Sony Ericsson’s Mobile Communications International and National Industry Strategic AnalysisExecutive Summary A strategy is a systematic plan of action and it has to have its aims and objectives. This indicates that for a strategy to be developed, the developer has an aim to accomplish. Strategic analysis aims at finding out if the developed strategies have or can accomplish the missions set for the business or the organization to meet through them. In the analysis below therefore a strategic analysis was conducted on the model of Sony Ericsson in relation to the mobile communications industry.
The aim of the analysis is to find out the company’s position in the market and its future position based o the findings. Objectives: To analyze the external environmentAnalyze the internal environmentAnalyze the strategy and provide recommendationsThere are so many models used in the analysis of strategies but in the case below, PEST and Porter’s forces tools were used to find out the external factors that may affect the business. This analysis revealed the opportunities and the threats of the organization. An internal analysis was also conducted which showed the weaknesses and the strengths of the company.
The company is not in a stable position although it is currently in position four in the whole industry. It however shows signs of improvement and has high potential of improving if changes are made in faulty areas. The company has very many threats and a weakness that can alter its competitive position to a negative position. Its market share has also been reducing since 2008. Recommendations have been made based on the findings and indicate the need for thorough market research and adoption of appropriate strategy. IntroductionBrief Outline of the CompanySony Ericsson is a mobile communications company that was established in 2001 by a joint venture between Sony Corporation, an electronic power house and Ericsson, a telecommunications leader.
The two companies equally own the joint venture. Sony Ericsson deals with mobile multimedia devices with PC cards, phones and accessories included. The company produces mobile phones, wireless systems, wireless data devices, Hi-technology accessories, mobile music devices and wireless voice devices (Telford 2008) all produced for various purposes including communication, entertainment, imaging and music.
These products are produced through the use of a combination of innovative applications and technology (Sony Ericsson Mobile Communications 2010). Since its establishment, the company has experienced problems such as the 2008 profit losses as indicated in the first quarter 2008 results that brought down the company’s performance as well as its competitiveness. It was in the verge of closure sometime but it pulled through in the long run. Irrespective of the losses and other problems experienced, Sony Ericsson is considered to have had first five years after formation a success (Stensgaard 2006).
It is currently fourth placed after Nokia, Samsung and LG in the mobile communications industry and is accepted as world leader in innovation and design (Sony Ericsson Mobile Communications 2010). The success of this telecommunications company is attributed to its resources which according to Telford no other telecommunications company has in the market. Sony Ericsson has a combination of Sony’s entertainment properties and electronic experience, and Ericsson’s telecoms know-how and infrastructure. A combination of these talents has enabled the company grow and has created a portfolio of products and services (Stensgaard 2006).