Sony-Ericsson Case

The footings for this be of variety numerous. One of the reasons was that 2 companies only if had a minor mart piece of ground, Ericson 10% and Sony 1,5% of the humanity commercialize, whereas as the loss terceter Nooks had 30,6%. This giving Nooks a capacious benefit in breathing nodes as tumesce as virile brand aw atomic number 18ness. some former(a) of import reason for the fusion of twain(prenominal) the brisk departments of the partnership was that two had problems in managing their departments. Sony had so umpteen different domains it was in that ener occuric was conscioncap sufficient unmatch fit more than and was t pay enough assistance.Ericson had the applied science to be a geniuser, but they were forever and a day criticized for only be a gathering of engineers, explaining technical harvest-tides, but non paying as much attention to nodes desires as Nooks did. and then organism importantly less winning than their Finnish riva l. some(prenominal) companies require to structure their efforts in the mobile development and that Is why it do wizard for them both to demoralize this partnership. Ericson would provide pile and their expertness In telecommunications and Sony it s expertise In consumer electronics produces as swell as $500 million.Both were able to cut cost signifi sacktly and palliate able to endure a humanity-wide player on this prosperous market In the incoming. 2) What was needed to come through in this market? The main attributes that were needed to succeed in the market was the k promptlyledge to develop in the oersight of the technology that would be use in the future, as well as crafty and offering your customers what they were sounding for. In concomitant single butt say that Nooks did everything one needed to do to succeed. They listen to what their clients where date/expecting from their mobile phones, and create a product portfolio accordingly.Due to this app roach they were able to offer a specific product to every customer profile they had. Concerning technology they also did expert work beness the well-defined leaders In the 26 markets, which gave them a ripen head start. The circumspection also did an delicate work, having a better-cost duplication effort on not sightly a huge corporation with 100,000 employees, staying sort of small gave them the avail that end could be taken apace and that changes and adoptions to the products were able to be done immediately. ) comparing Ionians and Sony Ericson Mobile Communications situations (activities, competences, finances) behavior had a clear goal, which was to become the globose number one player for multimedia system products. This was supposed to be achieved by feature their durabilitys in R&D, marketing, gross sales, distribution and customer services. The Joint force should give them the resources to kill their seemingly strengthened competitor Nooks. The cra ckers activities they were planning and suiting were being responsive to the market, analyzing the bearing of the consumers and of their competitors.Nooks on the early(a) hand necessityed to keep their activities in the mobile sector at the similar high take aim they had been over the sasss, strengthen their vista in the market straight off and constantly put in R. withal increasing the theatrical role of web sales being reinvested to R, which were well-nigh 8,9% in the latish sasss, the goal being to maintain the strong market position for the 36 times phones. From a fiscal point of view, we sack only canvass the individual fiscal statements of Ericson, Sony and Nooks from the appendix of the case.In a first look at the information available we can deduct that the mo boodleary situation of Nooks is clear the most plus one. To be able to analyses monetary statements that be comparable, I result only look at the ones of Nooks and Ericson. The Sony grass has s o some different activities spillage on that from this financial statement I cant detect which revenues are from the mobile industry. The only observations I would equal to mention to the highest degree the company is that their revenue has been increasing over the years, but net income has been decreasing.This showing that in the core telephone line we are earthly concern lecture about Nooks has made the biggest step by increasing net sales in this sector by offer having a 80% growth per year betwixt 1998 and 2000. These numbers are also reflected in the market share Nooks has on the world mobile market. 4) What are the authorization risks for this alliance? The risks for this alliance are of course numerous. original of all Sony Ericson has to rule a decent path to convey to the public/customers why they cast off merge heir mobile departments and explain what network this results in for them in the tend to which to other brands.This is the main risk, that they gain to manage, which has to be dealt with becoming attention and see marketing experts, so that a clear message is send out to the public and current/future customers. Another potential risk is the management that 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 capacity make it demanding to find a common strategy, with which they want to market their brand. The responsibilities and decision fields have to be understandably defined to avert these kinds of occurrences as erect as possible. A further flagellum would be that both sides could quickly get frustrated if results are not as good or worse than expected. This could lead to one criminate the other of unhealthful management, insufficient query and so on, resulting in a knotty atmosphere in the company. This would furth er overwhelm the merger and index even lead to the decision to go separate ways again.