Mobile Handset Competitor Analysis: Ericsson SAMSUNG ELECTRONICS CHINA (SEC China) OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK KEY ISSUES TO PROBE - ERICSSON BACKGROUND INFORMATION ERICSSON IS A TECHNOLOGY LEADER IN MOBILE COMMUNICATION AND A MARKET LEADER IN MOBILE INFRASTRUCTURE STRATEGY ERICSSON AIMS TO SECURE ITS LEADERSHIP POSITION IN NETWORK EQUIPMENT AND MAY BECOME A NICHE PLAYER IN MOBILE HANDSET ERICSSON’s MARKET SHARE IS DECREASING OVER THE PAST FEW YEARS ERICSSON IS NOW NUMBER FOUR IN SALES VOLUME AND NUMBER FIVE IN REVENUE IN THE MOBILE HANDSET MARKET PRODUCT/MARKET KEY MESSAGES - PRODUCT/MARKET ERICSSON OFFERS TOTAL SOLUTIONS IN MOBILE COMMUNICATION WITH MORE EMPHASIS ON MOBILE INFRASTRUCTURE ERICSSON MAINTAINS FOOTHOLD IN THE LOW END MARKET ERICSSON MATCHES SIEMENS IN THE 1st TIER CITY MARKET ERICSSON IS RELATIVELY STRONG IN NORTH AND EAST VALUE CHAIN STRATEGY KEY MESSAGES - VALUE CHAIN STRATEGY ERICSSON PRESENTS "ONE FACE" TO CUSTOMERS BY CENTRALIZING CORE PRODUCT SALES THROUGH ITS OWN SALES FORCE ERICSSON IS STRONG AT TECHNOLOGY AND MARKETING, BUT RELATIVELY WEAK AT MANUFACTURING AND SERVICE IN MOBILE HANDSET ERICSSON DISTRIBUTES THROUGH FIVE FIRST-TIER RESELLERS ORGANIZATION AND OWNERSHIP KEY MESSAGES - ORGANIZATION AND OWNERSHIP ERICSSON CHINA HAS CENTRALIZED MANY COMMON FUNCTIONS FROM JVs ERICSSON HAS 10 JVs AND 4 WOFEs IN CHINA, AMONG WHICH 2 JVs ARE DEVOTED TO MOBILE HANDSETS ERICSSON USES JV PARTNERS TO ENTER THE MARKET AND ITS OWN SALES FORCE TO SELL CORE PRODUCTS FINANCIAL PERFORMANCE KEY MESSAGES - FINANCIAL PERFORMANCE ERICSSON SAW NEGATIVE PROFIT FOR ITS MOBILE HANDSETS IN 2000