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Company Overview

It was founded on October 1, 2001 as a joint venture between Sony and the Swedish telecommunications company Ericsson.

Sony Mobile Communications has research and development facilities in Lund, Sweden; Tokyo, Japan; Beijing, China; and Silicon Valley, United States.

In 2009, it was the fourth-largest mobile phone manufacturer in the world (after Nokia, Samsung and LG). By 2010, its market share had fallen to sixth place.

Ericsson had decided to obtain chips for its phones from a single sourcea Philips facility in New Mexico. In March 2000, a fire at the Philips factory contaminated the sterile facility. Philips assured Ericsson and Nokia (their other major customer) that production would be delayed for no more than a week. When it became clear that production would actually be compromised for months, Ericsson was faced with a serious shortage.
Ericsson, which had been in the mobile phone market for decades, and was the world's third largest cellular telephone handset maker, was struggling with huge losses.

Sony was a marginal player in the worldwide mobile phone market with a share of less than 1 percent in 2000. By August 2001, the two companies had finalized the terms of the merger announced in April. The company was to have an initial workforce of 3,500 employees.

Sony Ericsson Profile

Industry Founded Telecommunications October 1, 2001 (as Sony Ericsson)

Area served Key people

Hammersmith, London, United Kingdom

Worldwide Kunimasa Suzuki (President and CEO)

Bob Ishida (EVP and Deputy CEO)

Revenue Operating income Profit 5.212 billion (2011) 206 million (2011) 247 million (2011)

Parent Website

7,500 (as of December 2010)

Sony Corporation

Mobile phones

Mobile music devices


Wireless voice devices

Wireless systems

To Become the communication Entertainment Brand.

Defining a primary task

Assessing core competency

Determining order winner and qualifiers

Positioning the firms

Defining a Primary Task

The main and primary task of Sony Ericsson Mobile Communication is to

make new technology-based mobile phones, smart phones, walkman, android

etc. along with mobile applications and mobile games and delivering them to the people.

Assessing Core Competency

Sony Ericssons core competency is Human Resources, Leadership in technological innovation, Innovation in partnership etc.

Determining Order Qualifiers and Order Winner

Order Qualifiers: New technology-based mobile phones, smart phones, walkman, android etc are the characteristics of Sony Ericsson's products that qualify these products to be purchased by the customers. Order Winner: t is the characteristics of a product of Sony Ericsson that wins orders in the marketplace.

Positioning Strategy
It determines how the company will compete in the marketplace. Sony Ericsson also uses positioning strategy.

Core Competencies
Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen


Human Resources

Core Competencies

Innovation in partnership

Leadership in technological innovation

Competitive Advantages
The core competencies of Sonny Ericsson are also its competitive advantage that brings them at the leadership position against their rival market.

Competing on Quality

Competitive advantages

Competing on Speed

Competing on Quality
Sony Ericsson widely focuses on the quality of the product and services the
company provides to its customers. Since Sony Ericsson is a renowned brand, people completely trust it on the quality questions.

Competing on Speed
Sony Ericsson also focuses on the speed of delivering products and providing services. As soon as the innovative team of the company develops new technological products, they release them on the market without

wasting anytime.

Structure of corporate strategy Mission

To Become the Communication Entertainment Brand.

Competitive priority

Quality and Speed of production

Marketing strategy

Customer analysis/ Target market: Gender Lifestyle Geographical Profile

Competitive Analysis: Direct competitors (Nokia,LG,Samsung, Motorola and Other Chinese Brands Indirect Competitors: Walkie-Talkies, PDAs

Marketing Objective: Volume, Share

Operation strategy Financial strategy

Cost efficiency and performance improvement, Continuous process improvement, Maintaining competitive edge, Improving customer service quality

Network Initiatives, Environmental Initiatives Green Management 2010

Balanced Scorecard of Sony Ericsson

The balanced scorecard is developed by examining Sony Ericssons performance in four critical areas finance, customer, processes, learning & growing. More than financial measures are used to assess performance with the balanced scorecard.

Sony Ericsson reports second quarter 2011 results ended (15 July 2011)
Income before taxes was Euro 31 million

Smartphone account for more than 80 percent of total sales

Smartphone account for more than 70 percent of total sales

Android-based Xperia volume up 150 percent year-on-year

The consolidated financial summary for Sony Ericsson Mobile Communications AB(Sony Ericsson) for the second quarter ended June 30, 2011 is as follows Q2 2010 Number of units shipped (million) Average selling price (Euro) Sales (Euro m.) Gross margin (% Operating income (Euro m.) Operating margin (%) Restructuring charges (Euro m. Operating income excl. restructuring charges (Euro m.) Operating margin excl. restructuring charges (%) Income before taxes (IBT) (Euro m.) IBT excl. restructuring charges (Euro m.) Net income (Euro m.) 11.0 160 1757 28% 36 2% -32 68 4% 31 63 12 Q1 2011 8.1 141 1145 33% 19 2% 19 2% 15 15 11 Q2 2011 7.6 156 1193 31% -37 -3% -37 -3% -42 -42 -50

Decision area Process technology

Characteristics Flexibility, type of equipment, technology level, layout

Ericsson Mobile Communications High degree of automation, high technology level developed externally, rigid flow layout Condensed layout and complex flows

Facilities Capacity Vertical integration

Location, size, focus Amount, acquisition time, type Amount, degree, relations

Low volume flexibility Low degree of vertical integration, both upstream and downstream, problems with sourcing

Quality management

Definition, responsibility, reporting

Unstable processes, low quality yield, 100 % testing several times in the process Mix with a large degree of low skilled personnel, 2-3 days of training of short-term hired personnel, technology managed by external personnel Hierarchical, centralized Centralized planning, complex

Human resources

Skill level, wage, training and promotion policy, employment security

Organization structure and control Production planning and control

Relationship between groups, decision Responsibility, rules and systems

Process technology improvement Out sourcing problem solution Product accessories should be available User friendly OS Quality improvement Decrease Product price Develop Human resource

February 16, 2012, Tokyo, Japan - Sony Corporation (Sony) announced that the transaction to acquire (Ericsson) 50% stake in Sony Ericsson Mobile Communications AB (Sony Ericsson) has been completed as of February 15, 2012.

Its Sony Now its not Sony Ericsson



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