DEVELOP VISION, MISSION, OBJECTIVES AND MEASURES
Sony Ericsson’s Vision, Mission and Objectives
Sony Ericsson’s Mission
The Company’s mission is ‘to establish Sony Ericsson as the most attractive and innovative global brand in the mobile handset industry.’ The job was to strategically position Sony Ericsson as the world leader in telecommunications through the combined strengths of the parent companies: Sony by means of providing the immeasurable experience in consumer electronics and entertainment and Ericsson through its extensive consumer base and mobile technology.
Sony Ericsson’s Vision
As the Company envisions itself as a sustainable company of the future, Sony Ericsson aimed at being in the forefront of innovation as it expects to gain the momentum through development of the 3G market (Sony Ericsson, 2005; Freedman, 2004). As such, Sony Ericsson envisions the company to acquire a strong and respected presence in the mid/high segment with exclusive and “I want it” products.
Sony Ericsson’s Objectives
Primarily, the objective of the company is to become one of the top three players in the mobile industry. Profitable expansion is one of its long-term objectives. A 50:50 joint venture, Sony Ericsson purports to create innovative, market-leading products and services in partnership. Sony Ericsson is developing and producing sophisticated, less expensive mobile phones that are simple to use. In simpler terms, the objectives of Sony Ericsson are to focus on the management of revenue-generating opportunities inherent in the mobile marketplace, to leverage marketing and promotional activities on a global basis and to focus on building value through the management of own global supply chain (Steinbock, 2005, p. 156).
Sony Ericsson’s Ethical, Cultural and Environmental and Social Backgrounds Discussion
Ethical Background
At Sony Ericsson, sound ethics is incorporated into all aspects of the business from human resource management to product designs to supplier requirements down to community outreach programs. Sony Ericsson upholds its corporate social responsibility especially in ethical treatment of their most important asset which is the people. The Company conforms to highest forms of respect for human rights and is accounted responsible in complying with applicable business laws and regulations. As such, the Company had developed its corporate social responsibility code since its inception in 2001. Such code ensures that employees at all levels are governed to make ethically correct decisions that are needed in performing job requirements and expectations on a daily basis.
As already mentioned, the ethics policy also covered the suppliers wherein supplier social responsibility code oversees the conduct of Sony Ericsson’s suppliers especially the first level suppliers. For the Company, quality is a norm that should be integrated and realised on a practical level and so ethical standards must be properly implemented in terms of business dealings. Suppliers are also expected to comply with the code particularly in aspects of providing a safe workplace for the employees and respecting basic human rights. In terms of its supplier management, Sony Ericsson ensures that all suppliers are acting in accordance with environmental and CSR requirements. For instance, suppliers should have clear policies in mining tantalum element.
Cultural and Environmental Background
According to Bergvall (2006), brands are both cultural as much as managerial concepts, and Sony Ericsson is not an exemption. Sony Ericsson is an emblem of a multilevel cultural forces affecting and being affected by the brand creation process itself (p. 186). The interaction between cultural cornerstones and Sony Ericsson has environment as one of its underpinnings. For instance, the environmental nature of Sony Ericsson is realised in four basic aspect of environmental sustainability: conscious design, energy, recycling and health.
Sony Ericsson, at the onset, takes full responsibility in sustainable product development through its GreenHeart™ concept. The concept centers the idea that all produce are environmentally-friendly in its entire life cycle. The goal is to take part in the world’s fight against natural environment contamination and global resource consumption and emissions. As part of the precautionary principle as well, chemical substances that are hazardous to human health and environmental wellbeing are constantly being monitored, leading to phasing out of these chemicals whenever necessary. Manufacturing of the products also complies with the Electronic Commerce Directives. Reviews of the designs before products are made publicly available are critical through an environmental coordinator.
Reducing energy consumption and CO2 footprints is Sony Ericsson’s way of partaking in the global sustainability. Contrary to other mobile companies focus on the actual products, Sony Ericsson focuses on chargers as the Company believes that chargers contribute mostly to energy emissions. Important for Sony Ericsson is to communicate how to minimise the waste of energy to the people, a part of the Integrated Product Policy (IPP). The newest range of models is manufactured in compliance with the requirements of European Union’s (EU) Code of Conduct and Energy Star. Lowering of energy consumption is an initiative that is being trickled down on its manufacturing sites as part of the Company’s goal to reduce carbon emission in all activities. As committed as it is, the Company also commends an environmental product declaration which provides environmental details of the product.
Sony Ericsson launched an environmental warranty that makes certain products are being managed and disposed in an environmentally sound way. Recycling is one significant factor for Sony Ericsson as it manifest the extent to which the Company takes responsibility of its products. Sony Ericsson is enveloped in various recycling schemas nationally, regionally like EU’s directive on waste electrical and electronic equipment (WEEE) and globally such as the United Nations Environmental Program (UNEP). Inside the Company, the ‘take back’ programme was realised wherein the Company measures the effectiveness of voluntary collection and recycling. When no longer needed, mobile phones undergo product asset and financial asset recovery wherein these products are being refurbished and resold.
High safety standards of the design have direct implications on the quality of life and wellbeing of end users that is why Sony Ericsson is committed in complying with standards and regulations. It is well understood at Sony Ericsson that phone models must be assembled with compliance on government health and safety regulations. For instance, the Company implements Specific Absorption Rate (SAR) testing by utilising standardised methods. Environmental requirements also include nickel information, by which Sony Ericsson willingly adhered into. Thereby, the surface parts of the mobile phones are all nickel-free and the Company continually addresses how nickel could be secured so as not to have direct, intentional and unintentional contact with the user.
Social Background
Sony Ericsson also creates a synergism with national, regional and international organisations. It is of Sony Ericsson’s best belief that the mobile technology could provide and bring new benefits and opportunities not just to the users but for the society in general. Sony Ericsson unites with the Columbia University Earth’s Institute in spearheading the project Millennium Villages. Such a project purports to reach 400, 000 people in developing countries through the combined power of the Internet and mobile communications. In realising the mobile phones’ capability into social and ethical use, phones are given to community health workers to aid in performing their duties specifically in rural communities.
Other socially-relevant projects that Sony Ericsson engaged into are the co-development of solar chargers, the mobile phone connectivity for refugees and the internal outreach programmes with Stanford University as the collaborator. The first is an outgrowth of the Millennium Villages project wherein solar chargers are developed and distributed in rural communities. Dubbed as the Village solar charger, Sony Ericsson had built this with standard components and which can be used for all types of mobile devices. The second project aimed at connecting refugee camps to mobile networks for the purpose of family reunification, education, healthcare and economic activity. This was carried out with the help of The United Nations High Commission for Refugees (UNHCR). For the third project, the Sony Ericsson engineers and Stanford University educators developed special software which could use the P990i smartphone model. This was intended for universities in Uganda, Tanzania and South Africa in its interactive international environmental education course.
Summary of Lynch Polygon of Purpose
Time – The establishment of Sony Ericsson is both a short-term and long-term objectives where the idea is to create a win-win situation for both Sony and Ericsson. The short term goal is to become a leader in imaging and connectivity while the long-term goal is to be a dominant player in the mobile phone industry worldwide. In the Q4 2008 and annual report of 2008, Sony Ericsson highlights achievement such as contracted consumer demand, initiated additional Euro 300 million in cost savings, joined Open Handset Alliance and developed new model using Android Open Source Software and successful roll out of Xperia™ X1, Cyber-shot™C905 phones and PlayNow™ plus music service.
Timing – Sony Ericsson embraces a broad platform sharing (Uggla and Verrick, 2008) where the focus is on anticipating the rivals’ moves. Although the Company is not very particular with the first-in approach, Sony Ericsson takes a more conservative approach but of optimal performance to the products. At the 2008 Mobile World Congress, Sony Ericsson announced the new naming system where suffixes are used to denote a particular market.
Innovation – Sony Ericsson has an array of mobile brand portfolio. As a brand-based business development enthusiast, the Company continuously rethink its brand portfolio strategy and how new product categories can subvert incumbent brands as part of strategic brand management. A Business Week report in September 2008 features Sony Ericsson and Play Now Plus as answers to Nokia’s Comes With Music and Apple iPhone.
Value-added – Sony Ericsson products are equipped with various features, accessories and applications as part of its value-added services. Value added products are also introduced in each market from voice to high end smart phones. In 2007 Media and Business Summit, Sony Ericsson phones are introduced by using PlayStation’s XMB.
Survival – The Company is amenable. In Q1 2008, profits fell significantly by 43% and market share dropped by 7.9% but in Q3 2008, Sony Ericsson was still named as the third largest mobile phone manufacturer in the world.
Growth – Although the Company did not realised an impressive financial report in 2008, there is a considerable growth in the network technology. Sony Ericsson continually taps business opportunities on digital networks, analogue networks, cellular, 3G and ITU.
Leadership – Industry standard setting is another goal of Sony Ericsson. Hence, the Company is a leader in environmental considerations of meeting the same stringent environmental requirements. In January 2008, there are four hazardous chemicals that had been phased out namely HFR, Antimony, Beryllium and Phthalates.
Stakeholders – Sony Ericsson produces necessary information for their stakeholders such as the environmental declarations, product material declarations as responses to the information requirement of media, officials, recyclers and other stakeholders and new question on other substances.
Lifestyle and value – Dubbed as the Company with the Green Heart, Sony Ericsson relies on its core values such as credible, sincere, long term and business driven. Nevertheless, Sony Ericsson combines with various institutions in realising the CSR; that is, implementing social projects in 2007 and 2008.
Knowledge – Informations are available as Sustainability Policy, Design for Environment Goals, Generic Requirements Specification of Design for Environment, List of Banned and Restricted Substances and Supplier Social Responsibility Code.
Evaluation of Sony Ericsson’s Mission
Emergent approach
Evidently, Sony Ericsson was a product of the consolidation of two dying divisions of the parent companies being Sony and Ericsson. They have entered a strategic alliance as a unit which will be devoted in producing handsets which will attract the consumers and uplift the position of the parent companies. Sony Ericsson makes use of its parent companies extensive knowledge and expertise towards becoming a global industry leader. The joint venture which is both task-oriented and equal aimed at contributing an established Sony Ericsson brand, its core mission. As such, their innovativeness and attractiveness were made possible by the combined utilisation of each other’s assets, knowledge and possibilities.
Prescriptive approach
Instead of dwelling on the cultural conflict of the parent companies (Sony being Japanese and Ericsson being Swedish), Sony Ericsson focuses on the global thinking in reliving its mission. The strategies that the people at Sony Ericsson applied are centered on aiming toward the future of the company as an independent body. In building the global brand culture inside the Company, Sony Ericsson strategised into creative and differentiated approach to integration. Sony Ericsson utilised a self-made change program without interventions from outside consultants. There are three elements that contribute in the achieving the mission: distinct design, technology transfer and narrowing cultural gaps.
Five elements
Applying a prescriptive approach to its Mission statement, Sony Ericsson embraces these five elements in making its mission a reality: timing, innovation, value-added, growth and knowledge. The objectives of the Company are acquiescent to what specific purpose the company is trying to accomplish. Whether long- or short term, Sony Ericsson strives at creating a win-win situation for all the stakeholders. As much as possible, the Company always aimed at introducing new products that will suit the requirements of the end-users. It is important for the company to offer, for instance, the most environment-friendly phones and best energy efficient chargers. Not only the features and accouterment of the mobiles, Sony Ericsson also attempts to produce products that are accessible and highly utilisable for every segment. Value-added is also realised in their reverse logistics services through voluntary take back initiative. Growth in terms of operational aspect is also consistent with the mission as evidenced by the continuous roll out of new products such as the Cyber Shot series. Intelligence is also important in putting-into-action the mission where data flows had its confirmation in terms of reports and policies.
Critical Discussion of Trade-offs relating to Sony Ericsson’s Objectives
Short term
Long term
Initiate additional Euro 300 million in cost savings by end of 2009
Continuously roll out hit products like Cyber Shot
Continuously reduce CO2 emissions at manufacturing sites and at all levels
Be a dominant player in the global telecommunications industry
Penetrate new market segments
Increase market share
Profit margin
Competitive position
Sales were reported at Euro 2, 914 million, an increase of 4% probably because of the positive impact of currency fluctuations
Third largest mobile phone manufacturer in the world
Profit objective
Non-profit objective
Increase the profits by 10% by end of 2009
Increase the number of units to be sold by 26 million by end of 2009
CSR initiatives such as Millennium Villages project as well as co-development of solar chargers, mobile phone connectivity for refugees and internal outreach programmes with Stanford University as the collaborator.
Related opportunities
Non-related opportunities
GreenHeart concept
Analysing and verifying Sony Ericsson products from an environmental perspective
Improving mobile communication networks
Industry accolades
Sporting event sponsorships
Market penetration
Market development
Take advantage of the diversified region, catering to every segment
Penetrate strong emerging markets such as India and China
Introduce value-added product to every segment
Capitalise on the strong brand image of Sony
Have a stronger channel network
Risk avoidance
Risk taking
Accurate intelligence reporting
Industrial espionage and hacking
Phasing out of models as a strategic brand management
Widening the product portfolio despite the presence of other dominant players
References
Bergvall, S 2006, ‘Brand ecosystems: multilevel brand interaction,’ in J E Schroeder, M Salzer-Morling and S Askegaard, Brand Culture, Taylor and Francis, New York, pp. 186-196.
Freedman, M 2004, ‘Good call?’ Forbes Magazine, vol. 174, no. 11, p 130, 29 November.
‘No short cuts,’ Teledotcom Asia¸ retrieved on 16 February 2009, from http://wwwen.zte.com.cn/.
Sony Ericsson Mobile Communications 2005, retrieved on 16 February 2009, from http://www.sonyericsson.com.
Sony Ericsson Global Activation Press Release 2008, retrieved on 16 February 2009, from www.irisnation.com/feeds/SE_Global_Activation.pdf.
Steinbock, D 2005, The Mobile Revolution: The Making of Mobile Services Worldwide, Kogan Page Publishers.
Uggla, H and Verick, H 2008, ‘Strategic brand management decision: the case of Sony Ericsson,’ Strategic Direction Journal, vol. 24, no. 9, pp. 3-5.
Credit:ivythesis.typepad.com
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