Sony Shockwave Presentation

Questions
1. Discuss the importance of product innovation to the future success of Sony in regard to the changing marketing environment environment. 2. Conduct a SWOT analysis on Sony. 3. What are the strategic options available to Sony, in y , the wake of “Sony Shock”? Furthermore, recommend a course of action for Sony.

Q1. Importance of Product Innovation to Sony s Sony’s Future Success

Product innovation enables Sony to: Retain its brand status Benefit from innovative products – higher prices Add to the brand’s reputation as innovative products are seen as technologically superior Maintain dominant industry position Reduce the risk of technological leapfrog Set proprietary standards

Q1. Continued…Product Innovation:
Creates demand Acts as a barrier to entry for potential new entrants Helps create new markets Helps reposition a business Helps in defending market share

Q2. SWOT Analysis: Strengths
Global Size and Market Share Presence in numerous markets Solid brand image Creates market-defining products Experience and strength of brand Level of vertical integration Strength of “Playstation” Brand Japanese Strength in Electronic Engineering Design Alliances with other manufacturers Alli ith th f t Exposure to global markets New leadership

Q2. Continued… SWOT Analysis: Weaknesses
Overcapacity Too broad a product range Low profit margins Collapse of Cathode Ray Television market Cathode-Ray Bureaucratic culture
Sony’s development of new technology – too slow y p gy Failing to focus on its core operations Slow to market products Over reliance on ‘Playstation’

Q2. Continued…SWOT Analysis: Opportunities
Expansion of global presence Taking advantage of producing in low cost economies New technology which could become industry standard, encourage upgrading to newer versions and leading to new product opportunities Model count reduction and investment in manufacturing capabilities to improve efficiencies. S Sony di ti non-strategic assets divesting Utilise electronic platforms to distribute products Further integration of business Creating interoperability Develop crossover products

Q2. Continued… SWOT Analysis: Threats
Increased foreign competition g p Increased commoditisation of products Technologically leapfrogged Changing technology altering the competitive landscape Boardroom clashes with partners such as BMG and Ericsson Heavily reliant on Japanese market Reliant on fickle entertainment industry Changing consumer behaviour in terms of downloading versus using storage discs Failure to successfully implement turnaround strategy

Q3. Strategic Options:
New management team Move production to low cost economies Renew and revitalise advertising campaign and focus on brand image Continue aggressive price promotions Continue to reduce inventory levels Introduce innovative products Greater investment in R&D Exit personal computing market Improve d distribution network b k Rethink product portfolio C Consider partnerships and reorganization