AshishSony playing catch-up in emerging markets
Sony Ericsson posted a 33 percent growth in Q2 taking LG's place which is not the fourth lasgest mobile handset maker worldwide. This growth was mainly pushed up by mid-to-high-end Walkman phones.
To ensure continuous growth, Sony Ericsson needs to make a bigger play in market already ruled by Motorola and Nokia. It has dipped its toes in this arena before, launching GSM phones in China which have given it a marginal gain. Its hedging on India now with its first setup at Bangalore which is specifically R&
.
According to market analysis ,Sony Ericsson is like 10yrs behind Nokia and years behind the aggressive Motorola. Can this handset maker ensure that it does not fall flat in the face of two giants?.
Analysis
After reading through more analysis and news ,I made 2 diagnosis which i would like to share with the readers.
Diagnosis 1:
Although Sony Ericsson now boasts a solid portfolio and brand equity, it suffers from an under-developed distribution network in countries like India. The company seems to be experiencing from prolonged hangover from its pre-merger trouble.
Diagnosis 2:
It has lost the key ingredient "innovation" roots of both Sony and Ericsson. If it has to stay in market it has to go for a long term approach. The answer to this will be clearer only if Sony Ericsson stops making cheaper phone to cover more market and starts thinking of mobile solutions for poor. It should keep in mind with the future compatibility.
If you enjoyed this post Subscribe to the Free ItBusinessAnalyis Newsletter or Feed It through RSS Feed it to your home page .Leave a comment to this post tell what you think about the post and interact with author and fellow readers.
To ensure continuous growth, Sony Ericsson needs to make a bigger play in market already ruled by Motorola and Nokia. It has dipped its toes in this arena before, launching GSM phones in China which have given it a marginal gain. Its hedging on India now with its first setup at Bangalore which is specifically R&
.According to market analysis ,Sony Ericsson is like 10yrs behind Nokia and years behind the aggressive Motorola. Can this handset maker ensure that it does not fall flat in the face of two giants?.
Analysis
After reading through more analysis and news ,I made 2 diagnosis which i would like to share with the readers.
Diagnosis 1:
Although Sony Ericsson now boasts a solid portfolio and brand equity, it suffers from an under-developed distribution network in countries like India. The company seems to be experiencing from prolonged hangover from its pre-merger trouble.
Diagnosis 2:
It has lost the key ingredient "innovation" roots of both Sony and Ericsson. If it has to stay in market it has to go for a long term approach. The answer to this will be clearer only if Sony Ericsson stops making cheaper phone to cover more market and starts thinking of mobile solutions for poor. It should keep in mind with the future compatibility.
If you enjoyed this post Subscribe to the Free ItBusinessAnalyis Newsletter or Feed It through RSS Feed it to your home page .Leave a comment to this post tell what you think about the post and interact with author and fellow readers.
