Nokia and Siemens Mergence
Using different techniques in advertising is one of the most commonly used principles by companies which intend to capture a wider market base. Apparently, having an attractive advertisement module can provide greater prospects in achieving higher returns of profit margin acquisition. The article in references is the news about Nokia and Siemens mergence. The two companies are practically well known in the industry of telecommunications and networking respectively. The article which was published by BBC was actually about the technical aspects of the integration.
Basically, the mergence comprised of the equally established shares for both companies which agreed to have 50% each for the said integration structure. This will allow the two companies to have equal rights and profit acquisition for whatever transaction deals to be implemented in the future. Due to the partnership, experts were estimating for the companies to acquire at least 16 Billion Euros by the end of 2010. The basic reason for the merging of the Nokia and Siemens was extracted from the concept of increasing the Nokia’s capacity towards networking capabilities.
Primarily, Nokia is a self sustaining company and in fact a leader in the telecommunication industry particularly in the division of mobile phones. However, this status is so demanding that it needed to invest more on networking facilities due to the increasing demands of mobile phone owners when it comes to portable and networked communication procedures. The reported deal was actually in terms of infrastructure and not about cell phone handsets (BBC 1).
According to the article, one more offset for the mergence is to counter balance the possible influence of the merger of Alcatel and Lucent Technologies which primarily poses some levels of competition against Nokia. On a personal perspective, I have always positioned the company Nokia to be the pioneer in global mobile phone developments. Even though I am aware that emerging companies such as Motorola and Sony Ericsson are fast catching up in terms of innovation, I can still see Nokia to be at the forefront at least at the commercial segment of the race.
According to Business Week, Nokia captured at least 40% of the overall global market share when it comes to mobile phone sales. This actual figure primarily makes the organization prominent and well performing when it comes to personal analysis. Given my impression of Nokia, the article somehow provided me another perspective towards the company’s actual development. Because of the mergence, I realized that it is not really independent when it comes to delegating success in the market. The story repositioned my thinking that there is no real company which can stand on its own and operate based solely on its traditional business principle.
Nokia may seem to be a very good company in some aspects but actually it will still need some affiliations if it wants to diversify its market share, which is the case in partnering with Siemens for network development since Nokia can’t emerge in the IT market without a reliable network backbone. This prompted me to think that Nokia still needs to undergo large scale affiliations in order to sustain its development. Considering the article about the mergence of Nokia with Siemens, it seems that the news is more of a publication advertisement which promotes awareness.
The people who are going to read the news will definitely acquire the fact that Nokia is actually undertaking plans to improve its services to the consumers. The article also intends to impart knowledge since it precisely informs the readers that the merger is not based on handset partnership but more on infrastructure. This is a good approach since Siemens also has its own line up of mobile phones and that the consumers my just expect to see what kinds of models the merger will offer to the market.