2. Presentation
CONTENT
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
3. Presentation
CONTENT
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
4. Background
SONY Corporation
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Company name: SONY Corporation
Founded: May 7, 1946
Head quarter: Tokyo, Japan
Major Products:
• Audio, Video, Information and Communication
• Television
• Components, others.
Market dominance in Television industry in 1968s
Facing a strong decline in TV market
5. Presentation
CONTENT
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
6. Market analysis
Television Market Segments
LCD PDP RPTV
SONY O O O
SHARP O
PHILIPS O O
LG O O O
MATSUSHITA O
SAMSUNG O O O
Market fragmentation
Strong players create high competition
7. -500
500
1500
2500
3500
4500
5500
6500
7500
8500
Market analysis
LCD Price competition
36 – 46 inches
30 – 36 inches
21 – 29 inches
10 – 20 inches
Sony
Sharp
Philips
Samsung
LG
High competition in supply
SONY positioned by premium prices in large screen TVs
Price: Ave. price of all models
Scale: No. of models
8. 0
5000
10000
15000
20000
Market analysis
PDP Price competition
57 – 66 inches
47 – 56 inches
37 – 46 inches
Sony
Matsushita
Philips
Samsung
LG
High competition of models
SONY positioned by premium price
Price: Ave. price of all models
Scale: No. of models
9. 0
2000
4000
6000
8000
10000
12000
Market analysis
RPTV Price competition
57 – 66 inches
47 – 56 inches
37 – 46 inches
Sony
Samsung
LG
> 66 inches
Less competition in the segment
SONY positioned by relatively high price
Price: Ave. price of all models
Scale: No. of models
10. Market analysis
Product Sales results
984,290
950,166
917,207
135,000
140,000
145,000
150,000
155,000
160,000
165,000
170,000
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2000 2001 2002 2003 2004
LCD
PDP
CRT
Sony Sales
LCD & PDP increase rapidly while CRT drops significantly
SONY losing sales in television industry
11. Market Analysis
SONY Developing process
1960s 1968 1990s 2000 2003 2004
•B&W TVs
•CRT TVs
•Trinitron •EDTV
•HDTV
•FPD TVs •Wega engine
•Qualia
•LCD TVs
Blooming of Digital tech
Level of Competition
Industry leader
Losing in
competition
Market is fragmented and high competitive
SONY losing position in the industry
12. Presentation
CONTENT
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
16. Presentation
CONTENT
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
17. SWOT Analysis
External & Internal
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Strengths and Weaknesses -5 -4 -3 -2 -1 0 1 2 3 4 5
Strong corporate brand identity X
Slow response to innovations in TV technology X
Joint venture with Samsung X
Less economy of scale X
Poor forecast on market X
Unable to reduce cost of production X
Exit PDP market X
High switching cost X
Foreigner management (New CEO and Chairman) X
19. Presentation
CONTENT
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
20. What to do?
ANSOFF Matrix
Focus on developing product in current markets
Strengthen big screen in RPTV segment
Market
Penetration
Product
Development
Market Development Diversification
Current Product New Product
Current
market
New
market
21. What to do?
Marketing Mix
Improving Marketing Mix
Marketing
Mix
Product
Improving Product quality and
innovativeness
Place
Broaden distribution network
to cover market
Promotion
Non-cash promotion to
high-end customers
Price
More competitive prices in
lower segments
22. What to do?
Other activities
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
Sony’s difficult position caused by the wrong marketing strategies
and high competition of the industry.
Erroneous forecast of the time:
FPD TVs would take-off only by 2005.
High competition of the industry :
Technology innovation in high end market
Low cost manufacture in low end market
Always try to lower manufacturing costs, but the industry is
in the period of technology-orientation.
Sony went against the industry trend by 2001.
23. What to do?
Other activities
Team Two Contact Us
Keiko, Shankar, Toto, Roger, Andy
How to eliminate trouble ? -- Sony’s core value: Innovation
The first transistor radio:
Establish a global presence
Micro TV:
Gain respect and earn
a reputation for quality
Sony trinitron TV:
Set the quality standard
for television manufacturers
worldwide.
Sony’s successes always
kept in line with its
product innovation.
24. What to do?
Market forecast
LCD segment expanding rapidly
Other segments remain stable
Focus more on LCD segment
