Sony Ericsson: Marketing the Next Music Phone SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sony Ericsson: Marketing the Next Music Phone
Coming off its global success of marketing mobile handsets which featured embedded digital cameras, Sony Ericsson planned to launch a new series of handsets which featured digital music playback capabilities in 2005. Beginning in 2004, Sony Ericsson's competitors, such as Motorola and Nokia had begun to develop digital music content delivery and mobile handset strategies, at the same time Sony Ericsson was developing its own. The case illustrates some of the issues that mobile phone, or more broadly, consumer electronics manufacturers and distributors need to take into consideration when developing product management and product marketing strategies for new products in developing categories. The case also attempts to highlight some of the complexities that exist in marketing "convergent" products, where service delivery partnerships and competition with non-traditional handset vendors needs to be taken into consideration. Finally, the case also focuses on the strategic use of cross-product brand extensions where, in reality Sony Ericsson ended up licensing the Sony "Walkman" brand name to promote what has ended up being a successful line of music oriented mobile handsets.
Swot Analysis of "Sony Ericsson: Marketing the Next Music Phone" written by Qiu Cheng, Zane Moi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sony Ericsson facing as an external strategic factors. Some of the topics covered in Sony Ericsson: Marketing the Next Music Phone case study are - Strategic Management Strategies, International business, Product development, Technology and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Sony Ericsson: Marketing the Next Music Phone casestudy better are - – increasing energy prices, there is backlash against globalization, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, increasing commodity prices, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation,
increasing transportation and logistics costs, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Sony Ericsson: Marketing the Next Music Phone
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sony Ericsson: Marketing the Next Music Phone case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sony Ericsson, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sony Ericsson operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Sony Ericsson: Marketing the Next Music Phone can be done for the following purposes –
1. Strategic planning using facts provided in Sony Ericsson: Marketing the Next Music Phone case study
2. Improving business portfolio management of Sony Ericsson
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Sony Ericsson
Strengths Sony Ericsson: Marketing the Next Music Phone | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sony Ericsson in Sony Ericsson: Marketing the Next Music Phone Harvard Business Review case study are -
Strong track record of project management
– Sony Ericsson is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Sales & Marketing industry
– Sony Ericsson: Marketing the Next Music Phone firm has clearly differentiated products in the market place. This has enabled Sony Ericsson to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Sony Ericsson to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Sony Ericsson are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Effective Research and Development (R&D)
– Sony Ericsson has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Sony Ericsson: Marketing the Next Music Phone - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Sony Ericsson has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Sony Ericsson: Marketing the Next Music Phone HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Sony Ericsson in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Sony Ericsson has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sony Ericsson to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Sony Ericsson digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sony Ericsson has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of Sony Ericsson in the sector have low bargaining power. Sony Ericsson: Marketing the Next Music Phone has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sony Ericsson to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Sony Ericsson is one of the most innovative firm in sector. Manager in Sony Ericsson: Marketing the Next Music Phone Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Sony Ericsson is present in almost all the verticals within the industry. This has provided firm in Sony Ericsson: Marketing the Next Music Phone case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Analytics focus
– Sony Ericsson is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Qiu Cheng, Zane Moi can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Sony Ericsson: Marketing the Next Music Phone | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sony Ericsson: Marketing the Next Music Phone are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sony Ericsson: Marketing the Next Music Phone, in the dynamic environment Sony Ericsson has struggled to respond to the nimble upstart competition. Sony Ericsson has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Sony Ericsson products
– To increase the profitability and margins on the products, Sony Ericsson needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sony Ericsson is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sony Ericsson: Marketing the Next Music Phone can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Sony Ericsson: Marketing the Next Music Phone HBR case study mentions - Sony Ericsson takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Sony Ericsson: Marketing the Next Music Phone that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Sony Ericsson: Marketing the Next Music Phone can leverage the sales team experience to cultivate customer relationships as Sony Ericsson is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Sony Ericsson is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Sony Ericsson needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sony Ericsson to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Sony Ericsson, firm in the HBR case study Sony Ericsson: Marketing the Next Music Phone needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Sony Ericsson has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Sony Ericsson even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High operating costs
– Compare to the competitors, firm in the HBR case study Sony Ericsson: Marketing the Next Music Phone has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Sony Ericsson 's lucrative customers.
Products dominated business model
– Even though Sony Ericsson has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Sony Ericsson: Marketing the Next Music Phone should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Qiu Cheng, Zane Moi suggests that, Sony Ericsson is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Sony Ericsson: Marketing the Next Music Phone | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Sony Ericsson: Marketing the Next Music Phone are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sony Ericsson can use these opportunities to build new business models that can help the communities that Sony Ericsson operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Sony Ericsson to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Sony Ericsson can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Sony Ericsson can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Sony Ericsson in the consumer business. Now Sony Ericsson can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Sony Ericsson has opened avenues for new revenue streams for the organization in the industry. This can help Sony Ericsson to build a more holistic ecosystem as suggested in the Sony Ericsson: Marketing the Next Music Phone case study. Sony Ericsson can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sony Ericsson to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Sony Ericsson to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sony Ericsson can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Sony Ericsson: Marketing the Next Music Phone, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sony Ericsson in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Sony Ericsson to increase its market reach. Sony Ericsson will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Sony Ericsson can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Sony Ericsson can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Manufacturing automation
– Sony Ericsson can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Buying journey improvements
– Sony Ericsson can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sony Ericsson: Marketing the Next Music Phone suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats Sony Ericsson: Marketing the Next Music Phone External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sony Ericsson: Marketing the Next Music Phone are -
High dependence on third party suppliers
– Sony Ericsson high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Sony Ericsson demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Sony Ericsson has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Sony Ericsson needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Sony Ericsson business can come under increasing regulations regarding data privacy, data security, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Sony Ericsson needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Sony Ericsson can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Sony Ericsson needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Sony Ericsson can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sony Ericsson can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Sony Ericsson: Marketing the Next Music Phone .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sony Ericsson: Marketing the Next Music Phone, Sony Ericsson may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Shortening product life cycle
– it is one of the major threat that Sony Ericsson is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Sony Ericsson needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sony Ericsson in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Sony Ericsson: Marketing the Next Music Phone Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Sony Ericsson: Marketing the Next Music Phone needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Sony Ericsson: Marketing the Next Music Phone is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Sony Ericsson: Marketing the Next Music Phone is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Sony Ericsson: Marketing the Next Music Phone is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Sony Ericsson needs to make to build a sustainable competitive advantage.
