NOKIA Harvard Case Solution & Analysis


By April 25, 2014 it was announce by Microsoft that it acquired Nokia. A number of major changes have been seen in the operations of the company as they are now offering their mobile phones at a more diverse level.
Windows Phones has great potentials of becoming the fastest growing smartphone across the globe. The portfolio of Window Phone is continuously growing with the number of award winning devices.

Microsoft plans to continue where Nokia left off.It is planning to deliver higher and innovative value to the customers of the company. The company can efficiently increase its value quality, as it will now be operating with a much more diverse workforce and efficient hardware systems.The hardware of the Windows Phone is prepared by the units of Nokia. Both the companies are efficient in catering to the needs of the customers as these two specifically focus on one segment of the mobile devices, which can directly increase their products’ quality and efficiency. If the operations are conducted efficiently, then the organization can gain huge numbers of revenues and increased level of market share globally.



• Bargaining Power of the Customers:

The mobile phone industry has a number of competitors. Since the origin and development of the industry, the industry has heavily evolved and a number of competing companies have been striving for a higher market share. The customers have a large list of options when making a purchase in the mobile phone segment.The power of the customers is rising due to the wide range of choices available to them in the market with differentiating elements.

Established players like Apple, Samsung, and Motorola etc. have been constantly striving for gaining a higher market share in the global market of mobile phones. In order to gain higher market share, the companies aim to provide the customers with the highest of values in the minimum price possible. The customers in the industry are seeking the best out of the lot at the most feasible price. The customer segment in the mobile phone industry is very price-sensitive and the customers demand the best value in against of their money.

Several customers are using mobile phones, which they have acquired through agreeing on contractual terms by a mobile phone industry. These contracts have increased the switching costs for the customers, which reduces the possibility of customers opting for any other mobile brand.

• Bargaining Power of the Suppliers:

Nokia has been operating in the industry since a long time and it has gained reputation over the period of time it was operating. The well-built reputation has positioned the organization efficiently, which allows it to negotiate with the suppliers and equipment maker in the mobile phone industry as per the conditions stated by the company. Not only due to the large existence of the company, however due to the existence of suppliers and equipment makers in abundance has helped them in gaining dominance over the suppliers. Nokia is the major player in the mobile phone industry on a global level, any supplier or equipment maker would not find it feasible to create differences with the company.

With a more software perspective, the company has developed an alliance with Microsoft. The bargaining power of software supplier would be high due to the fact that the operations of the two entities in alliance are more beneficent for Nokia itself.
Overall, the bargaining power of suppliers can be observed and stated as moderate. The company has an upper hand over the equipment and hardware suppliers however, the company heavily depends on the operations of the Microsoft, as there is no other company that can provide operations like Microsoft..........................

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