International Business
School of Management
MGMT3101 International Business Strategy
Session 2, 2012
Case Study Assignment
The Formation and Evolution of
Sony Ericsson Joint Venture
5 October 2012
Contents
Synopsis 3
1. Introduction 4
1.1. The Sony Ericsson Joint Venture
1.2. Motivations for Joint Venture
1.2.1. Technology Exchange
1.2.2. Risk Reductions
1.2.3. International Expansions
1.2.4. Financial Goals
2. Strategic Alliances 7
2.1. Alternative Strategies
2.1.1. Licensing
2.1.2. OEM Contracts
2.1.3. Franchising
2.1.4. Wholly Owned Subsidiaries
3. Problems with Joint Venture 12
3.1. Problems with Sony Ericsson Mobile Corporation
3.1.1. Cultural Differences
3.1.2. Saturated Market
3.1.3. Supply Issues
3.1.4. Financial Issues
4. Joint Venture into Wholly Owned Subsidiaries 15
5. Conclusion
6. Appendix 16
7. Bibliography 19Synopsis
This essay focused focuses on an the international joint venture between the Sony Corporation, (Japan), and the Swedish Telecommunication telecommunication Companycompany, Ericsson. Firstly, we discussed the motivations for the establishment of the joint venture. Secondly, we analysed the strategic alternatives strategic alliances in comparison as opposed to forming a joint venture. Last but not least, we examined the problems that occurred from the formation, and discussed whether Sony’s decision made by Sony was a good strategy as it took to take over the joint venture and turn it into a wholly owned subsidiary was a good strategy..
1. Introduction
International Joint Ventures (JV) is are the most common form of strategic alliances. The process involved involves two or more firms from different countries to collaborate collaborating in creating an independent business unit by contributing their resources. The outcome goal in most of the cases of most joint ventures is to achieve growth and a sustainable competitive advantage, and the JV usually
MGMT3101 International Business Strategy
Session 2, 2012
Case Study Assignment
The Formation and Evolution of
Sony Ericsson Joint Venture
5 October 2012
Contents
Synopsis 3
1. Introduction 4
1.1. The Sony Ericsson Joint Venture
1.2. Motivations for Joint Venture
1.2.1. Technology Exchange
1.2.2. Risk Reductions
1.2.3. International Expansions
1.2.4. Financial Goals
2. Strategic Alliances 7
2.1. Alternative Strategies
2.1.1. Licensing
2.1.2. OEM Contracts
2.1.3. Franchising
2.1.4. Wholly Owned Subsidiaries
3. Problems with Joint Venture 12
3.1. Problems with Sony Ericsson Mobile Corporation
3.1.1. Cultural Differences
3.1.2. Saturated Market
3.1.3. Supply Issues
3.1.4. Financial Issues
4. Joint Venture into Wholly Owned Subsidiaries 15
5. Conclusion
6. Appendix 16
7. Bibliography 19Synopsis
This essay focused focuses on an the international joint venture between the Sony Corporation, (Japan), and the Swedish Telecommunication telecommunication Companycompany, Ericsson. Firstly, we discussed the motivations for the establishment of the joint venture. Secondly, we analysed the strategic alternatives strategic alliances in comparison as opposed to forming a joint venture. Last but not least, we examined the problems that occurred from the formation, and discussed whether Sony’s decision made by Sony was a good strategy as it took to take over the joint venture and turn it into a wholly owned subsidiary was a good strategy..
1. Introduction
International Joint Ventures (JV) is are the most common form of strategic alliances. The process involved involves two or more firms from different countries to collaborate collaborating in creating an independent business unit by contributing their resources. The outcome goal in most of the cases of most joint ventures is to achieve growth and a sustainable competitive advantage, and the JV usually
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