None

(1) Porter’s Competitive Force Model

Competitive Rivalry:

- Competitors from all over the world, like Sharp from Japan, LG from Korea

- New mobile phone models are released frequently from other mobile phone manufacturers

- Nearly all mobile phone brand has their own strong selling point, like Sharp has excellent screen quality, Nokia is reputed to its stable quality.

New Entrant

- Intellectual property is concentrated among a few industry participants, creating barriers to entry for new entrants and limiting competition among phone manufacturers.

- High established cost

- High technology is required

Customer power

- Sony Ericsson releases a wide range of product from high to low-tier. It gives customers broad choices to suit different needs.

- There is a trend of changing new model of mobile phone within a short period of time

- Sony Ericsson differentiates its product by its feature-rich and innovative mobile handset design. It successfully gains a large market share.

Supplier power

- Sony Ericsson is a International reputable brand

- Relatively good market coverage in the world when compared with LG, Sharp, Samsung

- Fast response to market needs, always produces new products with ultimate design

Substitute products

- Sony Ericsson produce its low and mid tier product in India to reduce the production cost. It allows them to produce more price competitive mobile phone.

- The design of Sony Ericsson mobile phone is more fashionable and trendy when compared with Nokia and Motorola.

(2) SWOT Analysis

Strength:

- Strong financial backup

- Relatively good market share in the world when compared with NEC and Sharp

- International reputable brands

- Abilities for new technology invention

- Fast response to market needs, always produces new products with ultimate design

Weakness:

- Unstable product quality and not reliable

- High promotion and advertising cost

Opportunities:

- Increasing needs in using Mobile Phone and other advance technology in the world

- Rapid sale growth in the Chinese market

-Trend of changing new model of mobile phone within a short period of time

Threat:

- Direct competitions from other brand, such as Samsung and LG

- The development of 3G phone and the popularities is unknown

- The changing of telecommunication policies in different countries and cities might affect the business

(3) Competitive Strategies