft and Nokia Force Strategic Alliance
On February 11, 2011, Nokia and Microsoft announced a roadmap for a broad strategic partnership. The partnership was to exploit the strengths of both companies and "build a new mobile eco-system." The proposed partnership included the following:...
Google Buys Motorola Mobility
In August 2011, Google purchased Motorola Mobility for $12.5 billion. According to analysts, the search engine giant took this step in response to the legal threats by Microsoft and Apple. "Google gets Motorola Mobility's portfolio (17,000 patents)...it may position Google to defend itself against more fundamental IP attacks, and increase counter-threat and leverage in global patent negotiations and litigation," said Mike Abramsky, an analyst at RBC Capital Markets...
The Road Ahead
In 2010, Microsoft had reported net income of nearly $19 billion, up from around $15 billion in 2009. Microsoft was betting big on online services, search, entertainment, mobile computing, cloud computing, etc. However, in the mobile OS market, the company continued to cede market share to Apple and Google in 2010 and in 2011. In May 2011, Microsoft entered into handset agreements with Acer Inc., Fujitsu Ltd. and ZTE Corp. It also announced that it would add around 500 features in the fall release of Windows Phone 7, christened Mango...
Exhibits
Exhibit I(a): Worldwide OS Market Shares based on Smartphone Sales
Exhibit I(b): Smartphone Market Shares in the US by OS
Exhibit II: Financial Information on Nokia
Exhibit III: Popular Mobile Applications
Exhibit IV: Legal Suits among OS Vendors
Exhibit V: Microsoft's Five-year Financial Highlights
Exhibit VI: Comparison of Financials of Microsoft, Apple and Google for 2010
Exhibit VII: Photo of Nokia's Lumia Series Phones
Exhibit VIII: Worldwide Smartphone Market Shares by Manufacturer
Exhibit IX: IDC's Forecast of Worldwide Smartphone Operating System2011 and 2015 Market Share and 2011-2015 CAGR
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