Business intelligence: LM Ericsson

15Aug2012

Although it’s not a local Chinese Company, LM Ericsson is one of the most famous mobile brands in China. The company owns nearly 50% of the market share for mobile phones.

Ericsson’s history in China

Ericsson entered the Chinese market as early as the 1890s, but did not really establish its name until 1994 when it established Ericsson China Ltd. Three years later, China became its largest market. The company has also developed several research and training facilities in China. In 1997, it founded the Ericsson Communication Software Research and Development Center in Shanghai and the Ericsson China Academy. In addition, it offers short-term training courses for Ericsson employees and customers at its Beijing training facility. Ericsson also opened a research and development center for WCDMA technology in 1999 and a research center for mobile communication.

Recruiting Chinese students

Ericsson puts a lot of effort into the recruitment of its task force, primarily concentrating on Chinese students as its recruiting pool. Judging from the statistics and news from its website, Ericsson has developed a long-term relationship with various universities in China, including Tsinghua University, Dongnan University and other top Universities (Ericsson 2011). China has always been the most profitable market for Ericsson, but it has taken the company several years to establish its brand name and develop relationships with Chinese companies. The company’s extensive market research and recruiting efforts are expanding expectation among Ericsson and the Chinese market for the company to gain a large market share in China’s mobile phone industry(Ghauri Pervez and Tony Fang,2001). By providing platform to learn, research, communicate and practice for these promising students, Ericsson is receiving returns on its investment and cultivating innovative employees. Also, by being dedicated to the Chinese education system, Ericsson is actually gaining potential share market among teenagers and expanding its target market.

Ericsson’s corporate social responsibility

Ericsson is executing corporate social responsibility in a highly effective approach. For large corporations, corporate social responsibility and giving back to the community or society is crucial to gain a positive brand image. Companies always keep an eye on how well they execute their corporate social responsibility strategy and how they are perceived by the public. Ericsson is no different and employs corporate social responsibility in China by providing telephone networks for the mountainous areas in China. By helping these remote areas, it is actually gaining a good reputation. In addition, by enabling communication in areas that normally would not have it, the company is expanding its consumer base

Chinese people are always more willing to buy products that produced by famous brands or brands with good reputation.

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