Business strategy of sony ericsson

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1. Introduction 2. Company Info 3. Context of business strategy 4. Stakeholders 5. Importance of stakeholders analysis 6. External Audit 7. Competitor Analysis 8. Internal Audit 9. Issues involved in strategic planning 10. Planning technioques 2


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This presentation is going to speak about the business strategy of Sony Ericsson. It includes the identification of company's key stakeholders, its mission, vision, goals and core competencies. The next phase of this presentation includes the assessment of company’s external environment as well competitiveness. Another part provides the understanding about a range of issues involved in strategic planning process. The aim behind undertaking this study is to identify the effectiveness of Sony Ericsson’s business strategies.

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Name: Sony Ericsson Industry: Mobile and Smartphone Establishment: October 1, 2001 as a joint venture between Sony and the Swedish telecommunications equipment company Ericsson, under the name Sony Ericsson. Financials 2007 2008 Chang e Number of employees: 7,500 â‚Ź3,108 â‚Ź2,808 -10% Expanded in around 40 countries. Revenue Gross -35% Key Competitors: Profit

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1.1

Mission “To develop a wide range of innovative products and multimedia services while improving the experience of customers through creating new entertain world” Vision “To be the Prime Driver in an all communicating world.”

Core competencies “ Human resource is the main core competency of Sony Ericsson. They focused on the acquiring the innovative and creative people .” 7


Core values “Respect, professionalism and perseverance are the values that are the foundation of the Ericsson culture, guiding us in our daily work – how we relate to people and how we do business.” Goals and objectives ❖To deliver world class services ❖Maintain leadership ❖Use of high class technology in the products

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1.2

For each company the approaches to strategic planning differ as per the attitude and culture of the company. There is a range of issues which can affect the strategic planning process of an organization. For Sony Ericsson these issues are: Commitment Credibility Communication

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1.3

In order to make effective business plan it is must for the companies to use appreciate tools. The effectiveness of any strategy largely relies on the information being used as base. Sony Ericsson can use following techniques for strategic planning: Market Research Feasibility Study

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2.1 Organizational audit

Internal audit of any organization can be conducted by using SWOT analysis. This tool includes four major dimensions for analyzing the ability of company to attend opportunities and face the threats. These four major dimensions are:

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STRENGTHS Well expanded business

WEAKNESSES High prices

Innovative products

Lack of customer support

OPPORTUNITIES Increasing familiarity of people

THREATS Powerful competitors

with technology

High bragging power of customers

Product differentiation 13


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2.2

The environmental audit includes the assessment of key external forces which can make direct as well as indirect impact on the performance of any organization. The factors of external environment can be identified on the basis of PESTEL analysis. This tool analyzes six major factors of external environment that are: Political Economic Social Technological Environmental Legal

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Threat of New Entrants

Low

Bargaining Power of Buyers

High

Bargaining Power of Suppliers

Low

Competitive Rivalry

High

Threat of Substitutes

High

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This assessment is made to identify the competitive position of the company. Porter's five force model is one of the most comprehensive ways of analyzing the level of competition in market. This model evaluates the level of competition on the basis of five key parameters that are:

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2.3

Stakeholders are all those firms and individuals that have direct or indirect interest in an organization. 20


Stakeholder analysis can be stated as the review and consideration of the impact stakeholders have on a business.

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•Liu, Q. 2011. Strategic capacity rationing when customers learn.Manufacturing & Service Operations Management. 13(1), pp. 89-91. •Barney, J.B. 1999. Looking Inside for Competitive Advantage. In Strategic Human Resource Management. pp. 128–41. •Pycraft, M. 2000. Operations Management. South Africa: Pearson Education. •Wu, S.D., Kempf, M.O. and Atan, B. 2010.Improving newproductforecasting at Intel Corporation.Interfaces.40(5), pp. 385- 396. •Mukhopadhaya, S.K., 2007. Production Planning And Control: Text And Cases. 2nd ed. PHI Learning Pvt. Ltd. •Slack, N., Chambers, S. and Johnson, R. 2010. Operations management. Prentice Hall. •Bachmann, J.W. 2002. Competitive strategy: It’s ok to be different. Academy of Management Executive. 16(2), pp. 61–5. 23


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