Sony Ericsson's Pain: Ten Mistakes in Two Brands

On December 6, according to foreign media reports, a senior Sony executive revealed that from the middle of 2012, Sony Ericsson will use the "Sony" brand and operate it separately under Sony.

Although this news has not been officially verified by Sony and Sony Ericsson. But two months ago, when Sony completely bought Sony Ericsson from Ericsson, it seemed that it had already foreshadowed it.

Will the 10-year-old "Sony Ericsson" brand really become history? Why did the company, which was jointly created by European communications giants and Japanese consumer electronics giants, become weaker in the market competition?

The industry insiders interviewed by the newspaper concluded that the development of Sony Ericsson over the past 10 years found that due to the inherent ills of the joint venture company, it missed several opportunities for gold development, which made the company slow to develop.

After Sony regained its mobile phone business, whether it can effectively integrate its resources and sweep the trend for many years has become a suspense in the industry.

Miss hard-to-soft opportunities

In 2001, the Ericsson mobile phone brand, which had already begun to decline, chose to enter into a joint venture with Sony. The two companies each had 50% stake in the establishment of Sony Ericsson, headquartered in London.

The establishment of Sony Ericsson is seen as a strong alliance - Sony has an excellent industrial design foundation and has accumulated deep in the music, games and other industries, and Ericsson is an old European communication company.

Yang Xingping, founder of Dopod, recalled to reporters that Sony Ericsson was once brilliant when it was founded. “The industrial design of Sony Ericsson has left a deep impression on people.” Yang Xingping commented that Sony Ericsson’s mobile phone design was fashionable and beautiful, and it was loved by many consumers.

In 2004 and around 2005, Sony Ericsson introduced Sony's advantages in digital cameras and music to mobile phones, launched the Cyber-shot series of camera phones and the Walkman series of music phones, and achieved considerable success in the market, at the time Sony Ericsson. Its market share was second only to Nokia and Samsung.

However, Sony Ericsson repeatedly missed opportunities at the key node from hardware to service platform.

At that time, Apple's iPod player was swept in the world. Yang Xingping believes that Sony Ericsson was faced with a very good market opportunity. Once the music function is well integrated into the mobile phone, then consumers no longer need to bring their mobile phone and iPod at the same time and launch on the iPhone. Before, Sony Ericsson has faced a golden opportunity.

At that time, Sony Ericsson's music phone download was not convenient enough, its capacity was not large enough, and its use in the background was not convenient. It did not seize this opportunity.

What is particularly important is that Sony Ericsson’s music service has not been a major breakthrough in the crucial US market. This is because of the problems with Sony's cooperation with local operators and the inconsistency with Americans in marketing and product design. Taste.

Yang Xingping pointed out that in the piece of music services, the United States alone in the world market may gain greater benefits, but Sony Ericsson has not been able to open up the situation in this market, affecting the transformation of its service platform. In contrast, Apple's iTunes platform has been a great success, and since then Apple has successfully ported iTunes to the iPhone.

Since then, Sony Ericsson’s music service once focused on the Chinese market as a promotion focus. “Around China’s mobile operators spent a lot of effort on promoting music phones around 2005.” Yang Xingping recalled that at the time, China Mobile had focused on supporting Sony Ericsson. Dopod, and Sony Ericsson has also focused on exploring the Chinese music mobile phone market.

However, because Chinese people have not cultivated their habit of paying for music downloads, apart from selling hardware, Sony Ericsson's music mobile phones are difficult to achieve major breakthroughs in platform construction.

Later, with competitors such as Nokia quickly entering the music mobile phone market, Sony Ericsson's advantage is no longer, and its market share has once declined.

Intelligent platform swings

In the development of smart phones, Sony Ericsson also has lessons worth reflecting on. This vendor has repeatedly wavered between several operating systems, leading to missed market opportunities.

Sony Ericsson was the main supporter of Saipan in the early days of developing smartphones. Saipan was once a system that led the development of global smartphones.

Since then, Sony Ericsson has switched to the Windows Mobile camp and launched some Windows-based mobile phones. However, under the impact of the iPhone, Sony Ericsson's smartphones did not perform as expected, and switched to the Android camp.

At the end of 2010, Sony Ericsson announced that it completely abandoned the Saipan platform, and Nokia became the last supporter of this platform. At present, Sony Ericsson's Android-based Xperia(TM) smart phone revenue currently accounts for more than 80% of total revenue. Sony Ericsson is currently the fourth largest Android vendor after Samsung, HTC, and Motorola.

Yang Xingping commented on this, Sony Ericsson oscillated between multiple platforms to miss the opportunity for gold development - Sony Ericsson is not as effective as Apple's integration of hardware and software resources.

Li Yi, secretary-general of the China Mobile Internet Industry Alliance, concluded that the joint venture between Sony and Ericsson was a bit sloppy. During this 10-year joint venture process, the missed opportunity was more of a Sony because it could not integrate its own large-scale mobile phone. Resources.

“The world’s most afraid of is the north and the south, taking one step east and one step westward, it is easy to miss the opportunity.” Li Yi pointed out that Sony Ericsson's repeated decisions in some key decisions is likely to be 50% to its 50% joint venture structure. Relevant, it is easy to share opinions among shareholders.

"I think Sony Ericsson should not easily give up Saipan." Yang Xingping believes that this is the first Nokia and Sony Ericsson established a platform, when Sony Ericsson's content value-added services did not succeed, it is considered a Saipan system problems, switch to other platforms.

As a result, although Sony Ericsson quickly reversed its losses with the help of the Android platform, "But that is, after all, working for others (Google)." Yang Xingping commented that the current Android platform is very competitive and Chinese handset maker ZTE Huawei's shipments are aggressive and large. There is more than Sony Ericsson.

How to implement a four-screen strategy

After Sony regains control of Sony Ericsson's mobile phone business, it leaves the industry with new imagination.

Tao Xujun, director advisor of Nomura Research Institute (Shanghai) Consulting Co., Ltd., pointed out that almost all Android mobile phones have very similar functions and there is no effective segmentation in the market. The industry generally believes that running rich content such as movies, games, and music on mobile phones, PCs, tablets, and televisions will become a new trend.

Tao Xujun believes that in the integration of hardware and software resources, Sony is more advantageous than other manufacturers, because Sony has a rich source of content, Sony is a global leader in film, music, games. For example, Sony Ericsson recently launched the Xperia Play game mobile phone, everywhere the shadow of a Sony handheld game console.

Sir Howard Stringer, the CEO of Sony, also stressed that buying Sony Ericsson "our "four-screen strategy" (mobile phones, TVs, PCs, tablets) will be implemented."

"In the future, four-screen unity, Sony is one of the few powerful players." Li Yi said that he thinks Sony still has a chance.

However, Sony's proposal to integrate its resources has long been a matter of two days or less. From the current situation, Sony's integration is not a good one - the biggest reason for this is the division between Sony's internal departments.

Tao Xujun pointed out that Japanese companies often have a very strong engineer culture. They pay more attention to excellence in single products, but they often lack vision in their large strategies. This is why Sony chose to hire an American CEO.

The days of Sir Howard Stringer, the CEO of Sony, are very sad. Sony has lost money for three consecutive years under his leadership. The news that was reported not so long this year was due to the Great Japan Earthquake and floods in Thailand. Sony may lose money for the fourth year.

At present, Sony lacks a strong leader like Steve Jobs, which can effectively coordinate the complex interests of its various departments, which makes it difficult for the integration of Sony's resources, which may be the biggest obstacle to the restructuring of Sony's mobile phone business.

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