The ’furniture radios’ used Vacuumtubes, and therefore they were big and demanded a lot of energy.
In order to sell transistor radios, Sony had to create a new channel. The Radio stores made money on repairing furniture radios and were therefore not interested in selling small, cheap transistor radios which did not generate service revenues.
Sony dealt withdiscount storeslike Woolworth which did not have any service departments.
The Transistor Radios were smaller,cheaper and demanded less energy…
The ’SONY’ became a great successand therefore Tokyo Tsushin Kogyo changed its name to SONY
Initially Transistor Radiosdid not threat the big radios,simply because it prospered in a new market.
It was a New Market Disruptive Innovation, aproduct that would prosper in a new market and then later on invade the established market.
Let’s take a look at the marketing of transistor radios…
Home transistorAn ideal, portable, ’second radio’ and for your summer house