Nokia India explains how communication prevented sales disruption when the Nokia/Microsoft deal was announced

Usually a major sale or merger means at least a few quarters of worse sales as uncertainty cause reduced confidence in the market.

Speaking to the Times of India, Nokia India explained how they avoided the issue when the deal between Microsoft and Nokia for Microsoft to buy Nokia’s handset division was announced on the 2nd September.

Himanshu Chakravarti, chief executive of The Mobile Store, India’s largest modern trade mobile phone seller, said he heard about the deal in the morning, and soon after received a call from the top management of Nokia India to explain to him the contours of the deal and how supply won’t be affected at all. "I was satisfied," he said.

P Balaji, Nokia’s India head said Nokia spent the days after the deals reaching out to its partners. ‘We reached out to our partners — over 400 in distribution and close to 5,000 partners — and explained the details of the deal and how it was only for the better," Balaji said, explaining how the company was able to allay concerns and ensure handset sales weren’t hurt by the news.

"There was no mixing up, and no, thankfully no confusion."

Microsoft and Nokia did the same with Nokia’s employees.

"(Nokia’s) Stephen Elop and (Microsoft’s) Steve Ballmer’s communication on how it was a win-win deal for both the companies and how we all had to continue focusing on our work was very clear. We were told the exact position in as many words and given a set of dos and don’ts," Balaji said.

“We were told that the likely regulatory approvals would come in the following quarters into 2014, and among the ‘don’ts’, we had been asked to not start to think too much ahead of the time and to continue working as two separate units until the approvals came in," he said.

Vipul Mehrotra, Nokia’s director and head of smart devices for India, Middle East and Africa, said "In the next six weeks we were able to ensure that there was no loss of sales."

The deal is expected to close in Q1 2014, with a recent obstacle being removed when the  Delhi High Court last week allowed Nokia to sell its Chennai factory to Microsoft, asking income-tax authorities to revoke the freeze on the handset maker’s assets.

Thanks Tom for the tip.

Comments