Mission Statement, Vision, & Core Values (2024) of Telefonaktiebolaget LM Ericsson (publ) (ERIC)

An Overview of Telefonaktiebolaget LM Ericsson (publ) (ERIC)

General Summary of Telefonaktiebolaget LM Ericsson

Telefonaktiebolaget LM Ericsson (publ), commonly known as Ericsson, was founded in 1876. The company focuses on telecommunications and networking. It provides a wide range of products and services, including network infrastructure, managed services, and cloud solutions. As of 2024, Ericsson's primary services are concentrated in mobile networks, broadband, and services related to the Internet of Things (IoT).

In 2024, Ericsson reported sales amounting to approximately SEK 64 billion (Swedish Krona), reflecting a robust market demand for its mobile network infrastructure and software solutions.

Company's Financial Performance

In its latest financial reports, Ericsson highlighted a record-breaking revenue for Q1 2024, reaching SEK 45 billion, a significant increase compared to SEK 36 billion in the same quarter of the previous year. This growth was primarily driven by the sales of 5G infrastructure equipment and expanded service contracts.

Key financial metrics from the latest reporting period include:

Ericsson also reported strong performance in emerging markets, contributing to a 15% increase in their market share in regions like Asia and Africa.

Introduction to Company as a Leader in the Industry

Ericsson is recognized as one of the leading companies in the telecommunications industry, particularly in the realm of 5G technology. The company's pioneering advancements and significant investments in research and development have positioned it at the forefront of innovation.

The company holds more than 60,000 patents related to 5G technologies, underscoring its expertise and influence in the telecommunications sector.

• Market Position: Top 3 in global telecom equipment sales.
• Employee Count: Approximately 104,000 employees globally.
• Current Partnerships: Collaborations with major telecom operators worldwide, including Verizon and Vodafone.

To further understand why Ericsson remains successful, it is encouraged to explore its strategic initiatives and ongoing projects outlined below.

Mission Statement of Telefonaktiebolaget LM Ericsson (publ) (ERIC)

Company's Mission Statement

The mission statement of Telefonaktiebolaget LM Ericsson (publ) is a foundational element that outlines its purpose and core objectives. This mission guides the company's strategic planning and operational focus, establishing a clear framework for decision-making and resource allocation. As of 2024, Ericsson’s mission statement emphasizes the commitment to creating a more connected world through innovative technology and solutions.

Core Component 1: Innovation and Technology

Ericsson's mission highlights the importance of leading in innovation and technology. The company invests significantly in research and development (R&D) to advance networking solutions. In 2023, Ericsson invested approximately SEK 30 billion in R&D, representing about 14.3% of its total revenue of SEK 209 billion.

This high level of investment allows Ericsson to continually enhance its product portfolio, focusing on 5G technology and the evolution of mobile networks, which are critical for various sectors, including automotive, healthcare, and smart cities.

Core Component 2: Customer Focus

An essential element of Ericsson's mission statement is its dedication to customer-centricity. The company aims to empower its customers through seamless connectivity and robust network infrastructure. In 2023, Ericsson reported a customer satisfaction rating of over 85%, based on surveys from its global client base.

• Focus on delivering tailored solutions for various industries.
• Commitment to maintaining long-term partnerships with clients.
• Utilization of customer feedback to enhance products and services.

Ericsson's collaboration with major telecommunications providers, such as Verizon and AT&T, exemplifies its dedication to meeting customer needs and adapting to market changes effectively.

Core Component 3: Sustainability and Social Responsibility

Ericsson's mission reflects a commitment to sustainability and corporate social responsibility. The company aims to minimize its environmental impact while providing superior connectivity solutions. By 2023, Ericsson reported a reduction in greenhouse gas emissions by 25% since 2017, demonstrating its efforts to promote sustainable practices across its operations.

With a goal of achieving net-zero emissions across its supply chain by 2030, Ericsson continues to integrate sustainability into its corporate strategy, impacting both the environment and society positively.

Vision Statement of Telefonaktiebolaget LM Ericsson (publ) (ERIC)

Vision Statement Overview

The vision statement of Telefonaktiebolaget LM Ericsson (publ) for 2024 articulates the company's aspirations to lead the telecom industry through innovation and sustainability. It emphasizes a commitment to connectivity that drives societal progress and empowers industries.

Commitment to Technology Leadership

Ericsson's vision underlines its ambition to be at the forefront of technology. As of 2024, Ericsson is recognized as a leader in mobile broadband technology. The company invested approximately SEK 34 billion in research and development in 2023, showcasing a strong dedication to innovation.

Sustainable Development Goals

Ericsson aims to integrate the United Nations' Sustainable Development Goals (SDGs) into its business strategy. The company targets a 50% reduction in carbon emissions from its operations by 2030. In 2023, it reported a decrease of 30% compared to 2020 levels.

Empowering Digital Inclusion

The vision statement stresses the importance of digital inclusion. Ericsson has set a goal to connect an additional one billion people to the internet by 2025. In 2023, it reported that it had already connected 300 million people through its initiatives.

Enhancing Customer Partnerships

To achieve its vision, Ericsson prioritizes collaboration with partners across the telecom ecosystem. The company has formed partnerships with over 300 operators globally, focusing on co-creating solutions that enhance customer experience and network efficiency.

Table of Financial Performance Metrics

Advancing 5G and Beyond

Ericsson's vision includes leadership in 5G technology. As of 2024, it has secured contracts with more than 90 operators worldwide and has deployed over 200,000 5G radio sites globally. This positions Ericsson as a critical player in the 5G rollout.

Future Aspirations

Looking ahead, Ericsson envisions a future where connectivity enhances productivity and quality of life. The company aims to expand its portfolio in AI and machine learning, targeting a 20% increase in revenue from these segments by 2025.

Conclusion of Vision Components

Ericsson's vision statement encapsulates its goals and strategies for the future, highlighting its commitment to innovation, sustainability, digital inclusion, and strong customer partnerships. The financial performance metrics further demonstrate the company's health and capacity to achieve its vision.

Core Values of Telefonaktiebolaget LM Ericsson (publ) (ERIC)

Integrity

Integrity is a core value at Telefonaktiebolaget LM Ericsson, reflecting its commitment to ethical practices and transparency in all business dealings.

In 2023, Ericsson enhanced its compliance program, resulting in a 15% increase in internal audits to ensure adherence to ethical standards. Additionally, the company invested €30 million in training programs focused on compliance and ethical behavior, engaging over 7,000 employees globally.

Innovation

Innovation drives Ericsson's strategy, enabling the company to deliver cutting-edge solutions in communication technology.

In 2022, Ericsson invested €5.5 billion in research and development, representing 14.8% of its net sales. This investment led to the introduction of 106 new patents, enhancing its portfolio and securing its position as a leader in 5G technology.

The company launched the Ericsson 5G Intelligent Transport solution in 2023, which was adopted by over 20 partners, improving network efficiency by 25% across deployments.

Customer Centricity

Customer centricity is integral to Ericsson's operations, ensuring that client needs and feedback shape its products and services.

In 2023, Ericsson achieved a customer satisfaction score of 92%, a 4% increase from the previous year, primarily due to its enhanced support services. The company reported a 30% growth in its customer base, attributable to its focus on tailored solutions and partnerships.

• Launched the Ericsson Customer Engagement Program, which improved response times by 40%.
• Engaged in over 50 customer co-creation workshops to develop innovative solutions.

Sustainability

Sustainability is a fundamental value at Ericsson, guiding its efforts to mitigate environmental impact and promote social responsibility.

In 2023, Ericsson reduced its carbon emissions by 20% compared to 2020 levels, contributing to its goal of net-zero emissions by 2040. The company also launched the Ericsson Sustainability Report, highlighting achievements such as:

Collaboration

Collaboration is key to Ericsson's success, fostering partnerships that enhance innovation and service delivery.

In 2023, Ericsson partnered with over 100 organizations globally to drive advancements in telecommunications. The collaboration with major telecom operators led to a 35% increase in network performance metrics.

• Established the Ericsson Partner Ecosystem, which includes 200+ partners across various technology sectors.
• Participated in 30 industry forums and conferences to promote collaborative development of standards.