Global, Alliances, And Technology Transfer: A Case Study Of Sony-Ericsson

Q#1) Ericsson is the world leader in cell phone networks and has many years of experience of handsets. Explain how Sony’s technology portfolio has helped the joint venture.

Access to technology: Sony skill base and technological advances has helped Ericson to increase its portfolio bringing with it a large Portfolio based on its traditional area of music video, VCR camera, integrating these into the traditional phones produced by Erickson has contributed to the prosperity of the joint venture. They have contributed to the development of the third and fourth generation cell phones.

Access to skills: Sony has contributed to the joint venture in terms of the skills of its employees increasing the general level of access to skills in the joint venture.

Shared risk and liability: the technology transfer has helped Erickson to increase its market share and dominating the cell phone handset market.

Q#2) Explain why a cell phone is more like a radio than a wired telephone.

Ideally, the cell phone shares the same technology with a radio because it picks up signals from the transmitters. The cell phones that are used today are based on the radio communication device technology such as “over-over” (simplex communication) as originally the technology shared a single frequency for both the outgoing and incoming communications. However, the duplex communication was removed when the frequency was increased through the frequency reuse technology.

Q#3) Explain why Sony and Ericsson were finding it increasingly difficult to sustain R&D over all of their businesses.

There were problems trying to integrate teams from Sony and Ericson, the company also experienced losses in its market share in china while there was also a very strong competition in foreign markets such as the United States.

Q#4) Explain why Ericsson is maintaining a large R&D division focusing on handsets when its joint venture with Sony is also conducting R&D and product development of handsets.

The company is aiming at controlling 50% of its production in companies controlled by it in order to increase its market share and increase efficiency in its supply chain system

Q#5) many firms are outsourcing more and more of their activities and focusing on core activities. What are the advantages for Sony-Ericsson in bringing manufacturing back under its control?

Sony Eriksson is bringing manufacturing back under its control to smooth out supply chain problems and help it increase its market share in the handset market segment. This is based on the company’s realization of the consequences of its failure to take advantage of the charismas sales boom when it did not have enough components in stock.

Q#6) conclusion

The key issues in the case study are about technology transfer, and the way companies benefit from technological transfers. Many companies have gained from technological transfers, merger and acquisition. Major joint venture in the case study is between Sony, Eriksson, that has helped both companies leverage their competitive advantages to increase their market share Portfolio, and productivity, however just like in May marriages, one arty has to cry foul. For example, Eriksson went against the original agreement a d is increasingly conducting research and development against their original agreements.

Recommendation

Technology transfers is an effective way to gain competitive edge in a competitive environment, however, it is imperative for companies to critically asses their potential partners, their strengths, weaknesses and opportunities and threats. Then have a timed plan for capital planning and execution. On the other hand, there should be contractual document that binds both parties in the merger to prevent future difficulties that might arise in the merger.