Betamax vs. VHS                         Group Bdonderdag 17 juni 2010
Index    1.Introduction to facts    2.Risk Matrix    3.RWW    4.What we would have done differently    5.What Sony has lea...
Uma tic Lau nched                by Sony                         1971donderdag 17 juni 2010
Umatic                 -	The first closed-case video format                 -	Standards agreement between Sony,            ...
Betamax                                          Launche                                                 d                ...
Betamax                 -	The first home video recorder/player                 -	Initial success of 30.000 units in first   ...
V HS Lau nched                  by JVC                         1976donderdag 17 juni 2010
VHS                 - 2 hours of recording                 -	Strong focus on playback and content                 - Lower ...
Four Jap  anese                         produce rs join ed VHS                           January 1977donderdag 17 juni 2010
Betamax is j                                      oined                         by Sanyo, To                              ...
adio Co rporat ion of    R     Amer ica join s VHS                         March 1977donderdag 17 juni 2010
Law suit fi led by                            ivers al and  Disney                         Un                          to S...
Market share                                5%                          25%                                 70%           ...
Sta rt of                         price -war                                1982donderdag 17 juni 2010
To tal manuf acturing                ies produ cing video        compan            recorders  /players                    ...
Market share                           8%                                 92%            1986                           VH...
Sony announce                                       d to                          start producing                         ...
T ime ma  gazine                         publish ed the article                           ‘G oodbye  Beta’                ...
Sony b uys Co lumbia                                  1989donderdag 17 juni 2010
Risk  Matrixdonderdag 17 juni 2010
Risk Matrix X axisdonderdag 17 juni 2010
Risk Matrix X axisdonderdag 17 juni 2010
Risk Matrix Y axisdonderdag 17 juni 2010
Risk M atrix Y axisdonderdag 17 juni 2010
New to company                                          Risk Matrix                                              35       ...
R WW A n alysis  Is it Real?             Can we Win?          Is it Worth doing?                                        E ...
I ndustry A  nalysis:           ’s 5 Forces                                                                    This gives ...
So why did                          they fail?donderdag 17 juni 2010
Mi stakes       No focus on consumer demands       •No Content       •Quality vs tape length trade off       Positioning o...
Sol utions             ‘Whole Product Experience’                               by Theodore Levitt                        ...
Sol utions                      Product Value Matrix                                Customer         Betamax              ...
Reco mmend ation      Listen to ‘customers’          “We don’t believe in market research for a new          product unkno...
Le ssons learned                                VS.                    Listen to ‘customers’donderdag 17 juni 2010
Q&Adonderdag 17 juni 2010
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VHS vs Betamax - Listen to Customer

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Transcript of "VHS vs Betamax - Listen to Customer"

  1. 1. Betamax vs. VHS Group Bdonderdag 17 juni 2010
  2. 2. Index 1.Introduction to facts 2.Risk Matrix 3.RWW 4.What we would have done differently 5.What Sony has learned 6.Q&Adonderdag 17 juni 2010
  3. 3. Uma tic Lau nched by Sony 1971donderdag 17 juni 2010
  4. 4. Umatic - The first closed-case video format - Standards agreement between Sony, Matsushitha, JVC and five non-Japanese manufacturers - Used by News Corporations, Schools, and Businesses - Too pricey to enter homesdonderdag 17 juni 2010
  5. 5. Betamax Launche d by Sony 1974donderdag 17 juni 2010
  6. 6. Betamax - The first home video recorder/player - Initial success of 30.000 units in first year (U.S.A) - Tape playtime of 1 hour - Strong focus on recording and qualitydonderdag 17 juni 2010
  7. 7. V HS Lau nched by JVC 1976donderdag 17 juni 2010
  8. 8. VHS - 2 hours of recording - Strong focus on playback and content - Lower quality than Betamax - Initially priced same, though later dropped a bitdonderdag 17 juni 2010
  9. 9. Four Jap anese produce rs join ed VHS January 1977donderdag 17 juni 2010
  10. 10. Betamax is j oined by Sanyo, To shiba and Zenith February 1977donderdag 17 juni 2010
  11. 11. adio Co rporat ion of R Amer ica join s VHS March 1977donderdag 17 juni 2010
  12. 12. Law suit fi led by ivers al and Disney Un to Son y (Bet amax) 1979donderdag 17 juni 2010
  13. 13. Market share 5% 25% 70% 1981 VHS Betamax Otherdonderdag 17 juni 2010
  14. 14. Sta rt of price -war 1982donderdag 17 juni 2010
  15. 15. To tal manuf acturing ies produ cing video compan recorders /players 23% 1982 77% VHS Betamaxdonderdag 17 juni 2010
  16. 16. Market share 8% 92% 1986 VHS Betamaxdonderdag 17 juni 2010
  17. 17. Sony announce d to start producing VHS machines 1988donderdag 17 juni 2010
  18. 18. T ime ma gazine publish ed the article ‘G oodbye Beta’ 1988donderdag 17 juni 2010
  19. 19. Sony b uys Co lumbia 1989donderdag 17 juni 2010
  20. 20. Risk Matrixdonderdag 17 juni 2010
  21. 21. Risk Matrix X axisdonderdag 17 juni 2010
  22. 22. Risk Matrix X axisdonderdag 17 juni 2010
  23. 23. Risk Matrix Y axisdonderdag 17 juni 2010
  24. 24. Risk M atrix Y axisdonderdag 17 juni 2010
  25. 25. New to company Risk Matrix 35 45-60% 60-75% 75-95% 30 product technology Adjacent to current 25 40-50% 20 15 25-40% Same as current 10 10 15 20 25 30 Same as current Adjacent to current New to company intended marketdonderdag 17 juni 2010
  26. 26. R WW A n alysis Is it Real? Can we Win? Is it Worth doing? E S Is the market real? Can the product be Will the product be profitable competitive? at an acceptable risk? Is the product real? Can our company be Does launching the product competitive? make strategic sense?donderdag 17 juni 2010
  27. 27. I ndustry A nalysis: ’s 5 Forces This gives an average of 34,6 Porter which makes the buyers power relatively great, with industry standard being above 23.5. Suppliers power Especially with 6 sigma in place and JIT rising. H Substitutes available Correlation is key L Differentiation of inputs H Bargaining leverage L Buyer volume Barriers to entry Rivalry Buyers power L Brand identity M Proprietary learning curve M Economies of scale H Distribution & retail H Product differentiation H Switching costs H Expected retaliation M Trade offs Thread of substitutesdonderdag 17 juni 2010
  28. 28. So why did they fail?donderdag 17 juni 2010
  29. 29. Mi stakes No focus on consumer demands •No Content •Quality vs tape length trade off Positioning of Betamax in home recording •Sony did not see value of rental videos •Not partnering with the right 3rd parties (RCA, Blockbusters, Movie studios) Missed early warning bells •RCA request •JVC salesdonderdag 17 juni 2010
  30. 30. Sol utions ‘Whole Product Experience’ by Theodore Levitt Partners Content Customer valuedonderdag 17 juni 2010
  31. 31. Sol utions Product Value Matrix Customer Betamax VHS 5 4 3 2 1 0 Video Quality Tape Length Availability of movies Costdonderdag 17 juni 2010
  32. 32. Reco mmend ation Listen to ‘customers’ “We don’t believe in market research for a new product unknown to the public . . . so we never do any. We are the experts’’ Morita ‘CEO Sony 1946 - 1994’donderdag 17 juni 2010
  33. 33. Le ssons learned VS. Listen to ‘customers’donderdag 17 juni 2010
  34. 34. Q&Adonderdag 17 juni 2010

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