The Nokia-Microsoft analysis has benefited from Microsoft software expertise. Microsoft has its name and brand well established in the cell phone industry. Nokia as well is a global player in this industry. Nokia was the largest manufacture of cell phones in to 2012. Both companies needed a partner that complemented them in the areas they lacked expertise. Nokia has been interested in introducing Windows software to their phones therefore this seemed like a logical alliance to make. But with this alliance strengths also come weakness, opportunities and threats.
A weakness in regards to this alliance would have to be Nokia losing market share. The cell phone industry is in a constant growth and with Apple’s iPhone growing not only in the U.S. but globally, alliances as such is a way to stay in a competitive position in the market. Nokia technology is aging and this is a weakness to the alliance. Although they have already launched phones with the Windows software they are still lacking the updated technology. According to the New York Times article “One year later, Nokia and Microsoft deliver” the alliance planned seemed to work even though Nokia continues to loose share. The opportunity they have is that to expand globally as Nokia has an established global market. Google’s Android and Apple’s iPhone continue to be a threat in the cell phone industry. They continue to expand and to expand to global markets. The constant change in consumer wants and needs in the cell phone industry is a threat in itself. (One year later, Nokia and Microsoft deliver)
Nokia has a clear advantage globally than Microsoft. Although Nokia is losing market they continue to hold an advantage in Latin America and Asia due to their established clientele and operations. Microsoft in contrast is a cash rich company which helped by bringing a significant amount to the alliance. Microsoft aside