Nokia was once the dominant player in the mobile phone market but lost significant market share to competitors like Samsung. In 2013, Microsoft bought Nokia's mobile phone business for $7.2 billion in an attempt to strengthen its position in the mobile market. The deal included Nokia's phone manufacturing assets and a patent licensing agreement. It transferred 32,000 Nokia employees to Microsoft. Nokia struggled with falling profits, market share losses, and an inability to innovate, while Samsung found success with Android phones and understanding customer needs. Both Microsoft and Nokia believed the deal would allow them to better integrate hardware and software for more competitive smartphones.

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.

11. Presented By,
Garima singh
Anshool
Agrawal
Ankur Pandey
Harpreet Singh