Gerhard Fasol.

Tag: sanyo

  • SANYO – NOKIA CDMA2000 JV (Interview for CNBC)

    SANYO – NOKIA CDMA2000 JV (Interview for CNBC)

    Was interviewed today about the announced JV between SANYO and Nokia for CDMA2000 phone handsets (I added some corrections here):

    [Q1] How will SANYO benefit from this, since they are the ones who have the technology, what do they hope to gain from working with Nokia? Or is this merely a way to reduce costs for the company, since it’s struggling to remain profitable?

    It is clear to me that NOKIA will benefit, since NOKIA needs 3G know-how from Japan because all markets where NOKIA is dominating are behind compared to Japan in 3G development, and also NOKIA needs a lot of other advanced technology from SANYO.

    Of course who benefits depends both on the contract conditions and the relative strengths of the parties.

    It’s clear that financially NOKIA is the much stronger of the two. NOKIA is financially very strong, while SANYO is in a very weak position, so it’s a very clever move for NOKIA.

    [Q2] Is it already too late for Nokia to make such a move in the CDMA 2000 market, with strong players like Samsung, LG and Motorola already entrenched in the market?

    I don’t think it’s too late – both Motorola and NOKIA demonstrated rebounds recently with new design initiatives such as Motorola’s RAZR and NOKIA did a successsful turn-round by introducing clam-shell phones a trend which NOKIA had missed by not being linked sufficiently into Japan before.

    To succeed you need to make spectactular phones which match consumer needs, and you need the financial and manufacturing power as well as the brand. The combination of SANYO‘s technology with NOKIA’s financial strength and brand, as well as NOKIA’s efficient supply chain are a good basis.

    [Q3] When would you expect to see the benefits of such a move to emerge?

    I think one should not underestimate the cultural risks. NOKIA and SANYO have extremely different corporate cultures, and we have seen many cases where corporate cultures lead to great difficulties.

    I think the key will be to manage the difference in corporate cultures of two very proud companies. Locating the JV in the USA might help.

    SONY-Ericsson has demonstrated that such a JV can be successful. In the case of SONY-Ericsson it has taken several years for the JV to succeed. If one takes SONY-Ericsson as a measure, then it might take a couple of years (3-4 years) for this JV to succeed. If it’s faster than that it will be a positive surprise.

    Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved

  • About SANYO (CNBC and Wallstreet Journal)

    About SANYO (CNBC and Wallstreet Journal)

    Wednesday Nov 16, 2005, I was interviewed live on CBNC’s Asia Market Wrap with Christine Tan about SANYO’s plans to sell it’s financial division. Some of my friends asked me what I sad in this program – so here is my transcript from memory.

    Here is roughly what I said:

    Fundamentally I am very hopeful for SANYO. SANYO has some fantastic technologies and makes many fantastic electronics products. For example, SANYO makes some of the most fantastic mobile phones here in Japan for KDDI, and I heard just today that SANYO phones came top in customer satisfaction in the USA. Mr Kawahara at Kenwood and Mr Ghosn at Nissan and Ripplewood at Shinsei Bank have shown that it is possible to turn round Japanese companies in a very short time. What NISSAN, Ripplewood and Shinsei did, was to concentrate on their essential core business, on their strengths and sell or spin out all non-essential businesses. Nissan used to be in Aerospace and real estate business and lots of other areas which have nothing to do with cars. In the same way, I see much hope for SANYO, if SANYO focusses totally on core strengths and technologies.

    On the other hand, we have a corporation here with about US$ 20 billion in sales making US$ 1 billion loss last year and US$ 2 billion loss this year. So we clearly have an unstable situation. SANYO must take drastic action to sell non-essential assets and it’s in this light that SANYO has plans to sell the financial business, which is essentially a general banking operation which is not at all SANYO’s core business and strength.

    Christine Tan: “So which business areas do you think SANYO should sell”

    GF: I am of course in no position to tell SANYO management what to do, however their steps to sell non-core assets is certainly a good start. Looking at Kenwood, Nissan and Shinsei Bank and many others I can see many examples where excellent management has turned around Japanese companies in a very short time. I am confident that with the right management this can also be done at SANYO.

    See also: article in Wallstreet Journal about SANYO

    For general review see presentation at Stanford University

    Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved