Microsoft's Acquisition of Nokia: Will the Gamble Work?
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Case Code: BSTR455 Case Length: 21 Pages Period: 2011 - 2013 Pub Date: 2014 Teaching Note: Not Available |
Price: Rs.500 Organization: Microsoft Corp., Nokia Corporation Industry: Smartphones Countries: Global Themes: Acquisition |
Abstract Case Intro 1 Case Intro 2 Excerpts
About Nokia
The history of Nokia dates back to 1865 when Fredrik Idestam, a mining engineer, set up Nokia Ab, a paper manufacturing company, in Finland. In 1920, Finnish Rubber Works(FRW) became a part of the company, and later on in 1922, Finnish Cable Works (FCW) joined them. In 1967, Nokia Ab, FRW, and FCW were merged to form Nokia Corporation.
The mobile phone businesses had its roots in the electronics section founded in the FCW by the then president, Bjorn Westerlund. In 1963, the electronics section manufactured radio telephones for emergency services and the armed forces. After the merger of the three companies in 1967, the
electronics section was spun off as a separate division responsible for manufacturing telecommunications equipment on a full scale.
In the late 1970s, Nokia started taking an active interest in the power and electronics businesses. In 1981, it created the Nordic Mobile Telephone (NMT) standard and in 1987, it launched the first NMT phone, the Mobira Cityman. By 1987, consumer electronics had become Nokia's major business. In the same year, the Global System for Mobile Communication (GSM) was adopted as the standard for digital mobile technology in Europe. In 1989, the company delivered the first GSM network to Radiolinja, a Finnish company.
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