Background & Situation Analysis of Sony-Ericsson
Sony Ericsson Background and Situation analysis
Ever since the Japanese electronics company Sony and the Swedish telecom giant Ericsson came together to form Sony Ericsson, big things were expected in terms of technologically advanced wireless phones as well as improved sales and market shares. However, the first year passed with a lot of disappointment. Sony Ericsson’s already low market shares began to drop rapidly and the company was losing money. On the other hand, the much anticipated Sony Ericsson T68i phone was introduced and was a major hit. It was the first GSM/GPRS (global system for mobile communications/general packet radio service) color screen handset. Its Bluetooth technology was also the first of its kind, allowing wireless connections to headsets and PC synchronization. One of the accessories included a snap-on digital camera, which has become quite popular and a must for all new models. In the past year, Sony Ericsson has seen a revival in the company as they continue to introduce new revolutionary devices such as the P800 and T610 and set new standards. All this success has contributed to an increase in market shares and has pushed them back into the top five in cell phone manufacturers. In order to continue this success, a new IMC plan is needed. The first step will be to analyze the marketing situation and conducting a SWOT analysis.
Situation analysis
External factors:
Consumer behaviour analysis - Buyers tend to be wealthier individuals who are willing to pay more for a better phone. They have higher expectations than those who are first time buyers. Sony Ericsson is creating new ways to use multimedia communications, which creates new business opportunities. Christmas time is usually when sales volumes increase.
Economic trends - According to IDC's Worldwide Handset QView, worldwide handset shipments grew by 19.2% year-over-year in 2Q03 and increased sequentially by 6.7% to 118.3 million units despite world
Ever since the Japanese electronics company Sony and the Swedish telecom giant Ericsson came together to form Sony Ericsson, big things were expected in terms of technologically advanced wireless phones as well as improved sales and market shares. However, the first year passed with a lot of disappointment. Sony Ericsson’s already low market shares began to drop rapidly and the company was losing money. On the other hand, the much anticipated Sony Ericsson T68i phone was introduced and was a major hit. It was the first GSM/GPRS (global system for mobile communications/general packet radio service) color screen handset. Its Bluetooth technology was also the first of its kind, allowing wireless connections to headsets and PC synchronization. One of the accessories included a snap-on digital camera, which has become quite popular and a must for all new models. In the past year, Sony Ericsson has seen a revival in the company as they continue to introduce new revolutionary devices such as the P800 and T610 and set new standards. All this success has contributed to an increase in market shares and has pushed them back into the top five in cell phone manufacturers. In order to continue this success, a new IMC plan is needed. The first step will be to analyze the marketing situation and conducting a SWOT analysis.
Situation analysis
External factors:
Consumer behaviour analysis - Buyers tend to be wealthier individuals who are willing to pay more for a better phone. They have higher expectations than those who are first time buyers. Sony Ericsson is creating new ways to use multimedia communications, which creates new business opportunities. Christmas time is usually when sales volumes increase.
Economic trends - According to IDC's Worldwide Handset QView, worldwide handset shipments grew by 19.2% year-over-year in 2Q03 and increased sequentially by 6.7% to 118.3 million units despite world