Ericsson in the New Millennium

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Case Details:

Case Code : BSTR128
Case Length : 13 Pages
Period : 1990 - 2004
Organization : Ericsson
Pub Date : 2004
Teaching Note : Available
Countries : Global
Industry : Telecom

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

In 2001, Ericsson entered into a joint venture to form Sony Ericsson- a company that would combine Ericsson's technology with Sony's understanding of the consumer market.

The move paid off and by 2003, Sony Ericsson broke even and was firmly on the path to profit-making. Meanwhile, free from the handset business, Ericsson concentrated on its core businesses- the 3G technology and wireless telephone networking. Though markets for 3G technology were still relatively small, Ericsson managed to establish its supremacy.

It took Ericsson, a more than 120-year-old company, a long period of almost four years to break away from its old culture and to reorient itself according to the changing market environment. Ericsson has reinvented itself as a lean, modern, advanced, cost-conscious and competitive organization.

Vision, Mission and Values

In 1876, Lars Magnus Ericsson, started The Ericsson group of Telecommunication Companies in Stockholm, Sweden in a rented kitchen, which he used as an electro-mechanical workshop. What had started as a small workshop in the 19th century became a leader in the global telecom industry in the 20th century.

According to Ericsson's stated vision, "We believe in an `all communicating´ world. Voice, data, images and video, conveniently communicated anywhere and anytime in the world, increasing both quality-of-life, productivity and enabling a more resource-efficient world".5 Its mission was to be, "the global leader in providing communications solutions, always with excellence.

To be the prime innovator of our industry, driving for this advanced communication to happen".6 In order to achieve its mission, Ericsson identified a set of core values which formed the guidelines on which the company functioned. These values were - professionalism, respect and perseverance...

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