Sunday, March 6, 2016

Nokia s acquisition of Arun mixed cautious optimism

Yes, you read that right, Nokia is back! Once again into the focus of media attention.

Nokia will be selling part of its mobile phone business and patents to Microsoft, Nokia's business from the former main 2C transition to 2B, that many readers thought Nokia closed down.

But it's not. In fact, after you sell your mobile phone business, Nokia and the network equipment business map business unit (famous Here map) and r (for external licensing Nokia's patent). And, according to its earnings report, 2014, beginning in the fourth quarter, Nokia has turned losses into profits.

And this time, Nokia sky-high Alcatel-Lucent news, merged to become the world's biggest supplier of mobile phone network equipment (mobile phone networking equipment segments), back into the Media Center, became the focus of attention. For Nokia, it should be for, after all, for the old Nokia, especially in mobile Nokia, era of the Kingdom, which, often in the media spotlight.

Original combination of two weak companies, merger prospects are not promising. In the second tier of Nokia and Alcatel-Lucent, through transformation and hold together for warmth in response to challenges through the integration back to the first echelon. Despite Ericsson and Huawei were suppressed and rivals such as Cisco to catch up. Because Nokia's growth, Enterprise Development decided by genes, the author of the Merge transformation is cautiously optimistic.

From the factory to King of the mobile phone, all the growth in our genes

In 1865, Nokia was born in Finland the Tammerkoski River.

In 1868, the Nokianvirta River established the second plant (Nokia from Nokianvirta formation).

During this period, Nokia's main business for the wood processing and papermaking. Yes, Yes, the main business from our well known technology company Nokia in intervals of 108,000.

The beginning of 20th century, Nokia has begun to integrate, and in Finland the plastic factory (Finland Plastic Works) company merged. In the next few years, Nokia has been engaged in the pulp and paper, plastics, as well as radios, generators and other traditional manufacturing supplies. During this integration only small companies + small business integration, of sorts, but, after all, is the traditional type of small companies, also became a remarkable history of Nokia's node.

Turning point or milestone events in the 1960 of the 20th century, when Nokia began to transition and started manufacturing radios for military and commercial users, and technology accumulation and reserve for the following Nokia's development laid.

In 1982, Nokia has developed a mobile phone that can be carried in a car or on her back, routed catty "Leviathan" (this mobile not that mobile phones, and today's smartphones thus far, but to some extent can be seen as a father). From here until the late 80, Nokia has also been lost, did not focus on the field of communication, even blind expansion of continuously in a variety of areas, leads to business are too scattered, there have been serious losses. Experienced blind expansion and the trap of growth stage, perhaps for the further development and integration into impact factors.

In 1992, the leader Nokia's Jorma Ollima communications as Nokia's core business, making Nokia's business focus, and gradually absorbed, Nokia has grown to become a global leader in mobile communications. On the way as the world's leader in mobile communications, Nokia was first to complete his transformation, transformed from a traditional business for technology-driven companies, by a complex business enterprises focus on main business and technology and business model transformation of reversing the sort of its main rivals Motorola, successfully squeezed the industry leadership position. In retrospect appears to be smooth all the way, but in practice many nodes and Nokia are almost flunked, but Nokia has survived, and therefore to a certain extent acquired immunity.

Cell phones, lost cell phone, when to start the lessons.

Nokia in the cell phone market, can catch up with and surpass the main rivals Motorola and Ericsson companies, mainly due to the light, there is no historical burden, not conservative, through creative subversion of Motorola in the era of analog mobile communications to develop business models and rules. Motorola because of the fixed thinking and conservative thinking, or not willing to forgo short-term vested interests, so much so that when in the early development of digital mobile phones, still voice quality as the core, functions and slow innovation in design. But thanks to Nokia on the mobile phone functions, experience and gradually look to win consumers. And Nokia has maintained a quick and flexible, making Nokia the King of the mobile phone.

From a carpentry factory, King of the growth of the world mobile phone, said Nokia's transformation of the blind.

Though in the story we know, Nokia mobile phones, lost cell phone. Nokia caught the tide of digital mobile phone era, but in the era of smart-phone fell down the Hill.

Until 2013, Nokia most of its mobile phone business and some patent licenses sold to Microsoft. At this point, will lead Nokia to glory and fall silence mobile phones businesses pause. Disney iPhone plus case

But saying you know, Nokia should not fall for the same reason. Therefore, in the past, the transformation of Nokia experience and success for this merged with Alcatel-Lucent provides valuable lessons, can avoid many detours and bumpy road in the future.

But optimism optimistic, caution is necessary. Is the so-called plan to prepare for the worst, to make the best possible efforts, is optimistic about the results.

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Integration will be the merger of Nokia and Arlong the first required course

Nokia and Arlong merged with more than 110,000 employees, a large number. In the three years prior to Nokia through the 25,000 job cuts that made the company back. Distribution even after the merger integration of employees is laid off is not a simple problem, but had to face. But Nokia has undergone mergers (such as stories and Siemens) and redundancy (Nokia's cuts).

And not only that, the complicated merger situation. 2006, Nokia communications equipment by Nokia and Siemens joint venture and into, and is in 2006 Arun by Alcatel, and Lucent merged and into; 2009, Nokia Siemens for into United States market also tries to acquisition had North electric of CDMA business, and North electric of WCDMA business precisely on sold had Arun; 2011, Nokia Siemens previously to into United States market and acquisition has Motorola of system equipment of wireless sector...... Integration of the two companies appear to be messy, complicated.

After the merger, the company products within the business lines overlap and integration, governance, cultural integration more difficult. To revival after the merger, the new company must Wade "integration" of the River, and do the required courses. Even pain in the process, it must be bound.

For new company out of time must be fast

Merging of the two companies is facing a crisis management mode of communication equipment industry, hoping for change towards strong through weak joint. Merge after the hugs, the new company's market share is greater than the original, and become one of the top three in the market, at least for the time being able to compete with Ericsson and Huawei, it seems, at least much better than respectively for the two companies.

But in the long run, ultimately depends on the combined company can transition to succeed, if you can find new sources of growth. Future lies in a new generation of mobile communication technology (5G), cloud computing, big data, mobile Internet, Internet, artificial intelligence and other fields. New Nokia must quickly consolidate and seek transformation, slower technical layout of the point in time in the future before giving up.

Sold Here map, focus or a medicine

For Nokia and Arlong, facing internal integration after the merger, while facing rival-bashing and chasing, also have to face the future and challenges of transition, any one who has carelessly, revival will ring hollow.

At this stage, the focus on core business is crucial, focused and professional will be a panacea for helping new Nokia back on track. Therefore, the vibe sold Here for maps, Nokia really should be put on the agenda as soon as possible, after all, in the time of Sesame and watermelon can not have both, catch the big and free the small is had to, was a wise choice.

To generate revenue, more research and development

Can be expanded after the merger cost-cutting on both sides, particularly with regard to investment costs, more money will focus on core business and new business development. After the merger, but also to reduce the cost of marketing and communication, and higher marketing input-output ratio, to get more new development opportunities.

Merger of the two giants, difficulty is obvious, but also in the crucial period of transition, and both of them are second-tier, weak joint has been controversial, and the underdog. Although it is mixed, but based on Nokia's transformation experience, Nokia, UPS and downs of history, and the tough, we were intent on Nokia and Alcatel-Lucent merge more optimistic, through acquisitions and disposals, rainy day, could power new Nokia revival. Disney phone case

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