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Ericsson initiates a more cost-effective, flexible sales channel

Global telecommunications equipment manufacturer expects to improve its competitive position, lower sales costs and better serve customers by implementing a flexible multichannel B2B and Web-based sales channel strategy developed by IBM Global Business Services.
Case study
Company name: Ericsson

Sweden-based global telecommunications equipment manufacturer, Ericsson, expects to improve its competitive position, lower sales costs and better serve customers by implementing a flexible multichannel B2B and Web-based sales channel strategy developed by IBM Global Business Services.
Business need
Solution
Results
Customer testimonial
Customer information
Related reports & papers
Related services & products
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Business need

Ericsson was facing stiffer competition in an increasingly commoditized marketplace, and its existing sales model, which relied heavily on direct sales, was unsustainable. It needed to provide its customers, both large and small telecom operators, with a more cost-effective, flexible means of buying Ericsson products. In part due to customer demand, Ericsson knew that it would have to expand its limited on-line sales channel, but it lacked a strategy and the technology infrastructure to do so.

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Solution

IBM Global Business Services developed an on-line e-business strategy which uses an integrated, two-pronged, approach that leverages both direct B2B and Web sales. The B2B channel, designed to facilitate call-off sales to high value customers, can be supplemented by the Web channel for sale of configurable products to those key customers. The Web portal solution will also be designed for smaller customers, allowing self-service order management for commodity and configurable products.

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Results

The combination of B2B and Web sales will allow Ericsson to tailor its sales strategy on demand, based on customer characteristics.

The company is expected to support a 30% increase in sales over four years without significant investment in sales and sales support resources.

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Customer testimonial

“IBM has helped us with a good foundation for moving on-line e-business forward.” Gustaf Carlsson, Vice President Supply, Sourcing & IT, Ericsson Enterprise AB

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Customer information
Ericsson
Ericsson is a world-leading provider of telecommunications equipment and related services to mobile and fixed network operators globally. Over 1,000 networks in 140 countries utilize Ericsson's network equipment and 40 percent of all mobile calls are made through its systems. It is one of the few companies worldwide that can offer end-to-end solutions for all major mobile communication standards.
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