Sonyson

Content
Milestones of Sony
Nowadays Sony
Strategic Analyses
Problems
Recommandations

Milestones of Sony
1946 – Establishment of Tokyo Telecommunications Engineering Corporation by Masaru Ibuka
1946 – Electronic Rice Cooker was innovated.
1949 – First Japanese Tape Recorder

Milestones of Sony
1955 – Japan’s first transistor radio launched
1958 – Company name changed to Sony Corporation
1959 – The first transistor TV was launched

Milestones of Sony
1960 – Sony Corporation of America was established.
1967 – The first factory in abroad was opened in Taiwan.
1968 – Sony Ltd. Established in the United Kingdom.
1968 – Trinitron Color TV’s were in the shops.

Milestones of Sony
1975 – Home-use “Betamax”
1979 – Walkman
1982 – CD player

Milestones of Sony
1989 – The first miniaturized camcorder
1989 – Sony purchased Columbia Pictures.
1993 – Sony computer entertainment was established.
1994 – Sony Playstation one was started to be sold .

Milestones of Sony
1996 – Sony Home PCs (VAIO) were launched.
2001 – Sony Ericcson Mobile Communications established.
2004 – Sony BMG Music Entertainment established.

Nowadays Sony
With its ;
158.500 employees
64 billion dollars annual sales
wide product range
strong brand image
Sony is one of the most important companies in world business.

Product Range
TV
Computer
Game Consoles
Audio Equipment
Video Equipment
Mobile Phones
Movies
Music
Financial Services (only in Japan)

General Characteristics of Sony
Working Practices
Not a typical Japanese company
Integration with differant cultures
Continuous innovation
High R&D expenditures

Strategic Analyses
Generic Business Level Strategies
SWOT
Porter’s Five Forces
BCG
Competitors Analyses

Alliances
- Philips (to develop and launch CD players & CDs - 1980)
Acqusitions
- Colombia Pictures was acquired.

Differentiation
- Prestige
- Superior Quality
- Competitively High Prices
- Rapid Innovation
- High Customer Service

SWOT - Strenghts
Strong Brand Image
Worldwide Reputation
High Market Share
High Quality Products
High Technology
Pioneer in the Industry as Being Creative and Innovative
Supports R&D Activites

SWOT - Strenghts
Diversification in Manufacturing Locations Around the World
Ability to Provide High Motivation to Its Employees
Loyal Customers

SWOT - Weaknesses
Over self-confidence which’s level sometimes reaches not paying attention to their rivals.
Diversifications in unsuitable businesses for itself.
They insist on their own formats.
Competitively high prices.

SWOT - Opportunities
Continuous growth in their sectors.
Increasing demand in technological products around the world.

SWOT - Threats
Strong competiton in the market.
Short product lifecycle.
Imitation of brand name and technology.

Industry Analysis (Porter’s Five Forces)
Threat of new entrants - Low
Barganing power of buyers – High
Barganing power of suppliers – Low
Rivalry among existing firms – High
Threat of subsitute products - Low

Competitors Analyses
Audio Visual Equipments
-VHS vs Betamax
-HD-DVD vs BluRay
Game Consoles
-Nintendo,Microsoft
Mp3 Players
-Apple

Betamax versus VHS
VHS format was develop by JVC.
JVC held patent agreements with both Sony and the others about the format.So this format became popular.
Sony developed Betamax format,which became less advantageous than VHS, because Sony did not share its patent with anyone.
This cause a failure.

Blu-ray versus HD-DVD
Blu-ray by Sony and HD-DVD by Toshiba are both high density optical discs.
Both formats are supported by strong companies.
Both has competitively superior features. (Blu-ray has more capaticy but HD-DVD is cheaper)

Game Consol Competition
Nintendo
- Established in 1889 as a game card producer.
- They achieved to produce many game consoles e.g NES,SNES,Gameboy
- They could not reach the expected success in Nintendo64 and Gamecube console sales.

Nintendo
- They aim to turn back to their leader position by their new product Wii,which was launched in 2006.
- They achieved to apply both cost leadership strategy and differentiation by Wii.

Microsoft
- They are the biggest software producer.
- In 2001 they decided to produce game console which is a very different sector.
- At the end of 2002 Xbox was launched,then they became the most important competitor of Playstation 2.

Microsoft
- It could not reach the company’s expected succes, because Xbox started to be sold after PS2.
- At the end of 2005 Xbox-360 was launched.

Game Consol Competition Xbox-360 November 2005 399$ HD games,HD-DVD driver,online gaming.. Wii November 2006 249$ Extraordinary controller,online gaming... PS3 November 2006 (Japan and America) March 2007 in Europe 499$ and 599$ HD games,bluray driver,online gaming... Launch Date: Price: Features:

Mp3 Player Competition
Apple Ipod
- iPod is a brand of portable media player designed and marketed by Apple and launched in October 2001 .
- It became a very important product in mp3 player market by its extraordinary design and easy usage.

- In its first years, iPod could not gain an important success. However; due to the fact that there was no rival in the market, the product’s fame spreaded day by day.
- In 2003, iPod became the market leader.
- By being innovative, iPod protects its leader position today.

What are the Problems?
By not giving the patent of Betamax it could not be as popular as VHS.
They could not produce a superior strategy as compare to its rivals.
Their entrance time to mp3 player sector was not suitable (late). They continued to insist on their own format.

BCG MATRIX High Low High Low Market Share Market Growth Rate Video Cassettes Walkman Mp3 Player Mobile Phone Playstation

Recommendation
Should continue to be creative.
Should pay more attention to their rivals.
Sub brand which can be cost leader.
They should accept the technologies preffered by customers.

Thank you for your listening...
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Sonyson

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