'Sony-Ericsson Case\r'

'The reasons for this argon of course numerous. One of the reasons was that two companies besides had a minor grocery store percent, Ericson 10% and Sony 1,5% of the world market, whereas as the leader Nooks had 30,6%. This giving Nooks a huge advantage in existing customers as well as strong brand aw beness. other main reason for the fusion of both the wandering(a) departments of the company was that both had problems in managing their departments. Sony had so more different sectors it was in that mobile was Just unitary more and was ;t paid enough attention.Ericson had the engineering to be a leader, but they were al personal manners criticized for only existence a group of engineers, surfaceing better products, but not paying as often attention to customers desires as Nooks did. Therefore being importantly less successful than their Finnish rival. Both companies indispensable to restructure their efforts in the mobile development and that Is why it do sense for them both to start this partnership. Ericson would run people and their expertise In telecommunications and Sony it ‘s expertise In consumer electronics products as well as $ viosterol million.Both were able to cut costs significantly and even so able to conk a global shammer on this prosperous market In the future. 2) What was essendial to succeed in this market? The main attributes that were required to succeed in the market was the k right awayledge to develop in the direction of the technology that would be apply in the future, as well as erudite and offering your customers what they were face uping for. In fact one and only(a) can say that Nooks did everything one needed to do to succeed. They listen to what their clients where looking/expecting from their mobile phones, and built a product portfolio accordingly.Due to this approach they were able to offer a specific product to every customer profile they had. Concerning technology they also did grave work being the clear leaders In the 26 markets, which gave them a age head start. The management also did an small work, having a better-cost extra effort on not becoming a huge corporation with 100,000 employees, staying instead small gave them the advantage that closing could be interpreted quickly and that changes and adoptions to the products were able to be done immediately. ) oppose Ionians and Sony Ericson Mobile Communications situations (activities, competences, finances) SEEM had a clear goal, which was to become the global number one player for multimedia products. This was supposed to be achieved by combining their threads in R&D, merchandising, gross sales, distribution and customer services. The Joint force should give them the resources to all overcome their seemingly untouchable competition Nooks. The soft activities they were planning and adapting were: being responsive to the market, analyzing the expression of the consumers and of their competitors.Nooks on the other hand motiveed to concur their activities in the mobile sector at the equivalent high level they had been over the sasss, strengthening their carriage in the market today and constantly put in R. Even increasing the percentage of plunder sales being reinvested to R, which were around 8,9% in the youthful sasss, the goal being to maintain the strong market position for the 36 generation phones. From a fiscal point of view, we can only compare the case-by-case financial statements of Ericson, Sony and Nooks from the appendix of the case.In a first look at the data available we can subtract that the financial situation of Nooks is clearly the most beneficial one. To be able to analyses financial statements that are comparable, I will only look at the ones of Nooks and Ericson. The Sony sight has so many different activities going on that from this financial statement I cant detect which revenues are from the mobile industry. The only observations I would like to hang about the company is that their revenue has been increasing over the years, but net income has been decreasing.This showing that in the affectionateness business we are talking about Nooks has made the biggest step by increasing net sales in this sector by offer having a 80% growth per year between 1998 and 2000. These numbers racket are also reflected in the market share Nooks has on the world mobile market. 4) What are the latent risks for this alliance? The risks for this alliance are of course numerous. primary of all Sony Ericson has to find a proper way to communicate to the public/customers why they wee-wee integrate heir mobile departments and explain what profits this results in for them in the tend to which to other brands.This is the main risk, that they have to manage, which has to be dealt with proper attention and experienced marketing experts, so that a clear message is sent out to the public and current/future customers. other potential risk is the management t hat consists of managers from both Ericson and Sony. It provides deviation potential when two corporate cultures clash. Managers from both sides are used to doing business their way but now they have to adapt to the managing methods of one another.This might diagnose it difficult to find a common strategy, with which they want to market their brand. The responsibilities and decision fields have to be clearly defined to avoid these kinds of occurrences as good as possible. A further threat would be that both sides could quickly get frustrated if results are not as good or worsened than expected. This could lead to one accusing the other of wondering(a) management, insufficient research and so on, resulting in a bad atmosphere in the company. This would further expand the merger and might even lead to the decision to go separate ways again.\r\n'