Prepared By:
Levi Tibke
Clint Neshem
Alisher Mukhamedjanov
Travis Gao
Ericsson
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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
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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
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# 4 in Industry in Sales and Net Income in 2006
– $20.3 billion in sales
– $3.2 billion in net income
Competitors
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FOUR MAJOR COMPETITORS
Nokia
Motorola Inc.
Cisco Systems
Alcatel-Lucent
NOKIA
• World’s Leader in Cellular Phone Production
• Focuses on Four main Business Segments
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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
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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
Revenue
60
Dollars in Billions
50
40
30
2004
2005
20
2006
10
0
AlcatelLucent
LM
Ericsson
Cisco
Systems
Companies
Motorola,
Inc.
Nokia
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 costeffective product is produced.
Market Distribution
Net Sales and Growth 2005
Recommendations
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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. 2006. 23 Apr. 2007
<http://www.sonyericsson.com/spg.jsp?cc=global&lc=en&ver=4001&template=pc1_5_2&zone=pc&lm=pc1>.
Alcatel-Lucent - Annual Income Statement. 2007. 22 Apr. 2007
http://www.hoovers.com/alcatel-lucent/--ID__41751,period__A--/free-co-fin-income.xhtml.
Cisco Systems - Annual Income Statement. 2007. 22 Apr. 2007 <http://www.hoovers.com/cisco-systems/--ID__13494,ticker__--/free-co-finfactsheet.xhtml.
Economic Impacts. 23 Apr. 2007 <http://www.ericsson.com/ericsson/corporate_responsibility/economic_impacts/index.shtml>.
The Environment and Sustainability.2007. 24 Apr. 2007
<http://www.ericsson.com/ericsson/corporate_responsibility/environ_sustain/index.html>.
Ericsson and the networked media opportunity 2007. 22 Apr 2007 <http://www.globrand.com/2007/02/28/20070228-104240-1.shtml>.
Ericsson Sport Sponsorships. 22 Apr. 2007 <http://www.askmen.com/sports/business/10_sports_business.html>.
Ericsson Summary Annual Report 2006 http://www.globrand.com/2006/05/10/20060510-115118-1.shtml
Ericsson video gateway system. 2007. 25 Apr. 2007 <www.ericsson.com/products>.
Financial Highlights. 24 April 2007 <http://www.ericsson.com/ericsson/investors/financial_reports/2005/annual05/financial_highlights.shtml>.
Fitchard, Kevin. Green Base Station. 20 Nov. 2006. 25 Apr 2007 <www.telephonyonline.com/mag>.
Fortune Global 500 2006. 2007 22 April 2007
http://money.cnn.com/magazines/fortune/global500/2006/snapshots/1321.html.
History and the Culture. 2007. 20 April 2007
<http://www.ericsson.com/cn/ericsson/ericsson/century/index.shtml>.
Investors. 24 April 2007 <http://www.ericsson.com/ericsson/investors/>.
Life-Cycle Assessments. 2007. 23 Apr 2007 <http://www.ericsson.com/ericsson/corporate_responsibility/environ_sustain/lifecycle/index.shtml>.
Maistre, Ray Le. Ericsson Targets Cable Revenues. 26 Feb 2007. 25 Apr 2007 <www.lightreading.com/document>.
Motorola, Inc. - Annual Income Statement. 2007. 22 Apr. 2007
http://www.hoovers.com/motorola,-inc/--ID__11023,ticker__--/free-co-fin-factsheet.xhtml.
Nokia – Annual Income Statement. 2007 22 Apr. 2007 <http://www.hoovers.com/nokia/--ID__41820,ticker__--/free-co-fin-factsheet.xhtml.
Signals Telecom Consulting. 2007 24 Apr 2007 <www.signalsconsulting.com>.
Telefonaktiebolaget LM Ericsson – Annual Income Statement. 2007 24 Apr. 2007
www.hoovers.com/ericsson/--ID.xhtml.
Telefonaktiebolaget LM Ericsson Company Profile. 26 Apr. 2007
<http://biz.yahoo.com/ic/41/41776.html>.