Evaluation of the Alliance and Its Performance

IN A NUTSHELL, both Sony and Ericsson joined forces with the end in mind of generating more profits than if they had struck it out by themselves in the telecommunications business. The financial statements show a failure of the Sony Ericsson brand of company to cope with the aftershocks of the current depression enveloping the entire earth. However, this leader in the mobile phone industry is expected to bounce back to its old self after the depression evaporates into thin air probably by 2011. Conclusively, the company is on the right track in producing new mobile phone models each year to fill the needs of its current and prospective clients. The Sony Ericsson co opting alliance was mainly due to the pooling of the resources of both companies to derive economics of scale or limit its risk (Lorange & Chakravarthy 2007, 94).