Saturday, February 12, 2011

Nokia/Microsoft Merger

There has been a lot of talk about a merger between Nokia and Microsoft which could potentially be a “mega technology merger”. Why is this a problem? A merger would mean that the two major companies would come together to create a monopoly and they would have the ability to control and manipulate prices. Since the two corporations would make one super system out of a phone, this phone would potentially have the power to make other phones like the Android or the iPhone lose their appeal and their customers. The merger of the companies could take on a Wal-Mart effect. Wal-Mart is considered the biggest monopoly because it completely obliterated its competition stores in every town that it came to. Wal-Mart put a ton of family business and local stores out of business by making their products cheap for customers. However, the inexpensive cost comes with a low quality cost. Once a company takes over like that it controls the consumers and leaves them with only one option and that is to go to their store to purchase goods. Depending on the popularity of the phone, that will be the outcome of the merger; will decide if Nokia and Microsoft will push out the competition. They are also talking about adding a “Xbox product line” for gamers. They are playing into all the consumers wants and needs in a phone in order to make their product the most desirable.

http://news.cnet.com/8301-30686_3-20031537-266.html

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