[Business strategy]

[The definition of business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives]

Strategy Types: GenericTwo main categories of strategies can be identified: Generic (general) strategies like

Growth : purchase new assets, including new businesses, and to develop new products. The Inland Revenue has expanded from being just a tax collector, to other functions such as collecting student loan repayments and paying tax credits. Internationalization/globalisation i.e. moving operations into more and more countries. For example companies like Gillette, Coca-Cola, Kellogg's, and Cadbury Schweppes are major multinationals with operations across the globe.

Retrenchment involves cutting back to focus on your best lines. The Americans refer to this as 'sticking to the knitting' - i.e. concentrating on what you do best.

Strategy Types: Competitive Advantage 2. Competitive Advantage Competitive strategies are

also important. Competitive strategies are concerned with doing things better than rivals.

By selling goods at lower prices than rivals, by economies of scale.

By differentiating your product from those of rivals - which enables you to charge a higher price if desired.The airline industry is divided into two main segments. At one end of the market are the premium price category firms such as British Airways that concentrate on differentiation. They offer better service to passengers, more legroom, in flight entertainment, and more individualized attention. At. Ryan air focuses on short haul destinations and keeping its planes in the air as frequently as possible in a 24 hour period.

Sony Ericsson Stakeholders • Board of directors: Major owners of the

organization.• Customers: The customers are the end

users of the product.• Employees: The success or failure of the

organization affects the career of 7500 employees, who are intricately linked to the company

Stakeholders Contd…Shareholders : Shareholders are mainly

responsible for assuring that the organization runs properly and owns shares in the company

• Community : Community needs the employment benefits, economic and social benefits from Sony.

• Government : Government plays major role in shaping the policies of Sony Ericsson.

Competition• The

competitive landscape

Nokia

SamsungApple

BlackberrySony

Performance

Price

PESTLE Analysis• Political : Deregulation in the global

market helps the organization. The various policies of different governments and political scenario prevalent in different countries

Economic :includes the various economics like inflation ,deflation, recession that might in turn affect the sales of the company or even boost it.

• Social : The lifestyle of the people, the way they view mobile, for entertainment purpose or work, are the products sustainable enough.

PESTLE Contd…• Technological: Advancement in technology of

other mobile phones companies is more than Sony Ericsson.

• Legal: After the recession protection laws can be a hindrance for the organization.

• Environmental: There are increased environmental regulations, along with the kind of restrictions, related to radiation emissions.

Porter’s Five force for Sony Ericsson

Competition among the firms: Market is highly competitive. Major competitors are – Nokia, Apple,

Blackberry, Motorola Samsung, Local Companies.

Immense competition reduces the market share of Sony Ericsson.

Threats of New Entrants – Threats of new entrants are low-medium.

Technological, patent and investment barriers for new entrants.

Porter’s 5 Forces Contd• Threats of substitutes: Various

substitutes are available

Substitutes are: L and phones , Chat, Video conferencing through internet.

• Bargaining power of consumers: High bargaining power of the consumers.

High availability of products enhance the bargaining power of consumers (Winer, 2004).

Swot-Strengths Existing Knowledge of Target Market which is

consumers in the age group of 15-40. Research & Development done in vast number of

Countries including Sweden, China, Japan , US & UK

Creation & Innovation of Fantastic Products Most attractive & innovative Global Brand

SWOT -Weakness

Low effective Distribution ChannelsLess importance given to Promotional

activitieshigh price is one of the weaknessdisplay screen is poor

SWOT-opportunity+ThreatsOpportunities Untapped Markets- such as

In different developing countries

More Demand for luxury products from high end user

Demand for smart phones and tabs

Threats Strong Competition from

Samsung,Nokia Competition from other

small players in the market such as Local brands, Motorola etc.

Entry of new competitors Change in technology such

as introduction of ‘iphone’ by Apple

Some of the Implemented Strategies

• Joint Venture with Ericsson in 2001.

• Restructuring strategy in 2008 to recover from the financial losses.

• Introducing local propositions.

• Roadmap planning strategy in 2010.

Strategies• Global brand building capabilities

• Planning for consumer’s safety.

• Programs for understanding consumer’s insight.

• Planning for cultural integrity

Strategies:• Global workforce reduced by 3,150 from

target of 4,000• Estimated restructuring charges to be

close to Euro 400 million• Continue to build a leaner, flatter, more

responsive organization• Return to profitability• Build value market share• Focus on quality• Focus on smartphones

• Manvendra K. Dubey, Science for sustainability, Los Alamos National Laboratory, 2003

• Kotler, P. (2000). Marketing management. Upper Saddle River, N.J.: Prentice Hall.

• Hugos, M. (2003).Essentials of supply chain management. Hoboken, N.J.: John Wiley & Sons

• Winer, R. (2004). Marketing management. Upper Saddle River, NJ: Prentice Hall.

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