Industry Analysis

Sony and Ericsson were struggling hard before their alliance in 2001. Both companies did not perform well financially on their own. The combined forces resulting to the installation of the Ericsson logo on Sony cell phones. This immediately increased the cell phones sales figures (Hisrich, 2000, 15). One of the initial marketing strategies of Sony Ericsson was to sell its camera phones in 2003. This T610 camera phone immediately sold like hotcakes when sold in the market. The T610 black and silver phones were immediate success stories. The company increases its mobile phone models to more than thirty -five in order to increase its sales figures (Gall, 2006, 293). The James Bond movie, Casino Royale, featured the Sony Ericsson mobile cyber shot phone unit. The success of these mobile phones was due to the many features it offered. The mobile phones included such features as MP3 players, and cameras. The company also increased its customer base by including Google Blogger facility on its Cyber shot phone which enables the mobile phone users to create their own blog and to post photographs on it in just two or three keystrokes (Henry, 2008, 2238).

One of the officers of Sony Ericsson believes that the communications product sales had increased because many people prefer to hide their photographs, songs, and other items in their mobile phone units. The cell phones also include a camera to take and keep pictures of friends and families. The younger generation would use the Sony Ericsson to record and share internet music downloads (Henry, 2008, 2238). The middle of the 1990s showed that the European mobile industry started to mushroom and sales growth was phenomenal. A newly established large consumer electronics company had poised a challenge to the current market players (Hoover, Elorante, 2991, 65).

Sony Ericsson Mobile Communications is one of the world’s largest leading mobile phone brands. The alliance hired six thousands workers around the world five years after the company was born out of the wedlock of Sony of Japan and Ericsson of Sweden. The company has grown from its early beginning be one of the most successful consumer electronics brands in their market segment. Its success is due to its innovative way of introducing products that are considered first in the telecommunications market (Flickenger, 2003, 21). Its marketing strategy is founded on its customer insights and a passion for strategic marketing. The alliance of Sony and Ericsson is based on trust. Both sides have invested their time, energy and money to the merger with the hope that synergy will bring more cash inflows into the alliance than if both Sony and Ericsson struck it out in the business world on his own (Barnes,2003,14).

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