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Sony Ericsson Case Analysis

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1. Introduction 1.1 Background Sony Ericsson was found in 2001 as a joint venture owned in equal parts by the Sony Corporation and Ericsson AB. The mother company, Sony Ericsson Mobile Communications AB, is registered in Sweden where also its headquarters are. Since it dominates the market with a market share of around 45%, Sony Ericsson is the market leader in Sweden in the mobile phones sector in 2007. The continuous popularity of its new mobile phones will ensure that the company continues its leading position in the Swedish market. However, due to narrow products, the market share was rapidly decreased in recent years. The economy is engaging a worldwide slowdown and confronting a challenging market environment. Some experts are …show more content…

In the fourth quarter the Sony Ericsson is planning to widen the product portfolio and move upwards in the small phone segment. And, in the coming quarters, this kind of the products will be released to the market. These new technologies will lead the company's technical innovation to a new field, and open up new market opportunities (www.proquest.umi.com). 2.2.2 Market analysis While volume sales are forecast to go up by 4.1% over the period 2008-2013, growth in sales volume will contain much smooth, at an average of just 0.2%. Market outlook is still not optimistic. It can be shown that the UK market is fast approaching saturation point in this sector, so it is not astonishing that this increasing has been so smooth in value terms. Due to exchange the mobile phones were previously quite longer, while at the beginning of recession people hold on to their phones and reluctant to change the mobile phone to save money. Mobile phone technology widen in many different areas, ranging from the integration of the media fields, such as music, video and the Internet, and to make the lightest, smallest phone. According to Ofcom, 17% of consumers use a 3G phone, 4% of adults use their mobile phones to watch video content, 17% use them for audio content, and 20% use them for Internet access. Company should develop more appropriate products to meet the

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