24 November, 2020

'A Sleeping Giant'

Swedish telecom giant Ericsson has undergone a global metamorphosis from a behind-the-scenes, high-technology company to a highly-visible consumer brand that today aspires to be in the same league as Nike, Sony or McDo -nald's. The company's regional

'A Sleeping Giant'
outlookindia.com
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On Erisson's image: We were the cowboys of telecom. Our mainstay was providing solid, reliable equipment to state monopolies. Today, the focus has shifted from engineers to consumers. We are focusing more on marketing today. With global sales for mobile phones expected to reach 100 million in 1997, growing at 40 per cent per annum, just behind televisions and personal computers, we plan to be an active player in the handset market.

On the importance of branding:Today we spend millions of dollars on advertisements, product promotion and brand building, almost as much as we would spend on R&D. Because life is not just about pricing and distribution. It is about feeling. By branding you not only create brand preference but also influence how much people are willing to pay for a product.

On growth markets:Even in Europe, penetration of phones is only 10 per cent, also old phones are being replaced and more than one phone per person is becoming a norm. So growth is in old markets as well as new. But while...

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