History Ericsson had decided to obtain chips for its phones from a single source—a 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.

History 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 Telecommunications

Founded October 1, 2001 (as Sony Ericsson)

Headquarters Hammersmith, London, United Kingdom

Area served Worldwide

Key people Kunimasa Suzuki (President and CEO)

Bob Ishida (EVP and Deputy CEO)

Revenue €5.212 billion (2011)

Operating income € −206 million (2011)

Profit € −247 million (2011)

Employees 7,500 (as of December 2010)

Parent Sony Corporation

Website www.sonymobile.com

“To Become the Communication Entertainment Brand.”

“To Become the Communication Entertainment Brand.”

Quality and Speed of production Quality and Speed of production

Customer analysis/ Target market:GenderLifestyleGeographical Profile

Customer analysis/ Target market:GenderLifestyleGeographical Profile

Competitive Analysis:Direct competitors (Nokia,LG,Samsung, Motorola and Other Chinese BrandsIndirect Competitors:Walkie-Talkies, PDA’s

Competitive Analysis:Direct competitors (Nokia,LG,Samsung, Motorola and Other Chinese BrandsIndirect Competitors:Walkie-Talkies, PDA’s

Marketing Objective: Volume, ShareMarketing Objective: Volume, Share

Cost efficiency and performance improvement, Continuous process improvement, Maintaining competitive edge,

Improving customer service quality

Cost efficiency and performance improvement, Continuous process improvement, Maintaining competitive edge,

Improving customer service quality

Network Initiatives, Environmental Initiatives - Green Management 2010

Network Initiatives, Environmental Initiatives - Green Management 2010

Mission

Competitive priority

Marketing strategy

Operation strategy

Financial strategy

Structure of corporate strategy

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 Q1 2011 Q2 2011

Number of units shipped (million) 11.0 8.1 7.6

Average selling price (Euro) 160 141 156

Sales (Euro m.) 1757 1145 1193

Gross margin (% 28% 33% 31%

Operating income (Euro m.) 36 19 -37

Operating margin (%) 2% 2% -3%

Restructuring charges (Euro m. -32 - -

Operating income excl. restructuring charges (Euro m.)

68 19 -37

Operating margin excl. restructuring charges (%)

4% 2% -3%

Income before taxes (IBT) (Euro m.)

31 15 -42

IBT excl. restructuring charges (Euro m.)

63 15 -42

Net income (Euro m.) 12 11 -50

Decision area Characteristics Ericsson Mobile

Communications

Process technology Flexibility, type ofequipment, technology

level, layout

High degree of automation, hightechnology level developed

externally, rigid flow layout

Facilities Location, size, focus Condensed layout and complex

flows

Capacity Amount, acquisition time,

typeLow volume flexibility

Vertical integration Amount, degree, relations Low degree of vertical integration,both upstream and downstream,

problems with sourcing

Quality management Definition, responsibility,

reporting

Unstable processes, low qualityyield, 100 % testing several times

in the process

Human resources Skill level, wage, trainingand promotion policy,

employment security

Mix with a large degree of lowskilled personnel, 2-3 days oftraining of short-term hiredpersonnel, technology managed by external personnel

Organization structure

and control

Relationship between groups,

decisionHierarchical, centralized

Production planning

and control

Responsibility, rules and

systemsCentralized planning, complex

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

Suggestion

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.

Now it’s not Sony EricssonIt’s Sony

video

Thanks

Any questionAny question