Global Strategy Research For Ericsson

This paper takes Ericsson, which is a benchmark company in the communications equipment industry as the object of study, and does a comprehensive analysis on the Ericsson development status and competitive environment. The external analysis includes PEST, SCP and five forces model. Overall, Ericsson has strong competitiveness in the field of the global communications equipment industry. It’s gotten policy-oriented support from Western countries, and its technology and maturity are more favorable.in the environmental analysis of the industry, Ericsson is also actively adjust their development strategies. In the face of growing global mobile device market, Ericsson, Nokia Siemens, Huawei will dispute70%share. Ericsson also carries out the merger of measures to expand global influence. In the five forces model an analysis, the dominant situation of the communications equipment industry is gone in the face of fierce competition. How would Ericsson break through the bottleneck of its development, and get rid of catch-up with the encroachment of business, which is not optimistic.The internal environment analysis includes management capabilities, technical capacity analysis and financial analysis of three aspects of a comprehensive exposition. Its internal management has done particularly perfectly as the communication equipment industry benchmark for enterprise. In the financial capacity, Ericsson presented the main business income of relatively steady growth and better cost control. R&D expenses and general and administrative expenses also maintained the same level of growth. Ericsson profit showed a downward trend. However, the market share is diluted because the manufacturer of communications equipment manufacturers Huawei’s low-cost competitive strategy. In addition, Ericsson has enough cash flow that can make Ericsson have the higher ability to resist risks. This is specially prepared to deal with the financial crisis. It is worth a lot of companies learning.Three major trends of the future network society include mobile broadband services cloud era and mobile data. Ericsson, as a leader in communications equipment, whose future strategic must rotate around the three trends. Ericsson long-term strategic planning for the future are higher profit than the market growth rate, to achieve the highest profits in the industry, to improve the earnings of the joint venture, and to ensure plenty of cash flow, Ericsson need to continue to maintain its advantage in the traditional areas of strength, and need to accelerate the implementation of the expansion strategy in emerging strategic potential. Ericsson needs to develop specific implementation plans to achieve these strategic objectives. Firstly, it needs to integrating mobile broadband, telecommunications management services as well as operations support systems and business support systems resource advantages; Secondly, it needs to gain the market share. Thirdly, it needs mergers, acquisitions and partnerships. Future market capacity of the network society looks perfect. However, it needs to take into account the maturity of the market and consumer acceptance. Too much ahead of development often leads to failure of the promotion of new technologies. In the process of research and development of advanced technologies, it needs to be adjusted according to market changes timely.