Microsoft to buy nokia's phone unit

Microsoft to buy Nokia's phone unit

Recently in September, a great and well-known company that is Microsoft decided to buy up Nokia's phone business for more than 5 billion Euros. The purchase is said to be completed by early 2014.

Indeed, Nokia was no longer able to compete with efficiency against its big and dynamic rivals Apple and Samsung that respectively registered 13 and 8 billion dollar incomes for the fourth quarter of 2012.

In this context of global growth and globalization, Microsoft felt a financial opportunity opting for the takeovers of Nokia, enabling the American Software and PC maker diversify its production line. The American software giant definitely took into account that offering the possibility to provide consumers with gadgets and services such as Apple has been doing so far would give it more weight.

Nowadays, it seems crucial for companies to diversify and strive for the gain of market shares in order for them to earn more money because they are in a position to fully satisfy customers.

Now, let's try to explain as simply as possible Nokia's decline. At the very beginning of the 21st century and in the late nineties, Nokia was set at the head of the mobile phone industry; it was doing well and was used to turning large profit thanks to significant cell phone sales. The reason for Nokia's failure is not that easy but quite logical in the end. Actually, Nokia entirely took control of the cell phone market for being oriented towards research and development in hardware but was not enough concerned about the importance of having good software integrated in the product. Meanwhile, big international companies such as Apple saw the necessity of providing cell and future smart phones with good software. But what probably turned out to be the starting point of Nokia's collapse (long term) was the Iphone’s release in 2007 that was immediately adopted by large number of consumers. This brand-new product seduced on the market place and caused a lot of trouble to Nokia that believed that its superior hardware designs would win over users. But even though the Windows Phone has been a flop, the truth is that, in 2010, Nokia had already introduced too many disappointing phones, and its operating system had already proven too cumbersome and unintuitive to convince potential buyers.

To put it in a nutshell, we can think that Nokia should have tried to make biggest efforts to remain competitive on the market. By adopting coherent and logical product positioning, Nokia could have had a different future…