Merger, Acquisition, and International Strategies Research Paper - 4

Merger, Acquisition, and International Strategies - Research Paper Example Currently, Nokia focuses on developing telecommunications infrastructures on a large scale, provision of online mapping services, and the development of mobile communication technologies (Slater, 2004). Nokia also played a great role in contributing to the development of the mobile phone industry in the early years of 2000 (Park, 2014). The company played a role in developing GSM standards, and for a considerable period of time, Nokia was one of the largest producers and sellers of mobile phone products, in the world. Nokia also entered the Smartphone industry, and this is through its platform referred to as Symbian. However, the dominance of this company, in the Smartphone industry was challenged by the emergence of Apples. This is through the production of its Android devices, and its iPhones. Furthermore, because of stiff competition from companies such as Samsung, Alcatel, etc, the market share of Nokia was beginning to fall, and it experienced a series of losses (Park, 2014). Microsoft on the other had is an American company, that specializes in the development of computer software. The headquarters of Nokia is in Redmond, the state of Washington. The company is able to develop, manufacture and sale personal computer gadgets, consumer electronics, and computer software (Slater, 2004). However, because of stiff competition from Apples, the company has also experienced a reduction in its market shares. Because of this stiff competition emanating from Apples, Nokia sought a strategic partner, who could help it, in the development of electronic and computer gadgets, that could help it achieve a competitive advantage over Apples and other companies such as Samsung. In the year 2011, Microsoft was able to enter into a pact with Nokia. Park (2014) explains that the method which Microsoft used in entering into a partnership with Nokia was through an acquisition. In 2013, the chief executive of Microsoft was