Options and Strategies Available to Microsoft and Nokia
Elop has the ready option of calling Microsoft to step in to help the sinking Finnish company. Microsoft may consider to come to the help of Nokia as:
The Microsoft has the excellent option of entering the cellphone market.
By helping the Nokia, Microsoft has the option of entering the rich revenue green European market.
Microsoft may opt to save its annual investment of $1 billion per year in the Lumia.
The failure of the Microsoft to help Nokia may result in the interference by Google or some other big gun which may snatch the European cellphone manufacturer and the plans of the Microsoft to enter the mobile OS market may fail despite its huge decade-long investments. Analysts are of the view that Windows 8, the recent product of Microsoft in being, is being developed as the future operating system of the mobiles. Nokia may provide a rich target for the Windows 8.
Microsoft may develop new software for the millions of the existing Nokia clientele in the Afro-Asian-Pacific regions, opening up the new avenues for the Microsoft.
Microsoft should help Nokia explore the new frontiers of tablet industry or the huge existing clientele of Nokia may, alternatively, decide to move to the Android or Apple’ iOS.
Microsoft Option and the Benefits for the Nokia
A recent example for the collaboration of Microsoft with other business entities is a strategic partnership of Microsoft and Barnes & Noble. The deal resulted in the inclusion of Nook, the app for the eBooks, in the Windows 8 against the investment of $300 billion for the equity stake of 17.6%, proved to be highly successful. Investors at the NYSE Stock Board approved the move and stock of Barnes & Noble (NYSE: BKS) saw the upward trend of 23.68% within a week. A small investment from $60 billion cash reserve of Microsoft, may prove to be successful not only for the Microsoft but also for the Nokia.
Investment analysts and bankers are of the view that the $1 billion existing Microsoft support for Nokia may go beyond this figure in case of request from Nokia. This may not result in owning the Nokia but some other financing options, such as loans and/or equity stake, are there for both the companies. Traditionally, Microsoft has kept itself clear of the hardware business as it does not want unnecessary competition with the manufacturers that use its software. So, the higher equity stake in the Nokia which has $12.2 billion worth, is almost out of question, for the time being.
No comments from Microsoft and Nokia are available on this issue.
Other options available for the Nokia to move out of difficulties
There are many pending painful decisions Elop have to take to retain its control as CEO over the one-time history making European giant.
According to Reuter, Nokia is said to be in talks with private equity firm, the Permira, to sell out its British luxury subsidiary ‘Vertu’ (the maker of the World’s most expensive mobile phones) but this deal may not produce more than few hundred million dollars.
About the best intellectual property of Nokia in the industry, Elop informed the shareholders on May 3 that at present there were no plans for the wider patent sales.
He desired to keep the $8.1 billion location and mapping business, acquired from U.S. firm Navteq as a core asset.
Last year, Nokia tried to sell out half of Nokia Siemens Networks (NSN) but the process collapsed over the issue of pricing.
Analysts are looking at the scenario with interest and waiting or the decision from Elop which would draw the future of the IT industry in Europe.
As reported by Victoria Howley on Yahoo Finance, Stephen Elop, CEO of Sinking Finnish IT Giant, Nokia, compared his position in the company sometimes ago in January 2011, with that of standing on the burning platform. Though, some of the analysts, like John Strand, the founder and CEO of Danish consultancy ‘Strand Consult’, are of the view that it was Elop himself who put the platform on fire.
With NOK which has lost 90% of its worth during the last five years, and with more than one and half year in Nokia as CEO, Elop has not been successful to boast its sale while the debt ranking of Nokia has been rated unsatisfactory by two of the three major credit ratings agencies.
Failed operational strategies of Nokia
Talking about the strategic failures of Nokia in a previous article on Technorati on February 9, 2012, I pointed out some of the blunders of Nokia, some of which are proving to be true. They are refreshed below in the changed scenario:
The major operational flaw in the Nokia strategies has been its failure to, actively, respond to the technological advancement by its real competitor US IT giant, Apple, whose iPhone series posed the real major threat to the Nokia domination in the cellphone market in year 2007. Nokia failed to pace with the rapidly changing technology in the smartphone industry and to adopt/modify its products according to the rapidly changing scenario.
Nokia failed to enter the very promising, rich and juicy market of smartphones in Northern Hemispheric Americas and Europe but continued to focus mainly on the rather less developing Afro-Asian-Pacific regions where Nokia dominates but with relatively low revenue margin. Retaining the Sales-Rich Afro-Asian-Pacific regions along with the intensive marketing advancements in the financially rich smartphone markets of Americas and Northern Europe with state of the art technologies would had proved to be a different win-win successful strategy.
Nokia missed the flight on the manufacturing front and could not fasten its shifting of costly and less technologically advanced European manufacturing operations and its decisions to shift its manufacturing units to Far Easter Asia are a little delayed and proved not to be successful ones.
On soft side, Nokia must had taken the aggressive approach by adopting the other successful operating systems as well, like Android along with Windows Phone and its own Symbian and Belle. Conversion of Symbian to Carla (to be converted in the 4Q of 2012), announced on February 23, 2012 was warmly welcomed but it was a little delayed move.
The major emphasis of Nokia – though the best one – was to rely on Microsoft who is extending $1 billion per annum to the Nokia for the usage of its operating software, was lucrative enough for the Nokia and was successful move by Microsoft to prevent Nokia to look toward to other options like Android. Nokia failed to apply different operating systems in its different gadgets as is done by Samsung and rather took least risk for Lumia, a strategy which, unfortunately, failed.
Nokia, failed, intentionally or unintentionally, to steal its share from the tablet market – a hot market where every entrant enjoys rich returns. At the end of the year 2011, Elop categorically had denied any plans to enter tablet market. One must remember that it is the iPad whose exceptional sale has been keeping the flag of the Apple high in the market, after Apple failed to launch the long awaited iPhone 5.
The options, available to Nokia are limited but worth consideration. But, before going through the Nokia options, lets see the options and/or strategies available to the Microsoft:
In the era of Angry Birds, Dolphin Gameware has introduced a new game, Sexy Birds, for the bird lovers and the game lovers who are thrilled by the action games.Theme of the game starts from the time when the cute and Sexy Bird are waiting for you to help them to win adventurousness levels in the new game.
Here the birds who can fly, run and kill their enemies, make it the wonderful ambiance and game play. You may comfortably include this game in the best games you have ever played.As its all levels are free, why not try it for your lovely Nokia N8.
Run! Run! Run! Lets be the first to try the best FREE game.
The train defender has been a popular theme not only for the video games but also for the Hollywood movies which reminds the viewers about the times when the Wild Americas were being tamed and the trains were under attacks from the robbers, gangsters and even from the tribes.
The train defender is a breathtaking action game for the N8 Belle Nokia phones by Ovi Store, developed by PlayBuff. Its theme has been set for you as a defender to fight over the train to save the train passengers who are threatened from brutal dacoits.
What you have to do is to demonstrate your enormous courage, skills tactics to complete the 3 levels of the game with raging and with revitalizing powers in your hands. What we can do for is Best of luck!!!
As reported by NokiaPowerUser, the operating system for the Nokia 1st generation Belle devices, would be updated by Nokia Carla in Q4 2012 while Nokia 603, 700 and 701 would be powered by Nokia Carla in Q3 2012.
1. The first generation Belle devices, receiving the updates from Carla would be:
2. The second generation Belle devices, to start shipment with Carla in Q3 2012 will be:
As per this picture, leaked by a developer from a conference in Mexico, Nokia Carla update for 1st gen devices will be:
1. Lighter version of Carla as most of the 1st generation Nokia updates lack NFC and are less than 1Ghz processing power
2. It is reported that browsers and re-sizable widgets will come as updates along with enhanced smoothness and fixed bugs
3. N8 successor as well as, at least, two more devices to be launched 2012 would be powered by Carla
4. Also Carla is expected to come in late 2012 or early 2013 with following major improvements:
- Dolby surround
- New improved Widgets
- Improved Browser [Version 8]
- There may be more than one upcoming device, with both Carla and Donna.