The Formation and Evolution of Sony Ericsson Alliance Assignment - 2

The Formation and Evolution of Sony Ericsson Alliance - Assignment ExampleThe merger was also approved by the European and separate regulatory authorities. The new company, headquartered at London, UK, envisaged total employee say-so 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 give way the communication entertainment brand enabling everyone in creating and participating in entertainment experiences. The new companys product line includes Mobile phones and hold multimedia communication products.As per the data provided by International Data Corp (IDC), Nokia controlled 30.8 percent grocery, Motorola at 14.6 percent and Ericsson at 10 percent of market share in mobile market at the time of the merger. Thus, Ericssons market share is way below market leader Nokia.In beat the alliance, Ericsson had the benefit of entrance money to Sonys Japanese market, and Sonys consumer experience p articularly 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 technology and entry to US market.Informing a joint venture, Sony had the benefit of sharing Ericssons international telecommunication experience and meet 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 competitive arena. Ericsson was categorical in its financial report of 2001 that Ericsson will have a chance of augmenting supply chain strength from Sonys proven and established supplier resource base.