Strategic Alliances, Collaboration and Joint Ventures Case Study

Nokia and Siemens: Creating a Telecom Alliance

OR

Abstract:
Nokia, the world’s largest manufacturer of mobile phones and Siemens Information and Communications, the information and communication divisions of Siemens AG were to merge their mobile and fixed-line phone network equipment business in order to create one of the world’s largest network firms. On 19th June 2006 Nokia and Siemens had announced their intention to merge the Network Business Group of Nokia and the carrier related operations of Siemens into a new company, which was named as Nokia Siemens Networks. The 50-50 joint venture was to be based in Nokia’s home country of Finland. It was headed by Simon Beresford-Wylie; he was to run the company. Nokia Siemens Networks had predicted annual sales of US$20.2 billion. The joint venture positioned itself to develop and implement the revenue generating and cost saving products and services, which also expected to be benefited by their global reach. In this regard they had also planned to save up to US$2.75 billion by the year 2010. They were quite hopeful of creating one of the world best Research and Development teams, which would have the ability and competency to provide the innovative skill to produce the next generation fixed and mobile product platform and services.

Pedagogical Objectives:

• To understand the generic motives of strategic alliance
• To discuss how to develop strategy for successful JV with reference to Nokia and Siemens
• To analyse critical issues of JV.

Keywords : Mergers,Acquisitions,Alliances Case Study;Nokia; Siemens; Information and communication; Mobile phone; Fixed line phone; Network equipment; Carrier related; Cost saving; Innovative skill; Competency; Conglomerate; Information and Communication Mobile (ICM); Siemens Business Service (SBS); Join forces; Third generation wireless network

Contents : 
Inrtoduction
Company Background
Global Mobile Phone Industy: A Snapshot
Nokia, Siemens: Join Forces
Expected Synergies
Financial Report Of Siemens Ag In 2005
Siemens’s Employees Worldwide
Nokia’s Financial Statement From 2003-2005
Mobile Phone Penetration Percentages