The Nokia-Microsoft Alliance in the Global Smartphone Industry (Essay Sample)
The week Four assignment is to complete and discuss the case study: "The Nokia-Microsoft Alliance in the Global Smartphone Industry" (p. 239).
Write a 3 page paper in APA format on the major points in the case. What lessons can be gleaned from the experiences that occured with respect to the alliance and lessons learned from a cultural perspective. What could have been done better? Use the text and any outside references, but cite all references used.
Submit your assignment as a Word document, 3 pages in length. The paper must have a cover sheet, a reference list and be written in APA style format (edition 6). As a reminder, plagiarism will not be accepted. if you have doubts about the paper's content or originality go to: www(dot)turnitin(dot)com
In the year 2011, Nokia's CEO Steven Elop and Microsoft's CEO Steve Ballmer made a strategic alliance to collaborate in the development of a new third ecosystem for smartphones. In this regard, Nokia would use Microsoft's WP7 OS with its Nokia Devices. The strategic alliances, Nokia-Microsoft resulted in the creation of a vertical strategic alliance and engaged in the market transactions. Besides, Nokia and Microsoft alliance meant that the firms remained mutual, independent, cooperative and share information. These factors could lead in an uncertain behavior; thus, possibly result in opportunism. Nonetheless, a strategic alliance is loose, evolving and it needs much trust, things, which are often hard to maintain in the business field (Anwar, 2012).
Lessons from Alliance
Strategic alliances are characterized by instability, suboptimal performance and the possibility of breakups, which suggest a high failure rate of the Nokia-Microsoft alliance. In the same context, cooperation is paramount; thus, the Nokia-Microsoft alliance may encounter issues with cooperation. Nonetheless, the incentive to take opportunism is advantageous as it will help in maximizing the gains of each company; thus, resulting in cost of the agency. For the two firms to win and achieve profitability, then, they must cooperate voluntarily. On the other hand, for the two companies to be succ...
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