Ericsson, “Communication is a Basic Human Need”


In our first business visit in Stockholm we had a chance to travel to Silicon Valley of Sweden, Kista and got to know Ericsson, one of the pioneers in communications infrastructure in the world first hand.

It was fascinating to know that they have started the business over a century ago in such a small country in terms of population and how they competed with German, French and American telecommunication competitors. They have successfully expanded their market far from their homeland to south east of Asia, to countries like Indonesia and established themselves in parts of the world that were not in their competition radar.

Ericsson, as most of the Swedish companies follows the same flat management system, so as you can imagine there are a lot of people participating in the decision process. Major decisions take a little bit more time compared to other management styles but the results are usually better.

Ericsson customers are for the most part businesses not consumers which makes their sales and marketing strategy focused on clients’ need. They are training their Engineers to become the point of sales and promote their products. Their sales and marketing emphasis is localization and they were able to satisfy the needs of their 400 major clients around the globe by tailoring their products around clients’ requirements.

At the moment almost 50% of the world’s LTE smartphone traffic controlled by Ericsson’s network and they are successfully operating in 180 countries around the globe, however shrinking profit margin of their sector and operator’s sector puts them in a tough position for the years ahead. They are exploring ideas to tap into other technology sectors in order to sustain and grow their business for the years to come.