Sony Ericsson Mobile Communications was established in 2001 by telecommunications leader Ericsson and consumer electronics powerhouse Sony Corporation. The company is owned equally by Ericsson and Sony announced its first joint products in March 2002. Sony Ericsson employs around 5,000 employees worldwide. It undertakes product research, design and development, marketing, sales, distribution and customer services. Today I will concentrate mainly on Sony Ericsson’s worldwide operation and production facilities.
There are three main factors that an international company needs to consider when deciding where to locate its production activities – country factors, technological factors and product factors, whilst still maintaining product quality and minimising costs. Other than keeping costs down, establishing foreign manufacturing facilities around the world also has a strategic advantage. Many of the countries where companies set up their low-cost manufacturing plants have become better and better in the research and development of products. This is good for Sony Ericsson as it enables local engineers with a good understanding of the requirements of the local user to development a product that is ultimately going to be marketed in the surrounding region. Sony Ericsson is currently assessing whether or not is it feasible to shift part of its research and development division to India, which is presently located in Sweden. In addition to this they are also evaluating the possibility of manufacturing in India as well as whether to set up their own plant or to outsourced production to an existing third-party. Sony Ericsson currently has manufacturing plants, both company controlled and outsourced, located in Brazil, ...