Research On Strategic Merger Integration Of The Microsoft Company M&A Nokia

The value creation of Merger&Acquisition(M&A)is not born in the process of trade, but is created on the process of resources optimization disposition(ROD)after the trade, only in this way can the resources been used more effective. So, Post-Mergers Integration(PMI)is the base of effective resources disposition, the key of whether can we create coordinating value. September32013, the Microsoft Company announced that it would pay EUR5.44billion (USD7.17billion) to purchase substantially all of Nokia’s Devices&Services business, license Nokia’s patents, which caused a huge astonish in the industry. As a milestone event in the telecommunication device industry, this purchase would change the competition pattern of the mobile device industry. In this dissertation, we analyze the motivation of this purchase, and, study the integration after the purchase including its contents and strategies.Firstly, in the introduction section, we introduce the main body, i.e., Microsoft and Nokia, including their background and current situation. We also present the magnificent meaning of integration based on present research status. After this, we formulate the problem:in order to achieve the predicted aim, how does the integration scheme work after the purchase can result in an M&A synergy. We introduce related conceptions in the field of purchase and integration, and then, we analyze corresponding characteristics of the purchase scheme, finally, we present related theory. Secondly, we analyze the competition surrounding that the Microsoft Company was facing from the angle of completion strategy; and we show some problems the Microsoft Company had in its current strategy. Using tools such as PEST, SWOT and Michael Porter’s Five Forces Model, we analyze the affects, challenges and opportunities of the Microsoft’s WP service coming from the macroeconomic environment and the mobile phone industry environment, which forms a theoretic basic for the afterward study. Once more, we select some identical direction to study:the company’s mission, goals, and overall strategies of both enterprises and so on. And then, we give some solutions to the integration strategies in the aspects of service procedure, human resources optimization, the companies’culture blending as well as the product and market structure. Finally, based on the former study, considering market situation, we conclude the inspiration of this purchase and integration for domestic industry. Smart mobile device has been the most profitable filed in mobile industry. The completion in the patents has been the best weapon to achieve success in Android, IOS and Windows Phone. Purchase and integration has been the trend to optimize the whole mobile industry.