Ericsson Strategic Analysis Paper

Topics: Mobile phone, GSM, Mobile network operator Pages: 80 (23737 words) Published: June 30, 2011
Strategic Analysis Report

Student’s Name

Prepared for BUSI 583, Dr. Orlando Griego – Azusa Pacific University


Introduction and Executive SummaryPage 1

Section 1 – Company OverviewPage 2

Section 2 – Vision/Mission AnalysisPage 6

Section 3 – Product/Service AnalysisPage 8

Section 4 – Market/Economic AnalysisPage 12

Section 5 – Marketing AnalysisPage 20

Section 6 – Financial PlanPage 26

Section 7 – Relational PerspectivePage 44

Summary & ConclusionPage 53

RecommendationsPage 57

ReferencesPage 60

Executive Summary and Introduction

The purpose of this paper is to analyze the global telecommunications giant Ericsson and make recommendation as to how Ericsson can establish a stronger position by utilizing its strength to pursue market opportunities and how to address weaknesses and threats that we have identified.  In the process, we will look at the company background, perform a vision and mission analysis, address its current and future products, look at the market and economy, evaluate its marketing strategies, analyze its financial situation, and review the company's internal and external relationships.  In the end we will conclude with a summary of our findings and make recommendations how to improve Ericsson’s current position in the market. As source of information, our team used the Internet for topics related to news, finances, industry makeup of Ericsson.  We were also able to use internal, non-confidential information regarding the company and the industry.  To research sensitive information used in the Marketing Analalysis section, we conducted interviews with senior executives at Ericsson. We would especially like to acknowledge and thank Mr. Roger Walland, Senior Vice President of Network Sales in the West Region of the United States and Mr Steven Smith, Senior Director of Network Sales in Los Angeles/San Diego/Las Vegas for their precious time and insights.  Mr. Walland has spent 15 years with British Telecom and the past 6 years with Ericsson.  Mr. Smith has spent over 10 years with Ericsson working mostly in China and the U.K. 

We hope to address and analyize critical issues surrounding Ericsson and the turbulent telecommunications industry.  With the information we have researched, our goal is to offer recommendations that may help Ericsson stay the world leader in mobile systems

1. Company Overview

1.1 Company Background & History

Ericsson is a world-leading supplier in the telecommunications and data communications industry, offering advanced communications solutions for mobile and fixed networks as well as consumer products. Ericsson is a total solutions supplier for all customer segments: network operators and service providers, enterprises, and consumers. Ericsson has more than 71,000 employees, representation in 140 countries, and clearly the world’s largest consumer base in the telecommunications field (Ericsson 2002). Ericsson is the largest supplier of mobile systems in the world. The world’s ten largest mobile operators are among Ericsson’s customers and approximately 40% of all mobile calls are made through Ericsson systems. Ericsson provides total solutions covering everything from systems and applications to services and core technology for mobile handsets (Ericsson 2002).

The market Ericsson addresses is changing rapidly and is characterized by specific key trends: Convergence of industries, technologies, and services. The telecom and datacom industries are coming together as are the computer and media industries. Wireless is spreading into all aspects of communications in the future and represents a fundamental change that is transforming the way we live, work, and play.

On April 1, 1876, mechanic Lars Magnus Ericsson opened a workshop to repair telegraph instruments in Stockholm, Sweden. A colleague named Carl Johan Andersson entered into a...
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