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CHAPTER I

INTRODUCTION

Background of the Study

Sony Ericson was established in 2001 by the Swedish

Telecommunications company Ericsson and the Japanese CE

manufacturer Sony which offers mobile phones, PC and memory

cards, music player, accessories such as headphones, Bluetooth

hands free and Bluetooth watches. The company from the start has

limited rivals in the mobile-phone industry. Due to this, they

didn’t focus on improving their marketing activities, assuring

that their costumers would still continue to patronize their

products.

With the changing industrial environment of the mobile-phone

industry, Sony Ericsson was forced behind due to its inability to

upgrade with the market and as succeeding years, slowly losing

its minimal market share to less than 1% (Manuel 2002). In

October 2011 Sony Ericsson become a wholly owned subsidiary of

Sony, Sony Ericsson rename “Sony Mobile Communications” also

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known as “Sony”, and integrate the mobile phone business as a

vital element of its electronics business, the company adopted

Google's Android operating system for its smartphones in January

2012.

Mobile’s sales in fiscal year 2013( Ending March 31, 2014)

arise 4.7%, to 6,800.9 billion yen, reflecting the positive

impact of the consolidation of “Sony Mobile Communications” as a

wholly-owned subsidiary, the above-mentioned increase in revenue

and positioned Sony in third place Through survey and interview

done specifically at smartphones customers, the proponents came

up with the knowledge that Sony Ericsson was decline in the

mobile phone industry in the year 2006. With this matter the

proponents decided to make a research study on how Sony Ericsson

decline its product in the market until it emerge again and

compete with the mobile phone industry through the development of

different strategies to thrive in a dynamic changing environment.

in Smartphone vendors with 4.5% market share ( Getjar 2014)

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Statement of the Problem

This study was conducted to determine the sudden decline of

Sony Ericsson in the market and emerge as an advanced global

brand in the mobile phone industry.

Specifically, the study aims:

To identify the factors contributed to the sudden decline of

Sony Ericsson’s Mobile phone.

To determine the factors that Sony had developed in order to

re-established their name in the mobile industry.

To determine what makes Sony mobile phones unique to Sony

Ericsson mobile phones that enabled it to emerge as an

advanced global brand in mobile phone industry.

Hypothesis of the Study

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A. Is there any significant relationship between the features,

price, advertisement and distribution of Sony Ericsson to

its sudden decline in the mobile phone market?

B. Is there any significant relationship between the features,

price, advertisement and distribution of Sony to the

reestablishment of its name in the mobile industry?

Significance of the Study

To the Company

This study may help Sony and Ericsson to identify certain

problems regarding on their operations and innovations

This may serve as preferences to find the ideas and decide

what particular improvement

To the Students

This study may serve as reference for the students that

conducting a mini Thesis

To future Researchers

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This study may provide useful recommendations and serve

as a great help for future studies especially in the field of

Industrial Engineering and education

Scope and Limitations of the Study

This study was only focused on the decline of Sony Ericsson

mobile phone and Sony mobile phone and the differences between

Sony Ericsson and Sony mobile. This study shows Sony was able to

continue and innovate to retain their place in the competition on

the mobile phone industry after the disbandment with Ericsson.

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CHAPTER II

THEORETICAL FRAMEWORK

Review of Related Literature/ Studies

The Sony Xperia ZU aka Xperia Z Ultra aka "Togari" a 6.44-

inch phablet released by the Japanese manufacturer in a press

event held in Paris..

They say, "Sony Mobile reserves a big surprise for you." It

can be presumed that the 'big' in the sentence is an indicator

for the phablet's big screen. The invite shows a side view of the

device revealing a circular power button as seen in the Xperia Z

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series. Unlike the usual placement, the phablet is seen having a

headphone jack on the side along with a dedicated camera button

towards the bottom. The thin profile of the phablet is certainly

supported by what we see in the invite.

The device is to have a Snapdragon 800 processor with a

clock speed of 2.3GHz alongside 2GB of RAM. This device is also

expected to come with a 2700mAh or a 3000mAh battery. It is also

known to come with the X-Reality Engine, which happens to be an

upgrade to the Sony's mobile Bravia Engine 2. It is also had come

with 16GB internal storage and expandable memory through a

microSD card slot. The phablet will feature an 8-megapixel camera

and 2.2-megapixel front-facing camera. The known dimensions of

the device are 179.2 x 92 x 6.5mm with a weight of 212g.

Moreover, GSM Arena reported that the phablet will run on

Android 4.2.2 beside a different skin from Sony in the interface.

The UI of the Xperia line up happens to be one of the least

skinned interfaces out there, the website revealed screenshots

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that though a bit enhanced from the present UI, are still in

accordance to the earlier tradition.

The phablet has a water resistant feature but the open

headphone jack without any cover, indicates otherwise. The

handwritten text with the stylus however clearly hints at the

presence of a stylus with the phablet. If that is indeed true,

Sony's first phablet might be a 'note'-worthy competitor for the

Samsung Galaxy Note series. (Bhatia, 2013)

Sony Mobile India announced that it will be releasing the

Android 4.0 update for Xperia P smartphone. The smartphone, which

currently runs on Gingerbread. Xperia P is part of company's NXT

series of smartphones. The features dual core processor, 4-inch

display, 8MP camera, 1GB RAM, and 16GB internal storage.

There is no word on how this update will be rolled-out, but

it is likely to be available via company's software update tool.

Like other devices in the NXT series, Sony Xperia P has been

marred with the outdated software experience, but given the

upcoming ICS update; we can expect it to emerge as a decent mid-

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range Android device. The company flagship Xperia S has already

got the ICS update in various markets. (Shukla, 2012)

Conceptual Framework

Figure 2.1 Conceptual Framework of Sony

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Definition of Terms

Android - The Android operating system (OS) is based on the open

Linux kernel. Unlike the iPhone OS, Android is open source,

meaning developers can modify and customize the OS for each

phone. Therefore, different Android-based phones may have

different graphical user interfaces GUIs even though they use the

same OS.

Broadband - This refers to high-speed data transmission in which

a single cable can carry a large amount of data at once. The most

common types of Internet broadband connections are cable modems

(which use the same connection as cable TV) and DSL modems (which

use your existing phone line). Because of its multiple channel

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capacity, broadband has started to replace baseband, the single-

channel technology originally used in most computer networks.

E-Commerse - A type of business model, or segment of a larger

business model, that enables a firm or individual to conduct

business over an electronic network, typically the internet.

Handset - A cellular phone.

Smartphones - A cellular telephone with built-in applications and

Internet access. In addition to digital voice service, modern

smartphones provide text messaging, e-mail, Web browsing, still

and video cameras, MP3 player and video playback and calling. In

addition to their built-in functions, smartphones run myriad free

and paid applications, turning the once single-minded cellphone

into a mobile personal computer. 

Tablet - is a portable computer that uses a touchscreen as its

primary input device. Most tablets are slightly smaller and weigh

less than the average laptop.

CHAPTER III

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METHODOLOGY

Time and Place of the Study

This study was conducted in San Sebastian College-Recoletos

de Cavite (Cavite City) and EPZA (Rosario Cavite) from May 17,

2014 to May 23, 2014.

Sources of Data

Primary Source

Interview

The proponents conducted an interview with Sony

Ericsson mobile phone and Sony mobile phone user at selected

market to further expand the knowledge regarding the comparison

of each features, design and advancement in technology

Surveys

Secondary Source

Internet/Magazines

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The proponents used Magazines (which composed of

Gadgets and Mobile literature only) and the Internet to sort and

gather verified and accurate information about the study.

CHAPTER IV

RESULTS AND DISCUSSION

The proponents conducted a survey for Sony Ericsson’s mobile

phone user and Sony’s mobile phone user (Consisting of 100

samples) at EPZA Rosario, Cavite. The survey contains comparisons

of Sony Ericsson and Sony mobile phones. This chapter shows the

result of gathered data sorted by the proponents to analyze the

information and bring the answer of the problem statement. The

respondents were asked to rate from 5(Highest) to 1(Lowest) the

features, pricing, advertisement and availability of Sony

Ericsson and Sony mobile phones.

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Widely Advertised

Priced Reasonably

Good Features Availability0%10%20%30%40%50%60%70%80%90%100%

Survey Results Data

Freq

uency

Figure 4.1 shows the rating results of the survey of Sony

Ericsson and Sony. Sony garnered the highest rating compared to

Sony Ericsson.

Sony Ericsson mobile phones were available in shopping malls

and phone outlets internationally and locally. The distribution

method adopted by the company is One Channel distribution. This

means that the customers buy their products from the retailers

recognized by the Sony Ericsson, and these retailers buy the

product from the company itself. The company does not sell its

Figure 4.1 Survey Results Data of Sony Ericsson and Sony

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product online through its website. This is one of the reasons

why Sony Ericsson’s availability rate is lower than Sony. The

internet is one of the best ways to advertise and sell

products/services. Sony mobile phones were sold in shopping

malls, phone outlets, local distributors and authorized online

stores. Sony has an online presence in several formats, for

example http://pro.sony.com/bbsc/home.do provides information on

products and their prices. The site also has information on

corporate applications for its offerings.

In terms of advertisements or promotional activities of Sony

Ericsson are mainly done through advertising. Sony Ericsson has

been sponsoring WTA tours. The Brand Ambassadors of the company

include many tennis stars such as Maria Sharapova, pop stars and

actors in different countries. The company has also adopted the

method of Sales Promotion by giving free gifts or use of “Scratch

Card”. While Sony offers a Sony Card and a PlayStation Card,

these are rewards cards credit cards which allow customers to

earn redeemable points when they purchase Sony products and

services. Sony implements a discount coupon program offering 25%

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to 50% discounts on products such as PC speakers, Blue-Ray Disc

Players, notebooks and laptops. Sony established promotional zone

which allows customers to test their latest mobile phone

products.

Sony Ericsson mobile phones pricing ranges from 15,000-

50,000 pesos. The respondents says that most of their Sony

Ericsson mobile phones were expensive and not priced reasonably

considering the narrowness of its capabilities comparing to the

new Sony mobile phones.

The products of Sony Ericsson include Mobile Phones and

Accessories. The range of Sony Ericsson’s Phones & Accessories is

class apart from others. The mobiles are designed keeping in mind

wide range of customers and usage. The main features of Sony

Ericsson mobile phones are camera, video, music player,

Bluetooth, infrared, e-mailing, gaming, texting and calling and

video calling. While the keypads, buttons, graphic interface and

durability of the phone is excellent, the respondents clearly

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stated that they preferred the new Sony mobile phones because of

its Operating System which is the Android.

Figure 4.2 shows the respondents’ ratings on each feature

they want on their Sony mobile phones. 89.2% declared that they

want to have applications on their phone. The Android operating

system for mobile and tablets has this feature. These

applications include games, photo editing, maps, battery saver,

Figure 4.2 Features’ Rating of Mobile Phones

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calculators, dictionaries and many more useful items. The camera

of Sony mobile phones is outstanding with its clear shots and

autofocus feature. In this year of “Selfie” great camera features

is a must in mobile phones.

Sony Ericsson mobile phones do not have this features that

is why the respondents preferred the new Sony handsets. The

previous owners of the Sony Ericsson phones were forced to buy

other brands because they think it is more useful and advanced,

reasonably priced and available, for that the sales of their

handsets declined. There is a significant relationship between

the features, price, advertisement and availability of Sony

Ericsson to its sudden decline in the mobile phone market. Sony

reestablished their brand name by adopting to the customer’s

taste and market trends today. The company made their mobile

phones into a smart phone and integrates in it the Android OS.

They offer many services and the promotional activities to its

customers and their pricing justifies what they sell. Therefore,

there is a significant relationship between the features, price,

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advertisement and distribution of Sony to the reestablishment of

its name in the mobile industry.

CHAPTER V

CONCLUSION AND RECOMMENDATIONS

Recommendations

The proponents recommend continuous improvement regarding

the marketing strategy, which could ensure customer satisfaction

and loyalty. Right now consumers are writing about products on

blogs and imitating commercials on YouTube. They’re defining on

Wikipedia and gangling up in social networking sites like

Facebook. These are all elements of a social phenomenon, the

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groundswell which has created a permanent, long lasting shift in

the way the world works. Web is the ideal ground to generate a

valuable conversation between brand and consumer. Most companies

see it as an opportunity. Sony must have spontaneous community

online (bloggers and other active people in the web), that want

to generate, promote and implement Conversational Projects, based

on real interactions and collaborations between brand and people.

As part of continuous improvement specifically on product

innovation, the company should focus on its Research and

Development in order to explore and develop new products to

introduce in potential market that could be a fighter brand no

one can replicated.

Conclusion

After the analysis of results, both from the survey, and the

secondary information, the proponents came to a conclusion that

the sudden decline of Sony Ericsson and emerge as an advanced

global brand in the mobile phone industry was associated with

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the increasing demand and fastest growing technology of

smartphones .

The increasing demand provides an opportunity for mobile

industry which resulted to a fierce competition. Sony Ericsson

was forced behind to its inability to innovate its products; as a

result, they are unable to attract a large number of costumers,

which leads to the sudden decline of Sony Ericsson mobile phones.

The disbandment of Sony and Ericsson gave an opportunity

for Sony to improve their marketing mix consists of product,

price, place and promotion in order to reestablished their name

in the mobile industry. The company developed new innovative

product to provide the changing needs of customer’s preference at

reasonable prices to the target market.

Sony makes mobile phones unique to Sony Ericsson mobile

phones that enabled it to emerge as an advanced global brand in

mobile phone industry, through Innovation, creation of illusive

product (water proof), and sophisticated devices hitting the

global market every day. The Sony’s liveliness of innovation

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should remain established as this is what makes Sony expand and

to stand firm.

.REFERENCES

Periodicals

Chang, A.(2014) Amazon reportedly plans to release a smartphone

this year:Business World,39(3),1365-1378

Rodriguez, S(2014) HTC One (M8) smartphone better than

predecessor in every way :Business World, 33(8),999-1015

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Tang,W.(2014,April 3).Big Bang Disruption: How China's Xiaomi

Manages Catastrophic Success.Forbes,120,69

Websites

Bray, J. (2014, April 7). Xperia L Review Retrieved from

http://www.pcpro.co.uk/reviews/smartphones/388063/sony-xperia-l

Mali, R. (2011, October 27). Sony and Ericsson go separate ways

Retrieved from

http://usatoday30.usatoday.com/tech/news/story/2011-10-27/sony-

ericsson-split-up/50953156/1

Parnelle, B. (2012, February 16). Official: Sony and Ericsson are

divorced Retrieved from

http://www.theregister.co.uk/2012/02/16/

sony_ericsson_divorce_final/

Daniel, P. (2012, January 9). Sony Ericsson is no more, long live

Sony Mobile Communications

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no-more-long-live-Sony-Mobile-Communications_id25640