Compose a 2000 words essay on From Sony Ericsson JV to Sony Mobile Communications: Can Sony compete in the global mobile phone market. Needs to be plagiarism free!There is complexity in terms of law,

Compose a 2000 words essay on From Sony Ericsson JV to Sony Mobile Communications: Can Sony compete in the global mobile phone market. Needs to be plagiarism free!

There is complexity in terms of law, cultures and the involved societies (Cooke et al, 2012).

Sony Ericsson joint venture was formed in 2001 when Sony Electronics Company joined with Sony phone manufacturing company, forming a joint venture where both companies had a 50 percent shareholding. The aim of the joint venture was to combine the expertise of Sony electronics with the technological leadership of Ericsson as well as to enjoy its large market share. It aimed at placing itself as the most innovative in the mobile phone industry. The failure to achieve this aim was due to a number of problems that the that the joint venture encountered and the first problem is the difference in company culture between the two companies. Sony was a company with a Japanese origin while Ericsson was a Swedish company. The joint venture encountered difficulty in understanding the management cultures that resulted from Ericsson and those that resulted from Sony. This caused trust issues based on characters between the managers of the two joint ventures. The cultural differences also resulted to delays in releasing the new phones at the time when the operations of the joint venture were starting. The delay was also caused by the reliance of technological partners who were from different cultural backgrounds. This resulted to failure of the company in achieving maximum earnings since the delay affected the sales level (Bengtsson, 2007).

The supply chain for the joint venture as well ended up being inefficient and this caused an increase in the level of transaction costs, which are the costs involved in the exchange of property in the market as well as service and material costs. The joint venture therefore lacked a global matrix strategy that would combine the transactions of the two companies to ensure that they operate as a single unit therefore minimizing the possible transaction