Reinventing Ericsson Background
The Ericsson of Swedish company is one of the biggest telecommunication vendor , founded on 1876 by Lars agnus Ericsson! The "ompany told us to how survived in order to maintai maintain n sustai sustainab nabilit ility y the company company to compete compete with with other other compan companies ies and also how to develop the technology to support "ompany growing up! "ompany still saw telecommunications as a long#term mar$et business with reason most of the people around the world thin$ that communications is not %ust important but a necessity! &n 1''(s where telecom industry were booming decade specially for )S systems, Ericsson $ept as leader and help *(+ of )S mar$et share! Led by Lars am-vist, Ericsson Ericsson boo$ed nine times revenues in 1''8 compare from 1''(! .re-uent e/ecutive changes and lag in the mobile handset business after am-vist step down 1''8 1''8 , but still good in product that produced by good 0 bright forcast new technology in )S , called 2) , $eep made Ericsson growth well! 3rgani4ation si4e also growing and bigger as it business by employed almost 1(7!((( 5s a long long#t #term erm busin business ess Eric Ericsso sson n has has to be more more focu focused sed and and mar$ mar$et et orien oriente ted d company! &n order to achieve suistained profitability, company must build efficiency and continuous improvements in all operations which are business unit configuration, reorgani4e or restructure the company and decide how far company should move into the enterprise segment by optimi4ing research and development 0 the most important resources which should be managed in a more rationali4ed way Ericson had almost gone ban$rupt when the dot#com ubble burts and the telecom mar$et collapsed in late 9(((! Ericson:s road to recovery had begun under then "E3 ;urt
&n 9((1 the turmoil begins, started with fre-uent e/ecutive changes and set bac$ in the mobile handset business! "ontinued with the order stoc$ dropped, all the clients %ust stooped buying! Stoc$ dropped dramatically! 3f course it impacted to company:s revenue which was declining, in other hand company had invented more capital e/penditures! The turnaround program came as a shoc$ to everybody in company! =obody believe they could ta$e out such big chun$s of money which about SE; 9( billion or 92+ of operati operating ng e/pens e/penses! es! The The first first impact impact startin starting g with with reduci reducing ng the number number e/terna e/ternall 0 concultants and temporary wor$ers from 1> thousands to less than 7 thousands! Secondly cutting travel and other e/penses!
The mobile handset business continued to ma$e losses through out 9((1 and sales decreased! ?nli$e its competitor, company had failed to brea$ though in the mass#mar$et due to the phones were over#engineered and @uglyA and launches were often late! The 0 in Ericsson aren:t doing well # # # #
They did some research which isn:t right on target The long 0 lead times, standardi4ation procedures and adoption times could slow down new versions for longer than e/pected! &n 9((1, our company produced phones were over#engineered and ugly, and launches were often late! They have to many employe who aren:t doing there %ob effectively
Recomendation
&n order to achieve suistained profitability organi4ation and business should be able to adapt any change -uic$ly and understanding in mar$et situation! Broduct orientation and sales orientation were the most mar$eting method that used by mostly technology companies! ar$et oriented is a method that used in mar$eting by learning analy4e what mar$et e/pect! ividing the mar$et in to several groups based on several criteria is the best approach , called segmented mar$et! ?sing segmented mar$et can also avoiding the @economic of scaleA losses! Segmented mar$et can understand customer e/pectation more details! Cith this segmented mar$et , company can evaluate their product based on mar$et segment , can define which product more acceptable for specific segment and wanted by customer! This approach also can define which product can be eliminated avoid and reduce losses! Service e/cellence which mean serve and give value added to the customer also new method that $eep customer loyalty! To $now what is the competitor loo$s li$e and tried to minimi4e their advantages and $eep company advantages is the important thing! The good company also should prepare the strategies how to face the competitor in the competitive mar$et &n telecommunication company , since technologies are their main core, 0 should be $ept sharp on how to innovate in technology and combine with customer behavior and culture! Solution for 0 problems D 1! 3ur 0 must more focused approach, li$e what 0 should do when doing a research! .irst, we have to $now what factor to influence customer decisions "ulture, Social and Bersonal .actor! Second, reserch about motivation of our customer and more standardi4ed processes could lead towards operational e/cellence in that area! 9! Ce direct our 0 team to do the research more detail and correct with the right mar$et share! &nclude do more deatiled research for get perfect information for
costumer about what the type or spesification they needed! So we can reduce mar$et failure! 2! 3ur company try to %oint venture with Sony for mar$eting mobile phones!
! Ce have cut our employe were now affecting the whole of our:s organi4ation! Every dividion had to save money and the managers spent their time choosing who to fire ne/t!
Conclusion
3rgani4ational structure to prepare the company for future challenges! The structure of the mar$eting, sales and 0 fuctions was $ey issue! Ce have to be on top of where the mar$et places is, what the right future technological choices are and what the customers want and can:t delegate too much and let for e/ample the head of research ma$e the technology choise as these are core bisiness decisions!
Bibliography
=arayandas, as, Fincent arrie esain, aniela eyersdorfer, and 5nders S%oman! @ Reinventing Erricsons.A (7#(7>, Gune 9((7!
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