Mobile Phone Manufacturer, Sony Ericsson has discontinued its office in Pakistan and has decided to manage sales and distribution of its products in Pakistan from the company’s Middle East and Northern Africa regional hub office in Dubai (UAE).
A company statement that confirmed this information also said that Pakistan will continue to be an important market for Sony Ericsson and that, as part of its plan to align its operations and resources world-wide, Pakistani market will be managed from Dubai after local office was closed on September 30th, 2008.
There are many speculations about this decision that includes Sony and Ericsson internal relations, which actually lead Sony’s CEO Howard Stringer commenting that the two companies need to reform their cooperation otherwise the joint venture would fail.
This decision of closure of Pakistan’s office can be part of world over reorganization of the company that will reason many job cuts world over, including USA.
In a company statement issued lately from London, England, it admitted that “market conditions have changed very rapidly and action must be taken to ensure that it can remain competitive in the dynamic and fast-paced telecommunications industry.”
“Today the company confirms that it is beginning to implement a plan to align its operations and resources worldwide to meet an increasingly competitive business environment and to help restore its capability for profitable growth. The measures that are being taken by Sony Ericsson are aimed at becoming a faster, more agile and more cost efficient organization.”
According to Pakistani market resources, Sony Ericsson handsets were out of stock since the end of first quarter of 2008. ApnaTime recently reported that Sony Ericsson’s newly appointed distributor Teletec Mobile was not able to purchase stock on cash since its appointment. Analysis were made that this happened to avoid market risks. On other hands, local management failed in finding another distributor. However, now the chapter has been officially closed and Sony Ericsson will serve Pakistani Market from Dubai.