With an increasingly liberalised regional telecommunications sector that is boosting cellular subscriptions and a transient labour force with high disposable incomes, the Middle East presents a lucrative market for handset vendors such as Sony Ericsson.
The company has successfully fused innovative technology and core brand competencies to develop cellular products that are achieving significant business across the region, but particularly in the countries of the GCC.
Sony Ericsson was established as a joint venture by handset manufacturer Ericsson and consumer electronics giant Sony in October 2001.
Sony Ericsson general manager, MEA, Husni Al Assi claims the combination of each company's core competencies provides the joint venture with clear advantages over its competitors in the handset market.
With digital cameras and MP3 players fast becoming ubiquitous handset features, Sony Ericsson's recent launch of its Cybershot and Walkman handset ranges can be seen as a direct attempt to tap the brand heritage forged by Sony in both markets respectively.
"Both companies' strengths are complementary; Ericsson is a leader in telecom infrastructure while Sony is a leader in the consumer electronics sector," claims Al Assi.
Al Assi describes the Middle East as one of Sony Ericsson's key global markets in terms of sales growth potential, citing the dynamic nature of the regional retail sector and a consumer demographic flush with purchasing power.
"The Middle East and Africa combined is one of the fastest growing regions in the world in terms of mobile subscription rates," Al Assi explains.
"Subsequently, the region has grown in commercial importance internationally. In an effort to tap this, we have expanded our marketing activities and are working more closely with channel partners in an effort to achieve a result."
Al Assi cites the company's key growth markets as Saudi Arabia, Iran, Egypt, Algeria and Nigeria - the bulk of which are serviced by Sony Ericsson's regional headquarters in Dubai.
"The demand for mobile products is booming in most countries in the Middle East, especially as competition arises between operators as a result of increased cellular market liberalisation. We have achieved significant success in Saudi Arabia, UAE, Morocco, Algeria, Nigeria and South Africa."
Sony Ericsson recently established offices in Saudi Arabia and Algeria in a bid to better service both markets.
"Our market share in the Middle East and Africa is growing rapidly - faster than our average rate of growth worldwide. Our core strengths lie in the features and technological specifications of our phones and the effective distribution and marketing strategies we employ as a corporation."
Al Assi explains that Sony Ericsson employs multiple distributors in most countries across the region, each of which work with the company on a non-exclusive basis.
"These distributors deal with the retailers and resellers in each market. We support them with advertising and marketing and they manage our local activities. Many of the distributors also boast a retail presence themselves," he says.
"The mobile phone retail business is developing rapidly across the Middle East, particularly in countries such as Saudi Arabia. We are increasingly attracting interest from mainstream electronics stores looking to carry our Cybershot or Walkman handset ranges, thanks to the brand recognition in the consumer sector."
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