Sony without Ericsson
Introduction
Sony Ericsson was a company manufacturing mobile phones. It was founded on October 1, 2001 by consolidation of two companies Sony (Sony Corporation) and Ericsson (Telefonaktiebolaget L. M. Ericsson). Ericsson, which had been in the mobile phone market for decades, and was the world's third largest cellular telephone handset maker due to the fire at Phillips factory, were not able to get chips for the phones. That caused a shortage and forced Ericsson to find a way to solve this difficulty. Therefore, when at the end of 2000, when the Sony Company suggested creating joint venture, Ericsson apprehended this news, as a miracle. The company was rescued. Duties were distributed very simply – from Sony the design, marketing in a number of the markets was introduced, and development of a hardware stuffing of phones, definition of specifications, a market research became a problem of Ericsson. Cooperation was successful for 6 years until the significant net loss in years 2008-2009.
The Decision.
On October 27, 2011, Sony announced that it would acquire Ericsson's stake in Sony Ericsson for €1.05 billion ($1.47 billion), making the mobile handset business a wholly owned subsidiary of Sony. The transaction's completion was expected to occur in January 2012. That means final leaving from the market of cell phones for Ericsson, while Sony will try to achieve sympathy of users alone.

The Driving Forces.
(From Sony Mobile perspective)
Restrain the internal conflicts in planning and decision making

The intracorporate war between managers led to severe strategic mistakes. Both were worried for their individual goals: Sony was worried because they wanted market share in mobile phone manufacturing industry and Ericsson was worried because they wanted their industry reputation back. In addition, while Ericson managers were suggesting reasonable changes in planning, Sony managers began to fight and refused to accomplish actions, which in their opinion “harmed” Sony.
However, after Sony became the only owner the decision making process became easier since the conflicts was outdated.
Focus on one product

In new Sony Mobile the major focus are smartphones and other “smart” devises like tablets and MP3 players. That gives an opportunity to concentrate on researches and innovations in one specific field that means higher quality and productivity. Overall, makes Sony more competitive. For Ericsson, the payment means that it can exit the mobile phone business effectively without ties, and focus on building mobile and wireless networks, where its expertise lies.
New Location

One of the first operation of Sony-only Company was a move of headquarters from Lund, Sweden to Tokyo, Japan in order to fully integrate with its parent company. In addition, the headquarters move was part of a plan to reduce its workforce, then 10,000 employees, by 20%.

Reorganization

Sony wanted results as early as possible and Ericsson's were not making profits as per expectations, so due to this they started cut number of jobs and also remove Research and Development departments which were working globally, due to this they couldn't make innovative products according to customer needs. Moreover, when any technical business do not have R & D department that helps organization in the development then how they could move in the industry successfully. Therefore, with new company comes new structure that takes into account previous mistakes and is more accurate and balanced.

New entrance with old name

As a former Sony Ericsson, new Sony mobile has all the benefits of long-living company as customer’s loyalty, approved manufacture and developed marketing strategies. Anyway, such big and shocking news as their merger of Ericsson part attracts attention of journalists and potential customers. Sony Mobile is a new company this fact gives them opportunity to wipe the slate clean. They announce their new mission and vision, new objectives and goals. Their CEO gives interviews and answers questions about their plans for future, which is a bonus advertising for Sony and restart of Sony Mobile.

Conclusions
Five years ago, the world’s top four mobile manufacturers were split evenly between Europe and South Korea: Nokia (the first place) and Sony Ericsson (the fourth place), alongside Samsung (the second place) and LG (the third place). Nokia’s share has been falling so fast past few years that it’s been forced into an alliance with Microsoft, while Apple, HTC and Research in Motion have all overtaken it — and in smartphones it’s even further off the pace.
Losing its share in the market, Sony Ericsson made a serious organizational decision - to buy Ericsson’s part of company and become the only owner of a new company Sony Mobile. There were several driving and restrain forces. However, the driving forces outnumbered restrain ones so that led Sony to change their current state.
Nowadays, Sony is slowly regaining its share in competitive mobile phone market and introducing new products and technologies. In other words, their organizational decision was successful.

By Trifonova Iuliia