Prepared By: Levi Tibke Clint Neshem Alisher Mukhamedjanov Travis Gao
Ericsson Introduction History Products Competitor Analysis Alternatives & Solutions SWOT Analysis Environmental Factors Recommendations & Conclusions
History Ericsson 1876 was found by Lars Magnus Ericsson in Stockholm, Sweden. Ericsson was a machine repair company. In 1878, Ericsson produced his first telephone. In 1881, Ericsson won two important bids. In 1892, Ericsson obtained huge progress in overseas business.
History In the early 1970s, the telecom industry began to enter the digital age. In the late 1970s, Ericsson’s digital exchange technology was in a one-up status. From 1980s to 1990s, Ericsson focused on the mobile communication system.
History Ericsson is the world’s largest communication network provider. Main business system: Ericsson Communication Network The professional Telecommunication Service Technical authority Enterprise systems Mobile Terminal Operation( 50% stocks of Sony Ericsson Mobile Communication Corporation)
Products Antennas Transmitters Wireless Infrastructure Cables Defense Electronics Software Bluetooth Technology Large producer of Cellular Phone through SonyEricsson
Ericsson World’s Leading Maker of Wireless Telecom Infrastructure Equipment Ranked #319 on 2006 list of Fortune Global 500 # 4 in Industry in Sales and Net Income in 2006 –$20.3 billion in sales –$3.2 billion in net income
Competitors FOUR MAJOR COMPETITORS Nokia Motorola Inc. Cisco Systems Alcatel-Lucent
NOKIA World’s Leader in Cellular Phone Production Focuses on Four main Business Segments –cellular phones –multimedia –networks –enterprise solutions Joined with Siemens in Network Equipment Industry leader in Sales and Net Income in 2006 –$54.2 billion in sales – $7.1 billion in net income
Motorola Inc. Focuses on Four Main Categories –Mobile Devices –Networks –Connected Home Solutions –Government and Enterprise Mobility # 2 Producer of Wireless Handsets # 2 in Industry in Sales and Net Income in 2006 –$42.8 billion in sales –$4.1 billion in net income
Cisco Systems Dominant Leader in Producing Equipment to Link Networks and Power the Internet Main Consumers are Large Corporations and Telecommunication Providers # 3 in Industry in Sales and Net Income in 2006 –$24.8 billion in sales –$5.5 billion in net income
Alcatel-Lucent Leading Global Supplier of High-Tech Equipment for Telecommunications Acquired Lucent Technologies in 2006 Focuses on Four Major Business Categories –Wirelines –Wireless Convergence –Enterprise –Services # 5 in Industry in Sales and Net Income in 2006 –$16.3 billion in sales –$1.2 billion in net income
Total Revenue
Strategic alternatives and solutions Green products Video gateway system Expanding on new markets Acquisition of other companies (merging)
Green Products Biofuel energy in cellular networks “Green” stations Resolve economic issues
Video Gateway System Transmitting video calls to the internet Video conferences Complete solution for all situations
Expanding on new markets NEW PRODUCTS: LCD monitors Video cameras MP3 players IPTV systems Failure on the marketing of cell phones.
Acquisition of other companies Telecommunication companies Tandberg Television Position on cable operator equipment market Greater presence on U.S. market Increase profits Cable market in 2010 => 60% of the $270 billion market
SWOT Analysis Strengths Solid customer relationship Leading technology Passion of operational excellence
SWOT Analysis Weaknesses Bad performance on handset division 1. Ericsson’s mobile phones updated very slowly 2. Low quality of products and big mistakes in making marketing and public relationship strategies 3. Slow reaction
SWOT Analysis Opportunities Ericsson: Sport Sponsorship Ericsson: Networked Media Opportunity Ericsson: Purchase Tandberg
SWOT Analysis Threats Threat from competitors 1. Threat from Chinese vendor - Huawei 2. Aggression by Nokia Financial troubles
Environmental Factors Employees need to know about the issues affecting the environment so the company is able to improve the environment and prevent pollution. Main focus for environmental control of this company is energy conservation. CO2 emissions.
CO2 emissions
Hazardous Substances Mercury-already removed from products Cadmium-banned from products and eventually will be removed from all. Hexavalent Chromium-in process of being banned. Lead-Banned from product use. Halogen-still used until an environmentally sound, technically feasible, and cost- effective product is produced.
Market Distribution
Net Sales and Growth 2005
Recommendations Broaden product horizons. Follow the technological advances and listen to the customers needs. Stay on top of the technology changes. Continue working to be at the top of the chain for environmentally friendly producers. Advertise products. Establish the company’s name worldwide to promote sales. Spread the locations of the company to establish a wider known company. Establish new technology that proves their products are safe to humans after long-term use (Ex. Radio waves.)
Works Cited About Us: Social Responsibility –Environment – Sony Ericsson Apr Alcatel-Lucent - Annual Income Statement Apr Cisco Systems - Annual Income Statement Apr < factsheet.xhtml. Economic Impacts. 23 Apr The Environment and Sustainability Apr Ericsson and the networked media opportunity Apr Ericsson Sport Sponsorships. 22 Apr Ericsson Summary Annual Report Ericsson video gateway system Apr Financial Highlights. 24 April Fitchard, Kevin. Green Base Station. 20 Nov Apr Fortune Global April History and the Culture April Investors. 24 April Life-Cycle Assessments Apr Maistre, Ray Le. Ericsson Targets Cable Revenues. 26 Feb Apr Motorola, Inc. - Annual Income Statement Apr Nokia – Annual Income Statement Apr < Signals Telecom Consulting Apr Telefonaktiebolaget LM Ericsson – Annual Income Statement Apr Telefonaktiebolaget LM Ericsson Company Profile. 26 Apr