History of sony ericsson as a company

History of sony ericsson as a lodge EXECUTIVE SUMMARY Sony Ericsson is a inwardnesst post of Sony and Ericsson which take hold place in October 1st, 2001. They starts work together beca design they wants to become the colloquy pleasure brand, by inspiring people to do more than just communicate, and enable every oneness to create and participate in frolic experiences. Experiences that blur the lines between communicating and entertainment. Sony Ericssons main(prenominal) head office is in London.In this report we cover topics kindred main objective toilet this vocalize venture, main strategies nates this interchangeable venture, what motivates them to deliver this join venture, wherefore this control stick venture was not as much victorious, what problems they put just about in the start of this joint venture and how they could sack up this successful by considering strategies which we describe. creative activity Sony Ericsson got in to attachment on 1st Oc tober 2001 and the main objective of this shackle was to be the worlds star(p) mail service in diligent phones. SONY In 1946 Sony confederation were founded by Masaru Ibuka and Akio Morita. G-TYPE recorder (Tape player or recorder) was the first hardw are pull created by Ibuka and Morita in 1950. From Western Electric they earned licensing rights to transistor. Sony released first easy lay transistor radio in 1957. in that respect engineers completed cathode-ray tube in October 15, 1967 that table services them in video innovation. They introduced Trinitron television for picture quality and for the penetration in the global market they externalise this in 1968. Its Japanese multinational community, and its one of the leading manufacturers of electronics, reapings for the consumer and professional markets. Basically it is a leading manufacturer of audio, video, game, parley theory and information technology proceedss for the consumer and professional markets. Sony is uniquely positioned to be a leading personal broadband entertainment go with 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 roving and Broadband Internet communication theory through its continuous technology leadership, like they are providing innovative solutions in more than 140 countries. Ericsson is the only compevery in the world offering systems for all major mobile communication standards, actively promoting standardization and open systems. REASONS FOR JOINT VENTURE The main curtilage for the venture was to integrate Sonys consumer electronics expertise with Ericssons technological hold upl sharpness 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 set up the chips to Ericsson. Ericsson faced a huge loss due to this casualty. There were rumors that Ericsson might bargain its handset division tho 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. HISTORY OF SONY ERICSSON AS A COMPANY adjunction Venture of Sony Ericsson starts from October 1st, 2001. The canonical ambition behind this joint venture is to provide their expertise for the boldness of Sony Ericsson products in the mobile phone manufacturing industry. Sony was the marginal player in the mobile phone market with the share of less than one percent, but Ericsson was at 3rd position and was successful in mobile phone manufacturing industry. collectable to fire at the Philips factory who were the single source supplier of Ericsso n, this incident creates a huge impact at the performance of Ericsson. Company couldnt effectuate the dead lines of orders completion and due to this Ericssons market share fell down, because they were relining on only one supplier. MOTIVATION BEHIND THIS JOINT VENTURE word venture often taken place because of Transaction Cost Economics, because in this cost of sole self-possession of an ecesis is greater than the joint ownership of an administration. This is to a fault the main reason of this joint venture because Sony wanted few edge in mobile phone industry and Ericsson wanted to unless its mobile phone manufacturing business.Resource- prowd view is an another(prenominal) factor that motivates Sony and Ericsson to make a joint venture. According to this point of view firm make alliance because of tangible and intangible valuable resources this creates a unique competitive edge in the industry that couldnt be imitable by any other enemy this could to a fault help for the improvement of performance. Like Sony wanted technical humphow of communication technology from Ericsson and Ericssons wanted new technology of Sony that allow for help them in the market competition, thats why they starts work together and make combination of some(prenominal) company technologies.Another motivational factor is organizational learning or knowledge because this also motivates Sony and Ericsson for making this alliance. With the help of this companys could easily acquire all(prenominal) others skills and capabilities that could also help organizations to make a new and innovative product with low cost that is also Sony Ericssons objective of alliance.Strategic Management is also the motivational factor of this alliance, which were used by both Sony and Ericsson companies. Both companies make this alliance because they wanted to make a competitive edge in the mobile phone manufacturing industry and also to maximize gain. Thats why they design symmetrical scheme f or the attainment of final goal.Sony were interested in this joint venture because they wanted to entre in mobile phone manufacturing industry and Ericsson entered in this joint venture because they were worlds number three mobile phone producer and they were facing huge loss due to fire at Philips sow who was the sole supplier of Ericsson, so they wanted to become a successful in mobile phone manufacturing industry. Sony knows that Ericsson invite access knowledge about technology in communication sector and this could help them in beguile of this industry.Sony Ericsson after making this joint venture stopped making their disjoined mobile products and starts works together. Sony form alliance with LM Ericsson. Before pro forma announcement of this joint venture, many a(prenominal) news papers published that this joint venture will cover the wide range of areas such as bafflement, manufacturing and selling of mobile phones. They sets target of expansion of Sony Ericsson pro ducts to the major markets of Europe, Japan, other part of Asia and United States. OBJECTIVE The main objective of this joint venture is to develop an alliance that would allow Ericsson to reduce spending on the costly study of next generation mobile phones at a time when many European telecom companies see their inventories piling up as the worlds prison cell phone market is growing much more slowly. STRATEGY Sony Ericssons strategy was to release new models capable of digital photography as surface as other multimedia capabilities such as downloading and viewing video clips and personal information management capabilities.When they start as a Sony Ericsson company they released many models which were new and innovative mobiles, main features of those mobiles were digital photography, downloading facilities etc.There key innovations are cheap camera phones, cross platform technology, operating(a) system experimentation and there milestone handsets are Sony Ericsson T610 in 20 03, Sony Ericsson P900 in 2003, Sony Ericsson W800i in 2005, Sony Ericsson K800i Cyber-shot in 2007, Sony Ericsson W910i in 2007.Up till 2008 Sony Ericssons numbers of employees are approximately 9,400 worldwide and their employees on contract bases are 2,500. Since October 2009, president of company is Bert Nordberg and CEO and President is Sir Howard Stringer. Chairman of the board is Sony Corporation. PROBLEMS THE JV HAS ENCOUNTERED SINCE THE FORMATION The joint venture faces losses in the start, their targeted date of making profit were shifted from 2002 to 2003. They couldnt date the main competitors of mobile phone manufacturing industry and came at fifth position in the market. The main problem behind this loss was there magic of their product in the market. Its necessary that companies go for innovations and provide satisfied product to customers but its also important that we should also know that customers continuously want something new and different. So to provide th em new and different mobiles company should always go for best Research and suppuration tools and techniques. Because if your R D incision is not up-to-date, it means that you are not providing products to customers which they really want.The second main problem which they were facing that they could not catered different markets effectively, because after making joint venture they starts working without get to know that what really customer need and wants are. So due to this lack of information their products starts facing losses and and so they had to remove their product line from the markets. Like in 2002 they stop manufacturing canon Division Multiple Access (CDMA) mobile phones for the market of United States and starts rivet on GSM as a dominant technology, due to this change in US and Germany number of business organisations cut in research and development department.The terce problem they were facing was they invest a lot without get to know that what market situat ions now-a-days are. Like in 2003 mobile phone prices starts declining but unbosom Sony Ericsson were making expensive mobiles, due to this they couldnt make as much profits as they were expected.They are facing problems because they are focusing at cost-cutting programs and job losses. In June 2008, they were having 12,000 employees and after launched this cost-cutting program it had slashed its global workforce by around 5,000 people. R D is an important department for any organization and it play an important role for mobile phone manufacturing companies, but Sony Ericsson take this as a cost and closed R D departments which were working globally like Chadwick House, Birchwood (Warrington) in UK Miami, Seattle, San Diego and RTP (Raleigh, NC) in the USA the Chennai Unit (Tamil Nadu) in India Hassleholm and Kista in Sweden and operations in the Netherland, UIQ centers in London and Budapest were also closed. Due to this change they couldnt manufacture innovative products for cu stomers and this is the main reason behind the failure of this joint venture. WHY JOINT VENTURE IS NOT roaring? Joint ventures often failed because company not build customer base products, due to which customers switched to other competitive products that provides them more reliable and innovative products. This is also the main reason of failure of joint venture of Sony Ericsson.They were providing innovative products but marketing strategy was not as much effective that they could tie customers.They were not providing the advanced versions of mobiles as much earliest as other competitors of mobile phone manufacturing were providing. There R D was slow as compared to other mobile phone manufacturers.They were not focusing at proactive approach, they were also not productive reactive. So due to this they were facing problems. Joint venture always successful if company set a target, because it shows that in which direction they are moving. Sony Ericsson also faces the problem of not meeting the set date profit, due to which they face loss. So its necessary that target should already be explained and company works together for the achievement of target.This joint venture is also not as much successful because Sony wants results as early as possible and Ericssons were not making profits as per expectations, so due to this they starts cut number of jobs and also remove Research and Development departments which were working globally, due to this they couldnt make innovative products tally to customer ineluctably. And when any technical business dont have R D department that helps organization in the development then how they could move in the industry successfully. Sony Ericsson s joint venture was not as much successful because they were not working for the attainment of goals which were designed after the joint venture, both were worried for their individual goals like Sony was worried because they wanted market share in mobile phone manufacturing indus try and Ericsson was worried because they wanted their industry temper back. So thats why they were facing problems. STRATEGIESUSED TO ADDRESS THE JV PROBLEMS According to our outline Sony Ericsson must follow these strategies that will help them to gain a hanker term market share and it will also help them to make a successful joint venture in future eldest step they should have to take place that they conduct the depth psychoanalysis of different markets according to different countries, that will help them to get to know that what particular region related customers are expected from them and what they could provide them according to customer expectations.Sony Ericsson must make a connection to customers that will help them to get market share in the mobile phone manufacturing industry. They should have to conduct regular meetings to their customers, with the help of this they could get to know that what their customers really forecast about their business, what type of prod ucts they really want and how they could provide them products according to their perceptions that satisfies them. By listening process they could find that what potential needs are of customers and how they could provide them effective solutions. By using feedback technique they could also remain in connection to their potential customers, this could be more effective if it could be through with(p) periodically.There must be a coordination among all business units this will help them to bring a product that will satisfy needs of customers and that will be unique.They must have a strong marketing campaign that will create a positive impact on overall business, because good representation of product attracts customer.They should also have to use social marketing outlets like Facebook, Google etc for the promotion of their products this will enhance its frequent exposure.