SonyEricsson Alliance and Cultural Analyse

Essay by oasis007University, Bachelor'sB, July 2005

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The SonyEricsson alliance

In 2001, the mobile phone terminal market world was shaken by the announcement of the agreement between two « giants » of their respective worlds. On one side the telecommunication reference Ericsson, on the other the entertainment and communications company Sony. As the result of the strategic alliance, an agreement focused on their respective mobile phone terminals businesses bringing to life a new joint venture aiming to gain consistent market shares during the next five years of operations. In this analysis I will start from an introduction of the respective companies, overview of their national and managerial culture, and a brief overview of the birth join venture, finally general overview of merger culture. Further on I will use tools taken from Hofstede and Quchi to analyze national culture, conditions and strategic management of this alliance.

1. Introduction

1.1 About the partners

Ericsson - Background

Ericsson, a Swedish based company, is the world-leading supplier in telecommunications systems with the largest customer base, including the world's top 10 operators.

The company provides total solutions covering the whole range, from systems and applications to mobile phones and other communications tools. Ericsson has been active worldwide for over 1 century and today operates in more than 140 countries, with 95,000 employees based in 24 countries. Annual investments in technical development average 15 percent of sales. These investments contribute to Ericsson's leadership in mobile infrastructure and mobile Internet, with nearly twice the size of the closest competitor. Four out of every 10 mobile calls are handled by Ericsson equipment. Ericsson has a strong focus on R&D and has filed 1,300 patent applications filed during 2000. (Annual Report 2001, Ericsson)

Sony - Background

Founded in 1946 as Tokyo Tsushin Kenkyujo (Tokyo Telecommunications Laboratory) by Mr. Ibuka, Sony has become the world-leading manufacturer of...