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The case study (Nokia) is attached. Analyse the case study to answer the following 2 questions:
1. Do a SWOT analysis of the Nokia-Microsoft strategic alliance in the global mobile phone industry.
2. Compare and contrast Nokia and Microsoft regarding their global operations and competitive advantages.
References are required, diagrams, official publications, statistic etc
concise explanation and analyse.
case study summary is required for appendix.
4. What are the common sources of incompatibility in cross-border alliances? What can be done to minimize them? 5. Explain what is necessary for companies to successfully imple: ment a global sourcing strategy. 6. Discuss the political and economic situation in the Russian Feder-ation with your class. What has changed since this writing? What are the implications for foreign companies to start a joint venture there now? 7. What is involved in strategic implementation? What is meant by creating a “system of fits” with the strategic plan?
CHAPTER 7 • IMPLEMENTING STRATEGY 259
8. Explain how the host government may affect strategic implementation—in an alliance or another form of entry strategy. 9. How might the variable of national culture affect strategic imple-mentation? Use the Mittal Steel example to highlight some of these factors. 10. Discuss the importance of knowledge management in IJVs and what can be done to enhance the effectiveness of that process.
Application Exercise Research some recent joint ventures with foreign companies situated in Russia or China. How are they doing? Bring your information
to class for discussion. What is the climate for foreign investors in Russia/China at the time of your reading this chapter?
Internet Resources
Visit the Deresky Companion Website at www.pearsonglobaleditions.com/deresky for this chapter’s Internet resources.
CASE STUDY The Nokia-Microsoft Alliance in the Global Smartphone Industry (circa 2011) The Nokia-Microsoft strategic alliance was announced in early 2011 to cooperate in the de-velopment of smartphones. The Wall Street Journal wrote: “Nokia calls Microsoft for help.”‘ The Financial Times observed: “Elop jumps into the arms of former boss.”2 The alliance was specifically initiated by Stephen Elop, an ex-Microsoft executive who had worked with Steve Ballmer, CEO of Microsoft. No wonder Nokia hired Elop to become its CEO in 2010. This was a calculated move by Nokia to grow in an industry that carried good prospects for the future. In addition, Elop’s expertise was in the software sector, where Nokia wanted to venture into the future. Both companies needed a partner to expand in an industry that was in a growth mode. Besides this, Nokia was particularly vulnerable because of its losing market share and because Apple’s iPhone was growing in the U.S. and global markets. Microsoft was interested in Nokia because of its long-term interest regarding introducing Windows phone technology/software. Since Nokia continued to be a global player in the cell phone industry, it made sense to create a corporate tie-up that aimed at global expansion for both companies. Success of Apple’s iPhone was another factor in seeking a long-term alliance in a market that has grown multifold in the global mobile phone market. In 2012, Nokia was the largest manufacturer of mobile phones and other telecom gear in the world with revenues of $55 billion and a market capitalization of $19 billion. Microsoft, on the other hand, was the largest software maker in the world and generated revenues of $69 bil-lion. The company carried a healthy market capitalization in 2011 that stood at $266 billion.3 By being a cash-rich company, Microsoft was able to inject a sizable amount of money in the alliance. As of February 2012, a closer look at the alliance reveals that both companies’ plans worked well. Nokia has released a new series of mobile devices, called Lumina, with Microsoft’s Windows technology. At the same time, Nokia continues to lose market share in the global mobile industry because of its aging technology (“Symbian”). Google’s Android is a clear winner because of high demand, followed by Apple’s iPhone. Google has done well since its acquisition of Motorola’s Mobility.4 Value Line in 2012 wrote: “Nokia’s operating results continue to deteriorate; the transition of the smartphone is under way; over time, Windows Phone will be the software driving Nokia’s upscale handsets.”5 Although Nokia was always the market leader in mobile technology, its anemic strategies in the global market indicate that the company is losing steam in the mobile phone industry. The situation is the same with Research in Motion’s Blackberry, which continues to lose market share in global markets. Just a few years ago, Blackberry was the main player in the global mobile industry with its well know technol-ogy and brand name.6
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