Executive Summary
In this assignment we have focussed on Nokia and Google and their chief Amalgamations and Acquisitions and Joint Alliances.The jobs faced by the company after their Amalgamation and Acquisitions or Joint Alliance is covered within the header and paragraph alternatively of doing new headers.
Introduction
Merger & A ; Acquisitions
The modern planetary concern environment is characterized by the increasing figure of international amalgamations and acquisitions. The grounds behind this widespread phenomenon are largely laid on the changeless rise of the economic and industrial globalisation which has well increased the worldwide competition. Companies have assorted strategic options available to them in order to accomplish their growing aims and to vie efficaciously in the planetary market place. The first cardinal determination they must do is whether to turn incrementally or to take a elephantine leap forward. Incremental growing options include presenting new merchandises or services, heightening bing services to turn top-line gross, and come ining into new markets. ( Douglas D. Ross, 2005 ) .
If the company program to take bigger stairss in footings of growing ( the ‘leap forward ‘ attack ) , possibly the fastest manner for the existent companies to spread out their operations internationally in such context and to take advantage of the cosmopolitan market place is by unifying with another company or geting other companies. Indeed, the amalgamations and acquisitions represent one of the powerful factors of the farther transmutation of the societal and economic life while the “ integrating of national economic systems into the international economic system through trade, foreign direct investing, capital flows, migration, and spread of engineering ” are stretched all around the Earth. ( Wikipedia: globalisation ) . However, amalgamations and acquisitions correspond to important alterations in organisational conditions that, for at least some of the new organisation ‘s members, require from them to set to new cultural norms and follow basically different ways of making things.
Patrick A. Gaughan ( 2007 ) in his book writes about the amalgamations and acquisitions outgos since the twentieth century to presents by separating five different moving ridges that are illustrated by illustrations of amalgamations and acquisitions at each minute. Furthermore, he presents the different types of amalgamations and acquisitions: horizontal and perpendicular minutess and besides the pudding stone amalgamations. Plus, harmonizing to the writer two major motives dominate the activity of amalgamation or acquisition: the growing through taking advantage of the acquired company ‘s resources and the synergism esteeming the fiscal math equation that shows that “ 2 + 2 = 5 ” .
Our chosen two administration are NOKIA and GOOGLE.
Nokia ‘s Merger and Acquisitions
Nokia, a name, a trade name which does n’t necessitate any debut.It is a universe known mobile phone company which ever kept itself up to day of the month with the market needs. How much technological alteration they adopted could be found by comparing their old theoretical account of 3310 to the current Nokia X9 theoretical account ‘s. On comparing Nokia with the Ansoff ‘s Model ( see Appendix Fig A ) one can recognize that Nokia does busy the bulk of the market and hence are seeking to concentrate on Product Development and Diversification i.e. presenting new merchandises in the current market and new market. Due to the high volume of competition it has to maintain itself updated with all the characteristics of its rivals in order to stand and vie with them side by side. Secret to Nokia ‘s success lies in its Merger & A ; Acquisitions and its joint confederations and strategic picks.The Market is truly saturated and in order to be successful one has to fall in custodies or kill little fishes in the market.
Nokia ‘s chief scheme was Merger and Acquisitions with many celebrated companies and its joint confederations in order to vie with its celebrated rivals such as Apple, Sony Ericsson e.t.c.From 2002-2010 Nokia ‘s major Amalgamation and acquisitions can be seen as under:
Nokia made a major investing in Redback Networks in 2002 to supply broadband webs to its consumers of following coevalss maintaining assorted possibilities in head.With cyberspace comes applications such as electronic mail and progress agencies of communicating hence acquired Eizel to heighten its characteristic, so came competition from Google of supplying pilotage tools so in order to get by up to that in 2006 Gate5 was acquisitioned by Nokia to supply the function and pilotages characteristics to its n95 series with a fillip to supply music experience to clients during the same twelvemonth it besides acquired Loudeye Corp which specialized in digital media distribution because it was out at that clip that Apple were establishing their Iphones with the characteristic of itunes for its consumers, so decidedly maintaining the competition in head Nokia took this measure.To enable its characteristic of synchronising to multiple decide platforms including Palm operating system and Windows mobile it acquired Intellisync in Feb 2006.
Long gone are the yearss when people in order to direct images to other had to scan their images and had to get off it, this coevals is of fast gait and maintaining that in head Acquisition of TWANGO a celebrated media sharing solutions administration which helps in sharing material such as exposures videos e.t.c. was acquired by Nokia In July 2007.Acquiring all these companies in order to heighten applications and serves means nil without doing it compatible for other nomadic device platforms and desktop application, hence in order to make this Nokia went for Trolltech a company with expertness in a cross functionality platform for nomadic devices and desktops application.
In order to farther heighten its characteristic of maps and pilotage tool it acquired NAVTEQ in July 19 2008.A company which fundamentally expertise in it.Nov 04 2008 With the acquisition of OZ communications Nokia made itself eligible to vie in the market where it can supply services as instant messaging and electronic mail.Nokia ‘s acquisition of the Symbian limited n 2008 was great measure frontward because shutting of this trade convey together many large names to work together such as AT & A ; T, LG Electronics, Motorola, NTT DOCOMO, Samsung, Sony Ericsson, ST-NXP Wireless, Texas Instruments and Vodafone.
In 2009 Nokia Acquired Plum and Dopplr through this acquisitions Nokia Dopplr members portion their programs and webs through their societal web foregrounding interesting topographic points around different countries in order to research different metropoliss whereas Plum is all about societal media and sharing service between private groups.And in order to do the above service secure it acquired Cellity a German based company which specialises in the security of these societal web and on top supplying popular communicating channels such as facebook or chirrup to interact firmly in order to heighten its characteristic. ( beginning: hypertext transfer protocol: //www.nokia.com/press/press-releases accessed on 19/03/2010 )
GOOGLE-MERGER AND ACQUISITION
WWW or worldwide is all about linking people from all around the universe and giving them the chance to portion that what came in the head of Larry Page and Sergey Brin who came up with Google in 1998 doing it a top planetary company.Google a company known by many and as we all know is rated as the No.1 hunt engine had a really different scheme. As one sees its advancement and accomplishments from 2002- 2010, one has to complement on its scheme which was entirely based on busying market on the footing of the demands of consumers.
Instead of viing with its rivals Google started off with friendly handshakings with its rivals fall ining custodies with them in order to derive their market portion, due to the fact that when a new company enters the market all the large fishes wants to eat it.Google ‘s association with many large companies such as AOL, Earth nexus and Ask Jeeves gave it a batch huge exposure in market.Hearing about Google ‘s acquisition nowadays has become a day-to-day norm.Google ‘s Executives mingle with other company executives which helps in maintaining them informed of the markets current demand and helps Google to remain one measure in front in the game.
Google -Applied Semantic and Kaltix
In April of 2003 for the interest of doing Google ‘s advertisement and hunt tool more power it took over Applied Semantic a company which specialised in it and Kaltix which focussed on the similar committedness like Google of introducing hunt engineerings in faster and efficient manner for consumers. Kaltex a company which specialised in supplying digital images of locations route maps and digital function to users to entree it while sitting at place through their computing machine attracted Google of its advanced thoughts and hence Google took involvement in it and eventually acquired it in 2004.
A company called Picasa supplying the service of digital exposure publication to clients caught the eyes of Google and Google hence acquired it in order to do it work for themselves and supplying its consumers with the installations of exposure printing easy and rapidly in 2004.In selling companies, the chief focal point is to understand the consumer behavior and to to the full understand the experience of clients ( Kotler 2005 ) , since Google was started as a aiming advertisement company so it was really of import to understand these scenarios and in order to make this a company named Urchin was therefore acquired by Google.
As far if we compare Google ‘s scheme to Ansoff ‘s matrix we can reason that Google started off with the Market Penetration scheme in order to come in the market with the hunt engines. Then subsequently on it easy changed its scheme to Product Development where as offering New Merchandises such as Google function, digital media sharing e.t.c under one name to its consumers which other companies were making separately.
Google and YouTube
YouTube founded in 2005 a web site which was designed for people to portion their pictures with the universe was acquired by Google in 2006, in order to farther heighten its characteristic and as one sees now there are many Television channels such as Channel 4 and the famous persons private channel in order to pull more audience Presently sharing more so 70,000 pictures uploaded day-to-day and about more so 200 million pictures are viewed doing it ideal to aim audience for advertizements.Building one of the largest picture sharing community online along with the expertness of Google ‘s information ‘s direction gave YouTube a large success.
“ The YouTube squad has built an exciting and powerful media platform that complements Google ‘s mission to form the universe ‘s information and do it universally accessible and utile, ” said Eric Schmidt, Chief Executive Officer of Google.
Google and Double Click
In 2008 Double Click Inc was acquired by Google because this company had experience and expertness in picture, Mobile, Ads and doing digital medium more effectual. Due to the expertness of this company if it is acquired by Google can assist it in its others concern sectors in order to better efficiency for e.g. YouTube can be made more efficient, Google ‘s Android Phones can utilize this engineering every bit good and therefore after judging all these factors Google made the determination of geting it.
Google and On2
“ Today picture is an indispensable portion of the web experience, and we believe high-quality picture compaction engineering should be a portion of the web platform, ” said Sundar Pichai, Vice President, Product Management, Google. “ We are committed to invention in video quality on the web, and we believe that On2 ‘s squad and engineering will assist us farther that end. ”
On2 which is a various developer of the picture compaction engineering was therefore taken by Google to increase its efficiency in footings of its YouTube. in 2009. On2 is a company with large names as a client such as Skype, Nokia, Sony e.t.c.
Joint Venture
Nokia -Sanyo
In 2006 in Japan Nokia joined custodies with Sanyo with the end of being the planetary leader in CDMA phones. Nokia and Sanyo started a joint venture to concentrate on the Code Division Multiple Access ( in short CDMA ) phones.Its a new genre of 3rd coevals phone which transportations and have informations at a much faster rate so the old versions of phones viing against Samsung electronics.CDMA engineering was being presently used in America by Sprint, Verizon and e.t.c. Nokia holding the repute of large trade name name supply expertness and had a good relation with more so 56 CDMA bearer clients whereas as Sanyo had the expertness of bring forthing high -end CDMA manus sets.Together they can strength up and go more powerful in the concentrated market of great competition. Expecting the joint venture will better its opportunity of wining the market.In the same twelvemonth they called off their program because they thought it was more of import to concentrate on other options instead so looking at CDMA market
( www.sanyo.com )
Nokia and Siemens
In 2006 Nokia and Siemens joined custodies to confront the competitions in the market against the rivals due to the fact that both companies focussed on radio and wire line telecommunications so organizing a joint venture will beef up them more and would bring forth synergism, but this was non an easy undertaking.Both of these companies had really different civilizations.Siemens civilization was more formal and strategized opposed to Nokia ‘s civilization which emphasized on flexibleness.Shreader and Self ( 2003 ) name the civilization, the brand or interrupt factor in the joint ventures or amalgamation and acquisition. Nowak the caput of HR in Nokia discovered that without puting norms success of the company wo n’t be possible Nokia ‘s market standing in the radio webs concern and its incursion among Tier 1 operators complimented Siemens ‘ strengths in wire line, optical, exchanging and the converged nucleus, every bit good as its strong Tier 2 and Tier 3 client base.
On the first twenty-four hours of the amalgamation 35000 employees belonging to Siemens joined in every bit compared to 25000 of Nokia.Merger is non something where one merely mix and lucifer and hope for the prosperity but alternatively its something where 1 has to incorporate every thing successfully for benefit of the companies.Nokia ‘s work attitude amongst employees was really flexible giving its employees the capacity to accommodate.they did non had any structural attack towards jobs and all the muss was handed to the directors to work out.whereas as Siemens had a structural attack and a logical manner towards patterned advance giving clear defined thoughts to programs and attacks.Hence at one terminal Nokia was excessively flexible whereas on the other manus Siemens was all about difficult and fast regulations and processs.
Nokia ‘s civilization as told above was really flexible and informal and the determination devising was pushed down towards the directors and the relation between them was much more relaxed so in order to plan the new civilization for Nokia Siemens Network they wanted to maintain it flexible as earlier but wanted to denote functions and duties every bit good.Language became a barrier to some extent every bit good because Nokia adopted English as their tongue franca but compared to Siemens they spoke different linguistic communication in their different parts.Nokia employees used to pass on with each other through text messages whereas the Siemens employees used formal agencies of electronic mail which took longer clip.Its been more so 3 old ages and the success of NSN civilization can be seen. ( www.datamonitor.com/siemens-nokia/alliance accessed on 19/03/2010 )
Nokia and New Alliance
China as we all know produces good engineering at a cheaper monetary value is a good topographic point for companies like Nokia. In 2009 Nokia planned a united Venture with China ‘s New Alliance on 50-50 portion footing. The ground being that New Alliance has an expertness N supplying best nomadic services in China compared to other rivals, therefore a Nokia Alliance Internet Service Company Limited was formed aiming fundamentally the Chinese consumers.As Mr. Lifeng said that they are happy to fall in manus with Nokia because with Nokia ‘s expertness, cognition and experience they can hold a large consumer market to ease.
GOOGLE ‘s JOINT VENTURE AND STRATEGIC ALLIANCE:
One of the chief success factors of Google to go a multi million dollar concern is they form joint ventures and strategic confederations with one of the top companies in the market. As in the start Google was a strictly internet hunt engineering corporation. Google usage to do net incomes by advertisement through its Ad-Words programme. As to derive a competitory advantage and to derive a larger market portion from there direct rivals such as Microsoft, Google started to construct up strategic confederations and joint ventures with the other companies. Some of the chief confederations of Google are,
GOOGLE AND YAHOO JAPAN.
Google announced its partnership with Yahoo Japan on November 18 2002. Google will supply Yahoo Japan users with web broad hunt which will include more than 95 million Nipponese translated web pages. Google had besides launched its Nipponese version of Ad-Words which will assist Google to bring forth extra net incomes by assisting Nipponese advertizers to acquire new clients on high rate of return. Google will supply its award winning hunt services to the biggest Nipponese sites which include yahoo Japan, Excite Japan, All about Japan etc. which will assist Google to derive excess piece of the market.
GOOGLE AND APPLE.
As seen so far one of the biggest confederations which were in negotiations for a piece now is Google and Apple. As Google seeking to diversify its merchandise and services into the new market such as nomadic markets etc, Google joined custodies with Apple another multi million dollar house to derive competitory advantage on their chief challengers Microsoft. Google applications will now be seen in the latest Apple computing machines and Google will besides supply platform to Apple I phone to run its applications. This strategic confederation has made worried non merely Microsoft but other industries.
Google is a package based company which is endangering Microsoft package industries such as Office, Explorer etc and Apple which is a hardware based company endangering Microsoft runing System concern. As the two companies grew near together CEO of Google Eric Schmidt is named one of the board of managers which will assist maintain the relationship stronger and comfortable. The chief ground for their confederation is to cut the market portion of the Microsoft.
( www.apple.com )
AOL AND GOOGLE:
One of the chief successful confederations was Google and AOL. Google in 2002 formed an confederation with AOL a multi twelvemonth understanding that will do Google popular hunt and web listings available on American online trade names. This will assist Google to make AOL extended consumer audience. As Google is a universe taking hunt engine it will supply AOL consumers a broad scope of services what Google offers and they will hold entree to Google ‘s broad library of paperss. In 2003 Google and AOL expanded their partnership with adding some new characteristics which will give Google an entree within the hunt countries of AOL service in UK, Netherlands, France, Germany Etc. So far they have extended their confederation three times.
( www.aol.com/google-alliance )
NOKIA AND GOOGLE PARTNERSHIP.
Nokia and Google brought a new dimension to the market by fall ining custodies. Nokia announced that Google hunt engine will be integrated with Nokia hunt applications. The integrating will get down by the selected merchandises of Nokia like N96, N78 and Nokia 6210. The Google will do itself available through Nokia platform in over 100 states functioning Mobile proprietors talking more than 40 linguistic communications.
Adding Google to Nokia will supply Nokia users a better manner of seeking the web through their phone. The partnership will ofcourse no uncertainty convey a huge success in Google ‘s market domination scheme and will besides increase its market portion. ( www.mobilesearch.nokia.com )
CHINA MOBILE-GOOGLE.
China Mobile is the taking nomadic telecommunication bearers, announced its confederation with Google which is another large strategic confederation in history. The whole thought is to supply the Chinese consumers high quality search through Google on their phones from which they can seek cyberspace and its huge content including athleticss channels, intelligence channels etc. This will supply China Mobile consumers more value for money and ofcourse great service and one of the greatest and strongest hunt engine right in their thenar. Even though Chinas economic system is one of the strongest turning economic systems and Google late confronting a biggest menace over at that place and thought of drawing out its concerns from China.
“ Google, the universe ‘s top hunt engine, said it may close its Chinese-language google.cn web site and offices in China after a cyber-attack originating from China that besides targeted other houses and human rights candidates utilizing its Gmail service ” .
( hypertext transfer protocol: //www.reuters.com/article/idUSTRE60C1TR20100114 )
Menace
NOKIA
Nokia like all other companies is non menace cogent evidence and faces terrible challenge in the market.Nokia ‘s serious menace in 2007 was the launch of its celebrated rivals Iphone by Apple. Apple brought a revolution in the market which helped them hold on bulk of Nokia ‘s clients due to its functionality, fundamentally they focussed on the Product Development if compared to Ansoff Matrix see ( appendix Fig A ) .
( hypertext transfer protocol: //arstechnica.com/business/news/2009/11/smartphones-beat-recession-nokia-still-on-top.ars )
Since the Product Life span is truly short they ever have to concentrate on the approaching engineerings and have to maintain themselves focused.Recession caused a large job for Nokia and its rivals such as Apple and Blackberry but through the launch of their N97 series it came out quicker so the remainder. Competition from Asiatic market is a large menace as good. In 2008 Nokia had to cover with it ‘s replica mobile from its rivals supplying the same functionality against its expensive Arte and N96 handset being sold for less so half monetary value from its rivals.
( hypertext transfer protocol: //www.mobiletoday.co.uk/Nokia_Arte_fakes_from_counterfeit_manufacturers.html )
Bing a company like Nokia needs to maintain gait with the upcoming and turning engineering but hotfooting excessively far can do problem every bit good, and that ‘s what precisely happened to Nokia in 2003-2005 because they produced such technological phone of which the market was n’t ready so they had to alter their scheme and construct phone harmonizing to the demand of the consumers.Currently Nokia is confronting challenges from large companies such as AT & A ; T,3COM CNN e.t.c.They are viing with Nokia twenty-four hours and dark to busy its market portion.Most of the companies are concentrating on the radio engineerings, seeking to do nomadic phone merely non a agency of having calls but fundamentally a 1 in all appliance for all operations.Nokia holding Symbian has a great advantage towards these menaces because Symbian specializes in these wireless platform engineerings.Nokia should concentrate on cardinal issues such as making a alone platform and applications unique to them.They should supply applications alone to them with its exclusivity.
In this concentrated market of today competition and rivals arise with every wink of eyes, likewise in the instance of Google there are a batch of things go oning which are doing Google terrible incubus. The amalgamation of Yahoo and Microsoft which is in the air is the biggest one, the site called Wikipedia is another menace being an online encyclopedia and supplying user the entree to upload and redact posted paperss doing it wholly client demands oriented pulling more so 30,000 voluntaries who made more so 50,000 edits ( beginning: hypertext transfer protocol: //www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/2791994/Google-Seven-potential-threats-to-its-dominance.html )
Another advanced rival is Blinkx.com which claims to be the largest single beginning for the web picture giving direct competition to YouTube because of its technique of non trusting on text but of its forte which can listen to what is being said and search consequences on the footing of that alternatively of typing in hunt words and acquiring the consequences, its already provides its services to large hunt engines for e.g. Msn and Ask.com. Another menace which Google may confront in the close hereafter is a really strong competition for their Android Phones where it will vie with large names as Nokia, Sony Ericson and Apple. In China Google faced it fraudulence with Chinese web sites such as goojje.com and Toutubecn.com. Microsoft besides came up with its Windows 7 Touch Screen Phone which is the measure of Microsoft of acquiring into Mobile market non as a supplier of its package but alternatively of cell phones so in this another rival entered the market to vie with Google ‘s Android Phones
Google in modern yearss has developed its concerns so quickly that now it has become menace to a tonss of other companies specially Microsoft. Google No uncertainty has out smarten them and other industries in all facets and started to take market pieces from Microsoft which was one time considered strictly dominant in their market. Google with their package applications became a menace for Microsoft office and cyberspace adventurer and they are besides diversifying into other concerns with joint ventures, strategic confederations, amalgamations and acquisitions. For Companies geting new concerns and diversifying is a hazardous option but No uncertainty Google has hired some great heads in their company. They have diversified into new concerns so smartly that in approaching recent old ages companies like Microsoft will no longer endanger them. For e.g there acquisition of Youtube, there confederations with one of the biggest companies like Apple, Yahoo, Motorolla, Aol and many more. Equally far as we see Google started ruling the market and shortly will be a biggest menace to giants like Microsoft.
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hypertext transfer protocol: //www.nokia.com/press/press-releases/showpressrelease? newsid=1360014
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INTERNET SITES
www.wikipedia.org/google.
www.google.com/aboutgoogle.
www.nokia.com
www.siemens.com
hypertext transfer protocol: //www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/2791994/Google-Seven-potential-threats-to-its-dominance.html
( hypertext transfer protocol: //www.mobiletoday.co.uk/Nokia_Arte_fakes_from_counterfeit_manufacturers.html )
( hypertext transfer protocol: //arstechnica.com/business/news/2009/11/smartphones-beat-recession-nokia-still-on-top.ars )
( hypertext transfer protocol: //www.reuters.com/article/idUSTRE60C1TR20100114 )
( www.mobilesearch.nokia.com )
www.wikipedia.org/nokia.
hypertext transfer protocol: //tutor2u.net/business/strategy/ansoff_matrix.htm
