Tuesday, February 15, 2011

Microsoft and Nokia

It seems like in recent days, my thoughts have constantly been barraged by news of technology, phones, operating systems, and markets shares. Nokia shares have been down significantly, and everyone is wondering if its Symbian operating system will survive, as well as the executives running the company. Symbian, until recently has been the world's most popular mobile operation system, but things have changed very quickly, and now Nokia finds itself searching for answers in a market increasingly held by "A" game systems, Apple and Android.

Nokia has made an incredibly tough decision to largely abandon current R&D efforts and join up with Microsoft in developing Windows Mobile phones. The two have banned together in order to fight back for market share from their greatest competitors, Apple and Google (Android system). While options are slim, I don't see this panning out. Neither does most of the market. In fact, five-day returns, show a 20% loss on the share price. In short, they are very late to market, lack vision, and are trying to compete against the big guys who are far, far ahead in their efforts. Porter's 5 Forces say that this company will never be the same.