Sony Ericsson Failure

Superior Essays
10. THE FAILURE IN JOINT VENTURE OF SONY ERICSSON
On 1st October 2001, Japan’s Sony started a joint venture with Sweden’s Ericsson which aimed to be the world’s leading position in the mobile phone and able to compete with the strong rivals such as Nokia, Samsung, Motorola and so on. For your information, Sony is the leading manufacturer of audio, video, games, communications and information technology products for consumers and professional markets. On the other hand, Ericsson is more expertise in the sector of Mobile Broadband Internet Communications through continuous technology leadership and innovative solutions. (Sony Corporation, 2015) Joint venture of Sony Ericsson aimed to create a unique competitive advantage as well as improve their
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Despite the continuing losses, Sony Ericsson has adopted the business transformation program and also continued cost saving activities in order to improve the performance as well as increase the revenue. However, these programs and strategy did not help much effective in enhancing the sales performance and making profits as expected.
In our opinion, there are few reasons which contributed to the failure of merges between Sony and Ericsson in generating the profit.
1. Misrepresentation of their products in the
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In 2008 and 2009, Sony Ericsson faced difficulties in competing with those strong rivals due to unstable experience and innovation in cell phone market. Sony Ericsson failed to respond to the customer demand, which shifted to touchscreen as well as cheap Android smartphone and this has attributed to the loss of market share in the global market. As the arrival of the iPhone and cheap Android smartphones, which provide satisfied products to customers, Sony Ericsson could not keep their customers continue to support their high-end products and switched to the touchscreen and cheap Android smartphones which suited to their preferences. Therefore, this affected their sales performance, whereby their profit fell dramatically in 2008 and

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