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(1) Porter’s Competitive Force Model
Competitive Rivalry:
Competitors from all over the world, like Sharp from Japan, LG from Korea
New mobile phone models are released frequently from other mobile phone manufacturers
Nearly all mobile phone brand has their own strong selling point, like Sharp has excellent screen quality, Nokia is reputed to its stable quality.
New Entrant
Intellectual property is concentrated among a few industry participants, creating barriers to entry for new entrants and limiting competition among phone manufacturers.
High established cost
High technology is required
Customer power
Sony Ericsson releases a wide range of product from high to low-tier. It gives customers broad choices to suit different needs.
There is a trend of changing new model of mobile phone within a short period of time
Sony Ericsson differentiates its product by its feature-rich and innovative mobile handset design. It successfully gains a large market share.
Supplier power
Sony Ericsson is a International reputable brand
Relatively good market coverage in the world when compared with LG, Sharp, Samsung
Fast response to market needs, always produces new products with ultimate design
Substitute products
Sony Ericsson produce its low and mid tier product in India to reduce the production cost. It allows them to produce more price competitive mobile phone.
The design of Sony Ericsson mobile phone is more fashionable and trendy when compared with Nokia and Motorola.
(2) SWOT Analysis
Strength:
– Strong financial backup
– Relatively good market share in the world when compared with NEC and Sharp
– International reputable brands
– Abilities for new technology invention
– Fast response to market needs, always produces new products with ultimate design
Weakness:
– Unstable product quality and not reliable
– High promotion and advertising cost
Opportunities:
– Increasing needs in using Mobile Phone and other advance technology in the world
– Rapid sale growth in the Chinese market
-Trend of changing new model of mobile phone within a short period of time
Threat:
– Direct competitions from other brand, such as Samsung and LG
– The development of 3G phone and the popularities is unknown
– The changing of telecommunication policies in different countries and cities might affect the business
(3) Competitive Strategies