Abstract
In 1980, SRA was a small and autonomous subsidiary of Ericsson whose president was Ake Lundqvist. Ericsson was one of the biggest public telecommunications company at that time when Bjorn Lundvall was the CEO. The text focuses on the entry of Ericsson in the mobile telephone market. Indeed, it raises several problems, and the major one can be the role played by the centre and the peripheral divisions. How to drive innovation in such a case? How to deal with risk-taking? How to manage increasing tensions and cultural conflicts between divisions? One can answer these strategic issues through the provided questions. First of all, we will identify the statement of Ericsson's CEO about the development of his own business and about the development of SRA's business. Then, we will focus on the future of the potential market for mobile telephones. In 1980, what was the opinion of Ericsson's CEO about both his company and about SRA's vision? Finally, we will highlight the capabilities and the competences of Ericsson and of SRA.
