The Formation and Evolution of Sony Ericsson Alliance Assignment - 2

The Formation and Evolution of Sony Ericsson Alliance - Assignment ExampleThe uniting was also approved by the European and other regulatory authorities. The new company, headquartered at London, UK, envisaged total employee strength at the time of merger at 4000 of which Ericsson brought 2500 and balance contributed from Sony.The mission statement of the new company is to become the communication entertainment station enabling everyone in creating and participating in entertainment experiences. The new companys product crinkle includes Mobile phones and handheld multimedia communication products.As per the data provided by International Data corporation (IDC), Nokia controlled 30.8 percent market, Motorola at 14.6 percent and Ericsson at 10 percent of market share in rambling market at the time of the merger. Thus, Ericssons market share is way below market loss leader Nokia.In forging the alliance, Ericsson had the benefit of doorway to Sonys Japanese market, and Sonys consu mer experience particularly in digital screens, and Memory stick. Sony had the benefit of access to Ericsson base stations and 3G infrastructures. Moreover, Sony had access to Ericsson handset core engineering and entry to US market.Informing a joint venture, Sony had the benefit of sharing Ericssons international telecom experience and chance to fill missing link in form of satellite, gateway, and phones. On the other hand, Ericsson had access to Sonys design and production processes and facilities in China. Sonys financial strength was in benefit to Ericsson in the long run. Research and development costs could be shared between the partners in the current war-ridden arena. Ericsson was categorical in its financial report of 2001 that Ericsson will have a chance of augmenting supply mountain chain strength from Sonys proven and established supplier resource base.