Microsoft and Nokia have declared that they will forge a long-term strategic alliance in order to challenge their competitors in the mobile devices industry. At a news conference, President and CEO of Nokia, Mr. Stephen Elop, and Steve Ballmer, CEO of Microsoft, discussed their high level new strategy.

The alliance will be much deeper and more integrated than had it been with Android and Google. According to analysts, Microsoft’s strength will compliment Nokia’s weaknesses and Nokia’s strength will compliment Microsoft’s weaknesses. They will keep their options open if in any circumstance this plan does not materialize. They will jointly make it possible to increase the market share of their smart phones and mobile operating systems.

Nokia will offer great products, application store, maps, and assets of location to this alliance. On the other hand, Microsoft will offer Windows Phone 7 and the mobile brands which consumer desire, similar to Xbox Live, Bing and Office. Nokia will use Windows Phone 7 as their primary smart phone strategy. They will extend price points, geographies and market segments. They think this will be better for Nokia. It will give them scope to concentrate in their investments where they can differentiate best. It will give them a quicker path for the US market and it will give them a wide opportunity for taking advantage of their assets which are location based.