Monday, August 12, 2019

Multinational Acquisition (MICROSOFT acquired NOKIA Essay

Multinational Acquisition (MICROSOFT acquired NOKIA - Essay Example With this concern, the essay intends to elaborate the acquisition strategy of Microsoft Corporation over Nokia Oyj. Microsoft recently underwent strategic acquisition of different brands of Nokia. The company opt for patent acquisition specifically of certain mobile phones that were traded by Nokia previously. Microsoft acquired patents of around 8500 designs that were previously traded by Nokia. However, Microsoft did not opt for replacing the existing brand name that Nokia is using for branding its products (Singh, 2014). Thus, the essay will analyse the different acquisition techniques followed by the organisation i.e. Microsoft when acquiring Nokia. The type of acquisition, which Microsoft underwent, is patent acquisition. In order to describe the acquisition, it can be inferred that the company acquired nearly 8500 patents of designing certain brands of Nokia. Patent is duly considered to be an intellectual property for the companies. The acquisition of the patent rights eventually provided Microsoft with an added advantage to develop an authority to deal with certain authorities. It is worth mentioning that with the recent development of different phones that designed by Apple and Samsung, the well-developed market of Nokia fell drastically. Furthermore, as the Android technology based smart phones took over the market and developed its leadership over Windows software, Microsoft even faced a massive downturn. The giants of their respective areas of operations faced severe backlogs and developed a huge turmoil during this convergence of the market. Thus, Microsoft went with strategic development of acquiring the 8500 design p atents of Nokia specifically in the field of smart phones (Ali-Yrkko et al., 2013). The acquisition that took place between the two companies was mostly based on the intellectual properties, which are owned by Nokia. Microsoft eventually acquired the business units that

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