Sony Ericsson Mobile Communications AB is a joint venture established on October 1, 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to manufacture mobile phones. The reason for this venture is to combine Sony’s consumer electronics expertise with Ericsson’s technological knowledge in the communications sector. Bert Nordberg is the president of the company since October, 2009. Sir Howard Stringer, CEO and President, Sony Corporation, is chairman of the board
The company’s global management is based in Hammersmith in London, United Kingdom, and it has research & development teams in Lund, Sweden; Tokyo, Japan; Mexico City, Mexico; Beijing, China and Redwood Shores, United States. By 2009, it was the fourth-largest mobile phone manufacturer in the world after Nokia, Samsung and LG. The sales of products largely increased due to the launch of the adaptation of Sony’s popular Walkman and Cyber-shot series. In 2010, its market share had dropped to sixth place behind Research in Motion and Apple.
It was growing but in first quarter of 2008 its market share dropped from 9.4% to 7.9%, profits fall significantly by 43% and sales by 8% despite favorable conditions that the handset market was expected to grow. In second quarter it saw net profit crash by 97% and decided that it would cut 2,000 jobs, leading to wide fear that Sony Ericsson is on the verge of decline along with its struggling rival, Motorola. In third quarter the profits were much on the same level, however November and December saw increased profits along with new models being released such as the C905 being one of the top sellers across the United Kingdom. In 2009 it sold 57.1 million units and again its market share decreased by 3%, from 7.9% to 4.9%.
The Essay on Global Strategy of Sony Ericsson
In 2001, Sony Ericsson is established by the Japanese company Sony (a consumer electronics corporation) as a fifty-fifty joint venture with the Swedish telecommunications company Ericsson (a mobile communications infrastructure and systems business) which offers mobile phones, accessories and applications. Before the merger, its provides expertise in mobile communication, after the merger, its ...
Market share:
Market share is the percentage or proportion of the total market that is served by a company or business. It can be measured by dividing the company’s sales volume by total units in that market or by dividing the company’s sales revenue from total sales revenue available in that market. Increasing market sharer is one of the most important purposes of the business because market share is positively related with profitability. So companies try to increase their market share.
Reasons of decreasing market share:
Market share of Sony Ericsson decreased because their;
Design styles has been same for a long time so lot of people feel that it all looks same .
It adopted the copy paste strategy, means firstly company earned lot of profit by making minor changes in their existing hardware and software but latter this strategy cut their large market share. It issued 40 shares handsets from 2005 to now and all mobiles were very similar to at least one or more of the existing mobiles
Mobile suddenly switched off and some times middle key often stop working
Mobile stop working because the software got crushed after repair, its speed got slow in processing and week in signal receiving
Some mobiles display becomes blank and they reject to accept such mobiles however product had guaranty period
Their mobiles were poorly manufactured some of them start with problems such as unable to read the memory card, charging problem, hanging etc.
Service center does not have any feed back center
Battery and keypad does not work properly. Its battery timing was very short and its keypad losses colors.
The Research paper on What Factors Affect The Demand Of Mobile Telephone Products?
This project is about analysing the factors affecting the demand of mobile telephone products. The case study that will be included is the current state of the UK mobile telecommunications market. The operators to be examined are the four major operators in the UK: BTCellnet, One2one, Orange and Vodafone. The case study for this project will be based on the current state of the UK mobile ...
It losses focus on quality production
Solution and Ways to increase market share:
Eliminate all the problems and defects from their handsets
Produce quality product which make sense to people that they are making good use of their money
Make continuous innovations in your product, use latest technology, forecast customers’ needs
Reduce your cost of production so that customers can be attracted. Best quality at reduced cost can increase your customers and also attract customers of competitors.
They should include lunar calendar with international calendars
The names in contact list should have various categories that can be used as address book
There should be search function in phone log (calls & contacts)
Try to attract new customers as well as keep existing customers when you provide the best quality at lower cost you can create new customers and also you can steal your competitors’ market share.
Ensure your customers that your product is money saving if successfully prove it. It will be helpful in building market share.
You must know about your customers’ choices, traditions etc. and try to bring change in product in keeping mind your customers’ choices and preferences.
Provide best quality at lower cost to attract new customers and retain existing customers.
