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Nokia and microsoft merger ppt

07/04/2021 Client: muhammad11 Deadline: 2 Day

MKTG 755 Fall 2019 Negotiation Case Analysis, 20% of Total Course Evaluation Instructions: • This assignment covers content related to the negotiation component only of your MKTG 755 course. 20% of total semester grade. • You are encouraged to research the merger beyond the information below. Any outside research must be properly cited and acknowledged. • The assignment is out of 20 marks, each question is worth 5 marks. • Please write the answers in Word, save the file as a PDF and upload it to the “Negotiation Case Analysis #1” dropbox folder by Saturday November 16th. 1159pm (late means -10% per day) • Your grade, with comments, will be posted in dropbox, in advance of the class on Friday November 22nd. The Microsoft-Nokia Deal International negotiation topics in business: merging two distinct corporate cultures with as little conflict as possible. International negotiation brings on more challenges than most. During the 1990’s and early 2000’s, one company dominated the mobile industry: Nokia. Established in 1871, the Finnish-born company gained a worldwide reputation for producing reliable, standard mobile phones that were internetenabled and programmed with an array of multimedia features. Eventually, competition in the mobile phone sector rose in 2007 when Apple introduced the iPhone, and Nokia soon found its market share rapidly decreasing.1 Initially, Nokia predicted the smart phone craze would die out and consumers would return to standard mobile phones, but smart phones proved to be more than a passing trend. Nokia’s management failed to understand the wave of radical innovation that revolutionized the mobile industry—as Samsung and Apple produced and sold touch-screen phones. Nokia’s failure to react to the changing competitive climate is reflected in the precipitous fall in its share price from the iPhone’s introduction to Nokia’s own smartphone introduction: its market share faltered, losing almost 10 percent On 3 September 2013, Microsoft CEO Steve Ballmer announced that Microsoft would acquire Nokia’s mobile phone division for $7.2 billion.7 Microsoft had been looking for a way to enter the mobile phone industry to better compete with Apple and Google. In acquiring Nokia’s services and devices unit, Microsoft took control of Nokia’s mobile phones and smart devices, design team, licensing agreements, and approximately 32,000 new employees. Given Microsoft’s prowess in software and Nokia’s in devices, the acquisition was anticipated to be a smooth, successful transaction.

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