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What can b d reason? Wrong marketing, SE dont produce enough fones or d shops order those fones what they can with 100 % sell? Or these 3 things 2gether... This message was posted from a R520
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Posted: 2004-01-25 11:11:52
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It is a very common thing to go to a store and find out that the SE phone you are looking for is out of stock. And that is one of the main reasons SE is not gaining marketshare. You have to be able to flood the marketshare with phones if you want to move up the ladder.
The only model that SE managed to sell without serious shortages in supply was the T610. Yet had they had problems with supply then SE would be in a very bad state at the moment.
I have said it before and i will say it again : Sony Ericsson needs a T610 for the masses! It needs a heavily marketed phone (look at the promotion and adverts the t610 had) with reasonable features and nice design at a maximum 200 EURO price. And it needs to make sure that it can get enough supply to meet demand.

Simple stuff but SE needs time... will get there eventually!

ROLL ON CEBIT 2004!!!

[ This Message was edited by: thanasis on 2004-01-25 15:37 ]
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Posted: 2004-01-25 16:35:36
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think everyone missed the point.

would you believe it if SE was "intentionally" creating a stock out situation for their phones? Why you ask?

Simple, Logistic Control, Demand & Profit generation.

Logistic Control
Produce less, store less, less inventory cost.

Demand
Produce less, supply less, demand goes up (think hungry consumers)

Profit Generation
Less cost, produced sufficient stock meet profit targets.

Lets face it, new phones are being churned out quarterly. Why flood the market with just 1 model that will stay around for 1 to 2 years? Meaning produce 1 good model, get loads of customers and stay quiet for a year. SE churns something good every quarter or half year to get new market share. New customers who see how good the T610 is from existing users and can't get one, will definitely try the T630. While T610 users won't feel shortchanged by the T630. Customer loyalty comes into the picture. Demand is kept to a high...

Unlike Nokia, churn 1 model every other week, customers hardly can tell any difference in features but pay prices that are worlds apart due to designs.... frustration sets in, dissatisfied customer, will move on eventually.

If you ask me, this is ingenius marketing on the part of SE. They make a model that will last easily 1 to 2 years and still stand the test of time and competition. But make it in smaller quantities so they can launch a newer model with minor upgrades. Satisfy new would be SE customers, not frustrate exsiting cust. End result, slowly but surely, SE's market share will go up. Slow and steady wins the race....
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Posted: 2004-01-25 17:29:40
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@ kenzoden

Though your theory might be correct in a logistics sense, it is only a means by which to generate slight profit and recycle your costumers. Do you really believe that SE wants to stay a small player in such a rapidly evolving industry? Your theory excludes the possibility of growth, since by producing little you get back little in return. And you can ask any chairman or director in any company and he will tell you its a wrong strategy. There is simply no way you can gain marketshare and become a big company by producing little.
When demand is high you try and produce as much as possible... pure economics
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Posted: 2004-01-26 00:38:10
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Basically it a supply chain management issue.

By using this statement, production, logisctic, planning and sourcing all come underfire.

Of course you can't compare with Siemens, Samsung and Nokia who didn't suffer much during the burst of WAP bubble. SE was trying to reduce head count and this lead to reduction in phone. Not to mention the problem to get enough financial support from their parents

Therefore, try to look ahead on the new portfolio for 2004. Since their 2nd half is making money, this mean their financial status is stronger. Only with more $, they can produce some real impact this yr.

Another thing, even those big 4 are shipping more but their figure only from their warehouse to distributor wrehouse. We only know how much it went into consumer market when Gartner Market Research is out..
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Posted: 2004-01-26 01:50:58
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@thanasis

marketing is not production; it is a lot more complex than that. major production does not guarantee major profit. i believe SE's marketing strategy is sound, that is why they are one of the major players in the mobile phone industry.

"when demand is high you try and produce as much as possible... pure economics" -this is exactly what SE is trying to do. do you honestly believe they are not aware of this? they are limiting production to make demand for their products higher.

"And you can ask any chairman or director in any company and he will tell you its a wrong strategy. There is simply no way you can gain marketshare and become a big company by producing little." -one does not gain marketshare through major production but through sound judgment and an appropriate strategy; i'm quite sure "any chairman or any director in any company" will tell you the same.

by the way, SE was NEVER a small player in the industry...

peace.
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Posted: 2004-01-29 06:14:48
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Hi Everyone.

Wow... didn't know my topic raised such interest level. It's nice to know SE users are really concerned for the company they're supporting.

Think everyone brought up very valid points. Ultimately, the company need to strike a balance between production to meet demand and ensuring survival of interest for the long haul.

SE has learnt the folly of its ways years back when they were number 1. I'm sure SE is very careful with its strategic moves as they have just recently started seeing profit but it's still a full year loss for the company.

For any aggressive push, SE may need another year to gain enough profits (and fill up their war chest) to take on the top 3 players. Just look at SE Japan website and you'll know, the best and very best from SE ... is yet to come. Year 2003 was just a warm up, 2004 is building up the pace... and i'm sure 2005, we'll see SE overrun the competition.

Afterall, Ericsson was the pioneer in almost every conceivable mobile technology available in the market now. They would have more coming up.
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Posted: 2004-01-29 07:15:26
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Regarding stock.

A friend of mine when to Telestet shop (Greece) and wanted to buy the P900 but they were out of stock not because SE didnt supply them but because they(Telestet) dont want to supply their shops with such an expensive mobile due to its high price and they are afraid they will not sell it!
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Posted: 2004-01-29 09:56:29
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yeah i agree. even the top mobile phone stores would not get many P900's in because they wouldn't sell many of them.

i think SE will do well with the P900 since some (stupid) networks are giving them away for free. i'm sure that SE never reallised how many P900 would actually be "sold" so quickly.

i'm sure that usually a store like an O2 store would only sell 15 P900 units when it first came out - but since they did the free deal then they are getting rid of them way too fast.

the store i got mine from only had 2 P900's left when i got mine, and that was the day they started selling it. they hadn't even put it on display yet.
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Posted: 2004-01-29 11:11:00
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I remember I got my first P900 directly from SE Greece before they supply them to the retailers.

Then they supply only 15 P900 to a specific retailer not because they didnt have stock but for the previous reason I explained previous.

Its a pity I must say!
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Posted: 2004-01-29 11:16:16
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