Ericsson SWOT & PESTLE Analysis
ID : 52370053| May 2021
COMPANY PROFILE -Ericsson
Business Sector :Telecommunications and Networking equipment
Operating Geography :Sweden, Europe, Global
About Ericsson :
Ericsson was founded by Lars Magnus Ericsson in 1876, and it has headquarters in Sweden. The primary business of the company lies in providing IT and communications technologies to telecom operators, networking equipment, IP networking devices, video systems, mobile broadband, traditional telecommunication services and others. Headquartered in Stockholm, the company has approximately 111,456 employees, as of January 2021, and operates in about 180 countries. As of 2020, they have a well-established business in wireless communications and currently hold over 57,000 granted patents and over 100 signed licensing agreements. At, 2021 Digital Symposium virtual awards ceremony, Ericsson was awarded in the Best 5G Core Technology (Vendor) category for its dual mode 5G Core technology at the 5G Middle East and North Africa.Ericsson’s Unique Selling Proposition lies in being the best in the 5G market all over the world. Ericsson's vision is a Networked Society where connectivity brings people together. The overall Ericsson mission statement is ‘Innovating to Empower People, Business and Society, the long term business strategy and clear internal messages from the senior team that all employees are expected to contribute to the innovation efforts’.
Ericsson Revenue :
SEK 232.3 billion (FY ending – 31st December 2020)
SEK 227.2 billion (FY ending – 31st December 2019)
Competitive Analysis of Ericsson
SWOT
PESTLE
The SWOT analysis for Ericsson is presented below:
| 1. A diverse portfolio of cutting-edge technologies 2. Features top-notch positions in several global rankings 3. Increased focus on R&D and innovation 4. Global presence in around 180 countries | 1. Declining sales and EBITDA margin |
| 1. Use of analytics and complete digitization to reduce cost 2. Increase in number of connected devices 3. Strategic acquisitions and divestments scaling opportunity for growth 4. Huawei's ban creating a massive opportunity for Ericsson | 1. High competition in the telecom industry 2. Local and global operations impacted by Covid-19 |
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Detailed SWOT Analysis of Ericsson
Strength
1. A diverse portfolio of cutting-edge technologies: Ericsson has invested in developing products, services, and solutions in various technology domains like Networks, Digital Services, Industries, and Media. The company is also working in new technology like 5G-focused services and its impact on 10 different industry sectors like Automotive, Retail, Media and entertainment, Manufacturing etc. and according to the survey it conducted, about 78% of respondents agreed that their industry would take advantage of 5G to improve or develop new customer offerings. So, this gives Ericsson an advantage ahead of its competitors. A new Cloud RAN portfolio was launched in October 2020, to enhance the network flexibility, and as a supplement to high performing purpose-built networks. The company announced 44 5G contracts in 2020 and closed the year with 122 commercial agreements and 79 live 5G networks worldwide.
2. Features top-notch positions in several global rankings: Ericsson has been ranked 3rd in “Most Valuable Nordic Brands Top 50” in 2013-16, 10th in “The Most Liked Brands on LinkedIn” in 2012 and 13th in “Top 25 most valuable European Single Brands” in 2009 among many others. The company also received many awards for its various innovative works. It received “2015 Global Mobile Award” for its Connected Vehicle Cloud. Ericsson has also earned recognition for its efforts in being an award-winning employee. It was named “Russia’s Most Attractive Telecom Employer in 2014” and it was also listed in Forbes in 2014 as one of top 10 companies in the USA for “Doing the Most to Make Their Employees Happier”, among many others. Moreover, Ericsson has been awarded with “Global 100 Most Sustainable Corporations” for three consecutive years, 2019, 2020 and 2021 with 21st, 52nd, and 89th position respectively, and is recognised as the leading global company in the area of sustainability.
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Weakness
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Opportunity
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Threat
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Ericsson SWOT & PESTLE Analysis Report
1. Ericsson Annual Report 2020 - https://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_ERIC_2020.pdf
2. Ericsson Simplifies Organizational Structure - http://www.rttnews.com/2757937/ericsson-simplifies-organizational-structure.aspx
3. Ericsson Plans to Strengthen R&D - https://finance.yahoo.com/news/ericsson-plans-strengthen-r-d-195502255.html
4. European telcos sulk about EU direction on regulation and investment - http://telecoms.com/485238/european-telcos-sulk-about-eu-direction-on-regulation-and-investment/
5. Ericsson's sales worldwide by region and segment in 2020 - https://www.statista.com/statistics/549754/ericsson-sales-by-region-and-segment/
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Ericsson SWOT and PESTLE analysis has been conducted by Subhadeep Chakraborty and reviewed by senior analysts from Barakaat Consulting.
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Ericsson SWOT & PESTLE Analysis
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