MANAGEMENT:Microsoft-Nokia Deal (A Marriage of necessity)

In recent days, there was news of $7.2 billion deal all around. Some expert called it an overpriced deal, some a good deal for Nokia and some were skeptical about software giant buying a mobile company. As per me, this deal is a marriage of necessity. In digital world there’s a famous saying conveying the message that here all landscape changes with one mouse click. Who can know it better than Nokia? From near monopoly to fighting to survive in market this deal has come as a boon for Nokia. They good the best deal from the market and gave the company into suitable hands. Also they did the deal with the company who gave them lease of life.


There were days when it looked all good for Nokia. Name of Nokia became synonymous with Finland and vice-versa. But then good fortunes can never last longer, downfall for Nokia happened with the innovation in mobile technology. Companies came up with Dual sim, some with triple sim and Longer battery life only thing they missed is the hammer power of Nokia phones. But nobody cared, since market has changed, customers tastes has changed, they wanted a use and throw phone not a life-long friend. Samsung did the biggest harm with the affordable prices, product ranges and agile manufacturing. I may seem like talking from Indian market perspective only and it seems right. India has the largest youth population who carries multiple phones with multiple sim. Brand loyalty had gone away. Customers wanted to try new things. High income customers too moved away from Nokia. Remaining damage was done by android phones. Now everybody wanted a smart phone without symbian platform. That’s why one should never be rigid about their products in technology business.

Now the time had changed and Samsung became the new household name. People who couldn’t afford an I phone went for Samsung  and those who couldn’t afford both and wanted a phone with speakers who can make noise in Km range went for brands like Micromax, Maxx, lemon  and etc etc. Also don’t forget Black Berry and HTC phones.

It looked like all over for Nokia then they showed flexibility and came up with Dual sim technologies but till then time had passed a lot. Then Microsoft came as rescuer and Nokia launched smart phones on windows platform. It clicked and they gained some market reputation in high-income group. My tech friends says it’s even better than android.


So the time was right for Nokia to cash and Microsoft took it for diversifying their portfolio. With this acquisition, Microsoft found a very big market and a good team with Nokia CEO Stephen Elop. Some says he can even take the charge as Microsoft CEO in near future. Microsoft has Steve Ballmer to integrate the Nokia with Microsoft in best way in 12 months. Let’s wait and watch the new strategies adopted by the software giants as Ballmer has already labeled it as a “bold step in the future”.