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When Sony Ericsson launches a new product in the market, the competitors will come up with fresh products that are advanced in features and these are offered in the market. They introduce a variety of such good featured products in a price range less than Sony Ericsson’s products. Therefore, the company encounters less stability for its products and, as a result, the products become outdated. Stiff competition: Stiff competition is another major issue that the company faces. The mobile phone market faces stiff competition because of the very large number of players in this industry. Technology is considered as the primary driving factor of this sector. So, continuous efforts are needed to be put in by the company in order to be the market leader.
Strength: The strength of the company is that it enjoys a good brand image in the minds of the customers through their higher quality products. The most important strength is that Sony Ericsson is a joint venture between two companies that are specialized in two different production techniques. Ericsson is specialized in providing telecommunications and mobile phone technology and Sony is specialized in sound quality. Therefore, the combination of the expertise of both companies is its basic strength. Sony Ericsson also holds the distinction of being the first producer to introduce a high quality music player in mobile phones.
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