Sony Without Ericsson Essay
Sony Ericsson was a company manufacturing mobile phones. It was founded on October 1, 2001 by consolidation of two companies Sony (Sony Corporation) and Ericsson (Telefonaktiebolaget L. M. Ericsson). Ericsson, which had been in the mobile phone market for decades, and was the world's third largest cellular telephone handset maker due to the fire at Phillips factory, were not able to get chips for the phones. That caused a shortage and forced Ericsson to find a way to solve this difficulty. Therefore, when at the end of 2000, when the Sony Company suggested creating joint venture, Ericsson apprehended this news, as a miracle. The company was rescued. Duties were distributed very simply – from Sony the …show more content…
Focus on one product
In new Sony Mobile the major focus are smartphones and other “smart” devises like tablets and MP3 players. That gives an opportunity to concentrate on researches and innovations in one specific field that means higher quality and productivity. Overall, makes Sony more competitive. For Ericsson, the payment means that it can exit the mobile phone business effectively without ties, and focus on building mobile and wireless networks, where its expertise lies.
One of the first operation of Sony-only Company was a move of headquarters from Lund, Sweden to Tokyo, Japan in order to fully integrate with its parent company. In addition, the headquarters move was part of a plan to reduce its workforce, then 10,000 employees, by 20%.
Sony wanted results as early as possible and Ericsson's were not making profits as per expectations, so due to this they started cut number of jobs and also remove Research and Development departments which were working globally, due to this they couldn't make innovative products according to customer needs. Moreover, when any technical business do not have R & D department that helps organization in the development then how they could move in the industry successfully. Therefore, with new company comes new structure that takes into account