Friday, June 24, 2011

Recommendations to Nokia & Microsoft regarding their partnership!

For the Partnership:
1. The alliance should focus not only on the consumer business but also on the enterprise business as in this area it has a distinctive value proposition relative to its competitors.
2. Try to create an industry standard by sharing some of the technologies they have created.
3. Create a bandwagon effect by convincing the industry that this alliance will provide a differential that will make them market leaders; aiming for a self-fulfilling prophecy.
4. Prepare an exit strategy in case the partnership doesn’t work - Microsoft to potentially look at buying another operator and Nokia to use a third party operating system.

For Microsoft:
1. Microsoft should buy Nokia within the next 3-5 years if the partnership is successful.
2. Leverage on network externalities. MSN Messenger for user linkage, MS Office and Exchange as complementary products that are widely used.
3. It is in the interests of Microsoft to leverage the Nokia Microsoft capabilities to push the smart phones aggressively in the United States.

For Nokia:
1. Focus its R&D investment on developing the Meego platform and slowly drop the effort on the other operating systems.
2. It should also ensure the retention the top talent, specifically within the R&D department by incentivizing the workforce and keep communicating the benefits of the partnership.
3. Nokia should give attention to customer service and support for the current customers using Symbian and facilitate a smooth transition of these customers to the WM platform.

Read:
1. Nokia - Microsoft Partnership Risks
2. Read: Nokia-Microsoft Partnership implementation background and questions