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Nokia getting disconnected while connecting
people…!!!!
BRIEF HISTORY OF NOKIA
1865

1898

1967

Wood Pulp
Mill

Rubber
Business

Nokia
Corporation

1871
Share
company

1902
Electricity

2013
STRENGTHS OF NOKIA
Experience
Largest network of selling & distribution
Strong customer relation
Wide range of products for all class
Effective advertisement and market
communication
MARKET SHARE
76.1

Market share (%)

41.8

38.5
25.6

23

5.9

Nokia

Samsung
2010

Nokia

Samsung
2011

Nokia

Samsung
2012Mar

GfK-Nielsen for
March2012
MICROSOFT NOKIA DEAL
• Microsoft buys Nokia phones, patents for $7.2B
• Proposed price consists of $5 billion for the Nokia unit
that makes mobile phones.

• Another $2.2 billion will be paid for a 10-year license
to use Nokia's patents, with the option to extend it
indefinitely.
•Microsoft hopes to complete the deal early next year.
•About 32,000 Nokia employees will transfer to
Microsoft, which currently has about 99,000 workers.
REASON FOR SELLING
• Net operating loss
• Loosing Market Share

• Complacency
• Lack of innovation

• Symbian to windows
COMPETITOR (SAMSUNG) GOT IT RIGHT


Placed its bet on Android OS for Smartphone



First to launch what many called an iPhone
look alike



Variety of Smartphone's for different segment



They understand customers changing behavior
WHY MICROSOFT BUYS IT
• Mobile is an area of tremendous potential

•Nokia's Lumia smartphones have run on Microsoft's
Windows software
•Microsoft knows that he has that potential to surpass big
giants like Samsung and Apple
• Hardware and software for their phones they weren’t
working together therefore those transaction costs
getting in the way there ,by being owned by the same
company those costs will be reduced and thus better
phones will be made
“It's a bold step into the
future — a win-win for
employees, shareholders
and consumers of both
companies”

Steve
CONCLUSION
Nokia has taken the right decision because when the
company is not doing well in the market it is very bad
strategy to be in the market only for the name.
Microsoft has also taken the right step by purchasing Nokia
mobile unit as first it was only supplying OS to Nokia’s smart
phones but now it can manufacture and use own OS and can
concentrate on the innovation of the cellular phones.
Presented By,
Garima singh
Anshool
Agrawal
Ankur Pandey
Harpreet Singh

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Nokia merges in microsoft

  • 1. Nokia getting disconnected while connecting people…!!!!
  • 2. BRIEF HISTORY OF NOKIA 1865 1898 1967 Wood Pulp Mill Rubber Business Nokia Corporation 1871 Share company 1902 Electricity 2013
  • 3. STRENGTHS OF NOKIA Experience Largest network of selling & distribution Strong customer relation Wide range of products for all class Effective advertisement and market communication
  • 4. MARKET SHARE 76.1 Market share (%) 41.8 38.5 25.6 23 5.9 Nokia Samsung 2010 Nokia Samsung 2011 Nokia Samsung 2012Mar GfK-Nielsen for March2012
  • 5. MICROSOFT NOKIA DEAL • Microsoft buys Nokia phones, patents for $7.2B • Proposed price consists of $5 billion for the Nokia unit that makes mobile phones. • Another $2.2 billion will be paid for a 10-year license to use Nokia's patents, with the option to extend it indefinitely. •Microsoft hopes to complete the deal early next year. •About 32,000 Nokia employees will transfer to Microsoft, which currently has about 99,000 workers.
  • 6. REASON FOR SELLING • Net operating loss • Loosing Market Share • Complacency • Lack of innovation • Symbian to windows
  • 7. COMPETITOR (SAMSUNG) GOT IT RIGHT  Placed its bet on Android OS for Smartphone  First to launch what many called an iPhone look alike  Variety of Smartphone's for different segment  They understand customers changing behavior
  • 8. WHY MICROSOFT BUYS IT • Mobile is an area of tremendous potential •Nokia's Lumia smartphones have run on Microsoft's Windows software •Microsoft knows that he has that potential to surpass big giants like Samsung and Apple • Hardware and software for their phones they weren’t working together therefore those transaction costs getting in the way there ,by being owned by the same company those costs will be reduced and thus better phones will be made
  • 9. “It's a bold step into the future — a win-win for employees, shareholders and consumers of both companies” Steve
  • 10. CONCLUSION Nokia has taken the right decision because when the company is not doing well in the market it is very bad strategy to be in the market only for the name. Microsoft has also taken the right step by purchasing Nokia mobile unit as first it was only supplying OS to Nokia’s smart phones but now it can manufacture and use own OS and can concentrate on the innovation of the cellular phones.