Sony Ericsson

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  • Topic: Mobile phone, Sony Ericsson, Ericsson
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  • Published : January 10, 2013
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Sony Ericsson SWOT Analysis

Strength
Diversity among products.
Sony as a brand name.

Weakness
Lack in understanding Customer Preferences
Less technology advancement
Lack of user centered designs.
Lack of Brand awareness globally

Opportunities
Mobile phones market in developing
High % of young market
Strong Customer demand for innovative product
High Disposable income in emerging markets.
Network capabilities and low tariff of service providers.

Threats
Landline penetration and introduction of Sky phones for rural areas. Intense competition.
Bargaining power of consumers.

History of Sony Ericsson as a company

EXECUTIVE SUMMARY
Sony Ericsson is a joint venture of Sony and Ericsson which take place in October 1st, 2001. They starts work together because they wants to become the communication entertainment brand, by inspiring people to do more than just communicate, and enabling everyone to create and participate in entertainment experiences. Experiences that blur the lines between communication and entertainment. Sony Ericsson's main head office is in London.

In this report we cover topics like main objective behind this joint venture, main strategies behind this joint venture, what motivates them to make this joint venture, why this joint venture was not as much successful, what problems they faced in the start of this joint venture and how they could make this successful by considering strategies which we describe.

INTRODUCTION
Sony Ericsson got in to alliance on 1st October 2001 and the main objective of this alliance was to be the world's leading position in mobile phones.

SONY
In 1946 Sony Corporation were founded by Masaru Ibuka and Akio Morita. G-TYPE recorder (Tape player or recorder) was the first hardware device created by Ibuka and Morita in 1950. From Western Electric they earned licensing rights to transistor. Sony released first pocket transistor radio in 1957. There engineer's completed cathode-ray tube in October 15, 1967 that helps them in video innovation. They introduced Trinitron television for picture quality and for the penetration in the global market they design this in 1968.

Its Japanese multinational company, and it's one of the leading manufacturers of electronics, products for the consumer and professional markets. Basically it is a leading manufacturer of audio, video, game, communications and information technology products for the consumer and professional markets. Sony is uniquely positioned to be a leading personal broadband entertainment company in the world.

ERICSSON
Ericsson was founded in 1876 by Lars Magnus. He started making phones with the potential of improvements in technology. Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership, like they are providing innovative solutions in more than 140 countries. Ericsson is the only company in the world offering systems for all major mobile communication standards, actively promoting standardization and open systems.

REASONS FOR JOINT VENTURE
The main reason for the venture was to integrate Sony's consumer electronics expertise with Ericsson's technological knowledge in the communications sector. Ericsson was the buying chips from single source that was Philips. A fire erupted causing a huge loose at Philips, due to which Philips was unable to provide the chips to Ericsson. Ericsson faced a huge loss due to this incident. There were rumors that Ericsson might sale its handset division but it found a way to join hands with Sony which could help it to recover. The Vision of the Company is:

“To become the communication entertainment brand, by inspiring people to do more than just communicate, and enabling everyone to create and participate in entertainment experiences. Experiences that blur the lines between communication and entertainment.”

* Communication
* They have developed...
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