The Mission and Vision statement of Sony Ericsson:

To provide quality end to end communication services to small and medium sized corporate business. "To experience the joy of advancing and applying technology for the benefit of the public."

Therefore, it can be said that Sony Ericsson's mission and vision is to become the communication entertainment brand. They achieve this by inspiring more people to not only communicate by use mobile applications such as entertainment, games & imaging. Sony Ericsson is successful as a mobile communications company as it integrates communication and entertainment in one. Sony Ericsson Mobile Communications is a joint venture by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to manufacture mobile phones. The stated reason for this venture is to combine Sony's consumer electronics expertise with Ericsson's technological knowledge in the communications sector. Both companies have stopped making their own mobile phones separately and started making phones combinedly as Sony Ericsson Mobile Communications. The mission and vision statement of Sony Ericsson is clearly reflected in the way they do business. By launching new technology-based products as 3G, 3GSM and Cybershot Mobile Phones, Walkman, Android, Smartphones etc. they spread new information-based mobile technology, mobile communications and mobile entertainment.

4 steps of strategy formulation:

1. Primary task: The main and primary task of Sony Ericsson
Mobile Communication is to make new technology-based mobile phones, smartphones, walkman, android etc. along with mobile applications and mobile games and delivering them to the people.

2. Determining Order qualifiers and Order winner:

Order Qualifiers: These are the characteristics of Sony Ericsson's products that qualify these products to be purchased by the customers. Order Winner: It is the characteristics of a product of Sony Ericsson that wins orders in the marketplace. Such as:

3. Positioning Strategy: It determines how the company will

compete in the marketplace.

4. Core Competencies:
Human Resources: One of the core competencies of Sony Ericsson is it's human resource. By employing creative and innovative employees and retaining them in the company assures Sony Ericsson a continuous culture of innovation with it's motivated employees. It is said that a workplace that allows workers to be creative is a positive environment desired by ingenuous and talented employees who are the cream of the crop of the company. Leadership in technological innovation: Sony Ericsson has established its leadership in mobile communications and mobile entertainment technology. The company launched Java 3D-enabled handsets, best 3G handsets voted by GSM association, Sony Ericsson's

Cybershot phone was awarded best 3GSM mobile handset. Innovation in partnership: It forges partnerships with content providers and developers such as Sony BMG for its entertainment capabilities. Sony Ericsson also engages itself with relevant sponsorships. In 2004 it sponsored the Women's Tennis Association tour, thus named as the Sony Ericsson WTA tour in 2005.

Competitive Strategies of Sony Ericsson:

This are the strategies on the basis of which Sony Ericsson competes with the competitors.

Competing on Quality: Sony Ericsson widely focuses on the quality of the product and services the company provides to its customers. Since Sony Ericsson is a renowned brand, people completely trust it on the quality questions. People tend to purchase Sony Ericssons products rather than other competitive brands because of the credibility of Sony Ericsson. The company ensures that it delivers full values to the customers in return of the value they are keeping from the customers.

Competing on Speed: Sony Ericsson also focuses on the speed of delivering products and providing services. As soon as the innovative team of the company develops new technological products, they release them on the market without wasting any time. And in case of providing services like repairing, replacement, re-assembling etc, the company ensures that the customers dont face any harassment and they dont have to wait for a long time.

Corporate Strategies of Sony Ericsson:

1. Marketing Strategy:
Global Mobile Phone Market: International Mobile Phone market is being growing at a tremendous rate. The global market share of Sony Ericsson Mobile Communication is 18.2% according to a study conducted in 2011. Customer analysis/ Target market: Gender: Male Female Lifestyle: College & University Youths Working Executives Geographical Profile: Urban, Semi-Urban & Rural Where there is mobile connectivity

Competitive Analysis: Direct competitors: Nokia LG Samsung

Motorola Other Chinese Brands Indirect Competitors: Walkie-Talkies, PDAs

Marketing Objective: Volume, Share: This study has been conducted on Bangladesh aspect. With the outstanding market potential the objectives on how much volumes and share are nearly limitless for the next few years. Since there is such a huge market that needs the supply of phones as long as you have a good brand image almost all, if not all of your stock should be purchased. However setting initial goal of 1 lac phones in Bangladesh is not unreasonable and not to cost problematic. This will also establish a decent market share. However the market share of individual phones is ever changing. Since Sony Ericsson is a company which dominates the market share (Nokia, Samsung & Motorola) and image. The company must be having at least 12-15% of market share in Bangladesh for this fiscal year & gradually improve to be no.1 in days to come and Sony Ericsson believes it is not at all impossible and ultimately

Grow by doing sales....Leading to....Growth in REVENUES!!!

Feature Tech Should Be Thought: Think global but act local:

A diverse market, like Bangladesh Every market is different and requires special actions Faster response to market needs Dealers as well as customers Planning and implementation to go hand in hand Decision making at field level Delegation at local level i.Sales activities and Schemes ii.Network coverage and expansion iii.Local marketing activities

Integration of all activities at the zone level (Sales, sales support, marketing & service) Dealer guidance, development and problem solving at the local level Specific strategies based on markets Reaching out to customers Delivering value GENERATING REVENUE

2. Operation Strategy of Sony Ericsson: Cost efficiency and performance improvement Focus on companys core business Increasing shareholder value Continuous process improvement Maintaining competitive edge Improving customer service quality

Drawing on the strength of the full Highlights strategy and change practice Operations Strategy is one of the four competencies within Sony Ericssons larger Strategy and Change team. The three parallel competencies are Business Strategy, Organization Change Strategy and Technology Strategy. Operations Strategy helps clients resolve a variety of critical issues from strategy and planning to day-today operational improvements. Our practitioners specialize in identifying the capabilities that are required to execute business strategies and in dening how operational models should be congured, implemented, and continuously improved. With deep experience in operations strategy, we provide clients with the support needed to address the operational issues that are crucial to success.

 Migration to new technology Product innovation management Merger synergy realization. Our experience in successfully formulating and implementing operations strategies lies in three main areas: Helps clients address critical business issues Utilizes a proven approach to Operations Strategy projects provides a breadth and depth of offerings Helps provide significant value to a wide range of clients. Helping clients formulate operations strategies that align corporate and business strategy with organization, technology and process strategy Providing process expertise for business process change, reengineering and operational improvement, cost reduction, Six Sigma, innovation management, and post-merger integration Assisting clients with outsourcing.

3. Financial Strategy of Sony Ericsson:

Sony Ericsson today presented a series of new initiatives designed to build on its previous three-year revitalization plan and to position the company as the leading global provider of networked consumer electronics and entertainment. In particular, the company will focus on strengthening core businesses, enhancing network initiatives and leveraging international growth opportunities to build for the future and drive further growth and profits. In addition, Sony Ericsson announced the following key mid-term goals: - Expand our mobile, Smartphones related products and component/semiconductor businesses into "trillion yen businesses**," joining digital imaging (digital cameras and camcorders), game and mobile phones and raising the total number of "trillion yen businesses" to seven.

- Ensure that 90% of our electronics product categories are networkenabled and wireless-capable by the fiscal year ending March 31, 2011 ("FY2010"). Double annual revenue from BRIC (Brazil, Russia, India, China) countries to 2 trillion yen*** by FY2010

Sony Ericsson has identified a 5% operating margin as a baseline of profitability to generate cash to continue to lead and innovate. Furthermore we will target an annual return on equity of 10% by FY2010. Sony Ericsson is also planning to allocate a total of 1 trillion yen to invest in and build key businesses and technologies over the next three years. Highlights are as follows:

Further Strengthen Our Core Businesses 1. Expand content and services available on the network platform 2. Continue to expand the PS3 customer base through the strength of Smartphones and Androids. 3. Accelerate PS3 sales through upcoming key franchise software titles 4. Continue PS3 cost reduction initiatives

Network Initiatives
Sony Ericsson will increase network and wireless connectivity across its family of devices and build a service platform to provide a seamless user experience across our key hardware devices and content. Capitalize on Growth in BRIC Countries and Other Emerging Markets Because Sony Ericsson believes that the largest growth opportunities exist outside its traditional markets of Japan, North America and Europe, expanding Sony's business into new markets is a key area of focus. New markets in regions including the BRIC countries - Brazil, Russia, India and China - are developing quickly, and Sony Ericssons business in these countries is growing rapidly. Going forward, Sony

Ericsson plans to accelerate business expansion through collaboration and integration within each of the Electronics, Game and Pictures segments.

Environmental Initiatives - Green Management 2010

"Green Management 2010" is a series of mid-term environmental targets that are guiding the Sony Ericsson in its efforts to help prevent global warming, recycle resources, ensure appropriate management of chemical substances and address a broad range of other environmental issues. Through these initiatives, Sony Ericsson is striving to achieve an absolute reduction in greenhouse gas emissions, specifically a 7% or greater reduction in CO2 emissions by FY2010 compared to the level of FY2000.

Financial Strategies for the Mid-Term

In order to generate funds to continue to grow and innovate, Sony Ericsson has identified a 5 percent operating margin as a baseline of profitability. The company is also establishing return on investment capital as a fundamental framework for evaluating capital investments and potential acquisitions across the company to ensure the optimum use of resources. Our targeted investment (an aggregate of 1 trillion yen by the end of FY2010) will put Sony in a position to drive further growth and innovation over the next three years and beyond. Sony Ericsson will also target an annual return on equity of 10% by FY2010. Going forward, we will work to deliver a stable, high level of profitability while enhancing shareholder value. The business environment in which Sony Ericsson operates is changing rapidly and, with the advance in digital technology and technological innovation is moving at a pace never experienced before. In order to be a leading company in the digital age, Sony Ericsson aims to leverage its unique advantage of producing both hardware and content, continuing to offer cutting-edge products together with superior content and services to meet the needs and expectations of our customers.

Strategic Decisions that Sony Ericsson has to make in operation:

1. Product and services:

The kind of products and services offered by Sony Ericsson drive its operation strategy. Among the three classes of product and services, Sony Ericsson follows the Make-to-Stock strategy. These products and services are designed and produced for Standard customers in anticipation of demand. Shelved are restocked with the items, and customers choose from among the products or service available for purchase. Critical operations issues are forecasting future demand and maintaining inventory levels that meet customer service goals.

2. Processes and technology:

Sony Ericsson follows Batch Processing production system since the volume of products it produces is high.

3. Capacity and Facilities:

Sony Ericsson is concerned about when, how much and what form to alter capacity since they are critical decisions. The overall capacity of Sony Ericsson is divided in individual facilities. Strategic decisions of Sony Ericsson include determining how the demand should be met at the point of time- with larger facilitation, or with a smaller one, and whether facilities should focus on serving certain geographic regions, product lines or customers. Facility location is also a strategic decision of Sony Ericsson while it concerns global expansion. If items are to be made as well as sold in foreign countries, what kind of relationship is needed with manufacturers in the foreign counties - in this case, by establishing a joint venture with the foreign manufacturers.

4. Human Resources:
Strategic issues in human resources involve determining the skill levels and degree of autonomy required to operate the production system, outline training requirements and selection criteria, and setting up policies on performance evaluations, compensation and incentives.

5. Quality:
Quality permeates virtually every strategic decision. It determines the target level of quality of the products and services, how will it be measured, how will employees be involved with quality, the types of training necessary, the responsibilities of the quality department, types of systems will be set up to ensure quality, how the quality awareness will be maintained, how quality efforts will be evaluated, how customer perceptions of quality will be determined, how decisions in other functional areas will affect quality.

Balanced Scorecard of Sony Ericsson

The balanced scorecard is developed by examining Sony Ericssons performance in four critical areas finance, customer, processes, learning & growing.

More than financial measures are used to assess performance with the balanced scorecard. Sony Ericsson focuses on how efficiently its assets are managed, products produced & services provided affects the financial health of the company. Identifying and understanding targeted customers help determine the processes & capabilities Sony Ericsson Mobile Corporation must concentrate on to deliver value to the customer. The companies abilities to improve those processes & develop competencies in new area are critical to sustain competitive advantage.

Evaluation of Financial Performance of Sony Ericsson According to its balance scorecard: Quarterly financial announcements Sony Ericsson reports third quarter 2011 results (14 October 2011):

Income before taxes was Euro 31 million 33 percent increase in sales quarter-on-quarter Smartphones account for more than 80 percent of total sales

The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2011 is as follows: Q3 2010 Number of units shipped (million) Average selling price (Euro) Sales Euro m.) Gross margin(%) Operating income (Euro m.) Operating margin(%) Restructuring charges (Euro m.) Operating income excl. restructuring charges (Euro m.) Operating margin excl. restructuring charges (%) Income before taxes (IBT)(Euro m.) IBT excl. restructuring charges (Euro m.) Net income (Euro m.) 10.4 154 1,603 30% 63 4% 4 67 4% 62 66 49 Q2 2011 Q3 2011 7.69.5 156166 1,193 31% -37 -3% -37 -3% -42 -42 -50 1,586 27% 38 2% 38 2% 31 31 0

Bert Nordberg, President and CEO of Sony Ericsson commented, We delivered a solid 73 million Euro improvement in income before taxes as we rebounded from the previous quarter with a 33 percent increase in sales. Android-based Xperia smartphone sales

now account for more than 80 percent of sales and we have shipped 22 million Xperia smartphones to date. We will continue to invest in the smartphone market, shifting the entire portfolio to smartphones during 2012. Units shipped during the quarter were 9.5 million, a 9% decrease year-on-year due to a decline in feature phone shipments, partially offset by an increase in smartphone shipments. The 25% quarter-on-quarter increase was due to the higher volume of smartphones shipped. Average selling price (ASP) for the quarter was Euro 166, up 8% year-on-year and 6% sequentially. The year-on-year increase was due to the shift to smartphones and geographic mix despite a negative effect from foreign exchange rates. The sequential increase was due to product and geographic mix. Sales for the quarter were approximately Euro 1.6 billion and essentially flat year-onyear. The gross margin percentage for the quarter was 27%, a decrease of 3 percentage points year-on-year and 4 percentage points from the previous quarter. The year-on-year decrease in margin is attributed to product and geographic mix. The sequential decrease in margin was due to inventory-related adjustments and product and geographic mix. Income before taxes for the quarter was Euro 31 million, compared to income before taxes of Euro 62 million for the same quarter in the previous year. Loss before taxes for the previous quarter was Euro 42 million. The sequential improvement was reflective of higher sales and lower operating expenses, while the year-on-year decline was due to lower gross margin percentage offset by lower operating expenses. Net income during the quarter improved by Euro 50 million sequentially, while net income decreased by Euro 49 million year-on-year. Income taxes recorded during the quarter reflect the distribution of profits and losses between various jurisdictions and tax adjustments. Minority interest reflects higher net income at a majority-owned joint venture company. Cash flow from operating activities during the quarter was Euro 53 million. External borrowings of Euro 51 million were repaid during the quarter, resulting in total borrowings of Euro 718 million at the end of the quarter. Total cash balances at September 30, 2011 amounted to Euro 466 million. Sony Ericsson estimates that its share of the global Android-based smartphone market during the quarter was approximately 12% in volume and 11% in value. Sony Ericsson maintains its forecast for modest industry growth in total units in the global handset market for 2011.

Sony Ericsson reports second quarter 2011 results (15 July 2011)

Supply chain constraints from the Japan earthquake significantly impact Q2 results Smartphones account for more than 70 percent of total sales Android-based Xperia volume up 150 percent year-on-year

The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the second quarter ended June 30, 2011 is as follows: Q2 2010 Number of units shipped (million) Average selling price (Euro) Sales (Euro m.) Gross margin (%) Operating income (Euro m.) Operating margin (%) Restructuring charges (Euro m.) Operating income excl. restructuring charges (Euro m.) Operating margin excl. restructuring charges (%) Income before taxes (IBT) (Euro m.) IBT excl. restructuring charges (Euro m.) Net income (Euro m.) 11.0 160 1,757 28% 36 2% -32 68 4% 31 63 12 Q1 2011 Q2 2011 8.1 141 1,145 33% 19 2% 19 2% 15 15 11 7.6 156 1,193 31% -37 -3% -37 -3% -42 -42 -50

Bert Nordberg, President and CEO of Sony Ericsson commented, Sony Ericssons second quarter profitability was affected by the March 11 earthquake in Japan. We estimate that the impact of earthquakerelated supply chain constraints on our portfolio was close to 1.5 million units, with most of the effect in the early part of the quarter. Our shift to Android-based smartphones continues with smartphone

sales accounting for more than 70 percent of our total sales during the quarter. We have shipped more than 16 million Xperia smartphones to date. We have introduced eight new Xperia smartphones this year and we continue to see strong consumer and operator demand across the Xperia smartphone portfolio. Units shipped during the quarter were 7.6 million, a 31% decrease year-on-year and a 6% decrease sequentially, due to a decrease in volume caused by constrained supply of critical components and an anticipated decline in the number of feature phones shipped. Average selling price (ASP) for the quarter was Euro 156, a 3% decrease year-on-year but an 11% increase sequentially. The year-onyear decrease is due to product and geographic mix and price erosion. The sequential increase in ASP is attributed to favorable product and geographic mix, more than offsetting price erosion and unfavorable foreign exchange rates. Sales for the quarter were Euro 1,193 million, a 32% decrease year-on-year and a 4% increase sequentially. The gross margin percentage for the quarter was 31% with an improvement of 3 percentage points year-on-year that included restructuring charges, and a decrease of 2 percentage points from the previous quarter, which included the benefit of some larger than normal items relating to royalty matters and warranty estimates. Loss before taxes for the quarter was Euro 42 million, compared to an income before taxes of Euro 31 million for the same quarter in the previous year, due to lower volume. Income before taxes for the previous quarter was Euro 15 million. The sequential change was reflective of lower gross margin and higher operating expenses. The quarter ended in a net loss of Euro 50 million, compared to a net income of Euro 12 million in the same quarter in the previous year, and Euro 11 million in the last quarter. Tax expenses in this quarter included the impact of tax adjustments and the distribution of profits and losses between various jurisdictions. Cash flow from operating activities during the quarter was negative Euro 224 million, mainly due to increases in accounts receivables and inventories, negative net income and timing of certain payments. New external borrowings of Euro 165 million were made during the quarter to enhance liquidity and growth, resulting in total borrowings of Euro 769 million at the end of the quarter. Total cash balances at June 30, 2011 amounted to Euro 516 million. Sony Ericsson estimates that its share in the global Android-based smartphone market during the quarter was approximately 11% in volume and 11% in value. Sony Ericsson maintains its forecast for modest industry growth in total units in the global handset market for 2011.