abhishreshthaa
Abhijeet S
here are some points on RISE AND FALL OF ERICSON..
WHERE DOES IT LACK:
:SugarwareZ-143:
- ERICSON - THE RISE AND FALL :
- Ericsson, enjoyed immense success until the 1990s.
- The company was amongst the pioneers in the telecom industry
- Yet, it could not adapt to the changes in consumer tastes and preferences in the late '90s. Ericsson failed to adapt its mobile handsets to consumer tastes, and this led to a fall in sales of its handsets.
- Its competitors meanwhile took over Ericsson's space in the market.
- As sales fell, Ericsson's other businesses were also affected.
- Finally the company adopted some tough measures to restrict the downslide in its sales.
- Ericsson understood that it was a company that was good at manufacturing good quality and high technology equipment, but was not good at marketing its products to individual customers.
- Therefore Ericsson entered into a joint venture with Sony to form Sony Ericsson, as its new mobile handset unit.
- Ericsson also restructured itself.
- Unprofitable or unmanageable businesses were sold off and some new companies were acquired to fill in the gaps in its product range.
- Eventually, in 2003, the company once again registered profits.
WHERE DOES IT LACK:
- understand the factors that caused the slide of a successful company
- Understand how important it is even for a successful company to keep changing with changing times
- Understand the importance for a company to be more customer-centric and less product-centric
- Understand the strategies that a company has to use if it wants to be successful in competitive times
:SugarwareZ-143: