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Sonyson

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Sonyson

  1. 2. Content <ul><li>Milestones of Sony </li></ul><ul><li>Nowadays Sony </li></ul><ul><li>Strategic Analyses </li></ul><ul><li>Problems </li></ul><ul><li>Recommandations </li></ul>
  2. 3. Milestones of Sony <ul><li>1946 – Establishment of Tokyo Telecommunications Engineering Corporation by Masaru Ibuka </li></ul><ul><li>1946 – Electronic Rice Cooker was innovated. </li></ul><ul><li>1949 – First Japanese Tape Recorder </li></ul>
  3. 4. Milestones of Sony <ul><li>1955 – Japan’s first transistor radio launched </li></ul><ul><li>1958 – Company name changed to Sony Corporation </li></ul><ul><li>1959 – The first transistor TV was launched </li></ul>
  4. 5. Milestones of Sony <ul><li>1960 – Sony Corporation of America was established. </li></ul><ul><li>1967 – The first factory in abroad was opened in Taiwan. </li></ul><ul><li>1968 – Sony Ltd. Established in the United Kingdom. </li></ul><ul><li>1968 – Trinitron Color TV’s were in the shops. </li></ul>
  5. 6. Milestones of Sony <ul><li>1975 – Home-use “Betamax” </li></ul><ul><li>1979 – Walkman </li></ul><ul><li>1982 – CD player </li></ul>
  6. 7. Milestones of Sony <ul><li>1989 – The first miniaturized camcorder </li></ul><ul><li>1989 – Sony purchased Columbia Pictures. </li></ul><ul><li>1993 – Sony computer entertainment was established. </li></ul><ul><li>1994 – Sony Playstation one was started to be sold . </li></ul>
  7. 8. Milestones of Sony <ul><li>1996 – Sony Home PCs (VAIO) were launched. </li></ul><ul><li>2001 – Sony Ericcson Mobile Communications established. </li></ul><ul><li>2004 – Sony BMG Music Entertainment established. </li></ul>
  8. 9. Nowadays Sony <ul><li>With its ; </li></ul><ul><li>158.500 employees </li></ul><ul><li>64 billion dollars annual sales </li></ul><ul><li>wide product range </li></ul><ul><li>strong brand image </li></ul><ul><li>Sony is one of the most important companies in world business. </li></ul>
  9. 10. Product Range <ul><li>TV </li></ul><ul><li>Computer </li></ul><ul><li>Game Consoles </li></ul><ul><li>Audio Equipment </li></ul><ul><li>Video Equipment </li></ul><ul><li>Mobile Phones </li></ul><ul><li>Movies </li></ul><ul><li>Music </li></ul><ul><li>Financial Services (only in Japan) </li></ul>
  10. 11. General Characteristics of Sony <ul><li>Working Practices </li></ul><ul><li>Not a typical Japanese company </li></ul><ul><li>Integration with differant cultures </li></ul><ul><li>Continuous innovation </li></ul><ul><li>High R&D expenditures </li></ul>
  11. 12. Strategic Analyses <ul><li>Generic Business Level Strategies </li></ul><ul><li>SWOT </li></ul><ul><li>Porter’s Five Forces </li></ul><ul><li>BCG </li></ul><ul><li>Competitors Analyses </li></ul>
  12. 13. Generic Business Level Strategies <ul><li>Alliances </li></ul><ul><li>- Philips (to develop and launch CD players & CDs - 1980) </li></ul><ul><li>Acqusitions </li></ul><ul><li>- Colombia Pictures was acquired. </li></ul>
  13. 14. Generic Business Level Strategies <ul><li>Differentiation </li></ul><ul><li>- Prestige </li></ul><ul><li>- Superior Quality </li></ul><ul><li>- Competitively High Prices </li></ul><ul><li>- Rapid Innovation </li></ul><ul><li>- High Customer Service </li></ul>
  14. 15. SWOT - Strenghts <ul><li>Strong Brand Image </li></ul><ul><li>Worldwide Reputation </li></ul><ul><li>High Market Share </li></ul><ul><li>High Quality Products </li></ul><ul><li>High Technology </li></ul><ul><li>Pioneer in the Industry as Being Creative and Innovative </li></ul><ul><li>Supports R&D Activites </li></ul>
  15. 16. SWOT - Strenghts <ul><li>Diversification in Manufacturing Locations Around the World </li></ul><ul><li>Ability to Provide High Motivation to Its Employees </li></ul><ul><li>Loyal Customers </li></ul>
  16. 17. SWOT - Weaknesses <ul><li>Over self-confidence which’s level sometimes reaches not paying attention to their rivals. </li></ul><ul><li>Diversifications in unsuitable businesses for itself. </li></ul><ul><li>They insist on their own formats. </li></ul><ul><li>Competitively high prices. </li></ul>
  17. 18. SWOT - Opportunities <ul><li>Continuous growth in their sectors. </li></ul><ul><li>Increasing demand in technological products around the world. </li></ul>
  18. 19. SWOT - Threats <ul><li>Strong competiton in the market. </li></ul><ul><li>Short product lifecycle. </li></ul><ul><li>Imitation of brand name and technology. </li></ul>
  19. 20. Industry Analysis (Porter’s Five Forces) <ul><li>Threat of new entrants - Low </li></ul><ul><li>Barganing power of buyers – High </li></ul><ul><li>Barganing power of suppliers – Low </li></ul><ul><li>Rivalry among existing firms – High </li></ul><ul><li>Threat of subsitute products - Low </li></ul>
  20. 21. Competitors Analyses <ul><li>Audio Visual Equipments </li></ul><ul><li>-VHS vs Betamax </li></ul><ul><li>-HD-DVD vs BluRay </li></ul><ul><li>Game Consoles </li></ul><ul><li>-Nintendo,Microsoft </li></ul><ul><li>Mp3 Players </li></ul><ul><li>-Apple </li></ul>
  21. 22. Betamax versus VHS <ul><li>VHS format was develop by JVC. </li></ul><ul><li>JVC held patent agreements with both Sony and the others about the format.So this format became popular. </li></ul><ul><li>Sony developed Betamax format,which became less advantageous than VHS, because Sony did not share its patent with anyone. </li></ul><ul><li>This cause a failure. </li></ul>
  22. 23. Blu-ray versus HD-DVD <ul><li>Blu-ray by Sony and HD-DVD by Toshiba are both high density optical discs. </li></ul><ul><li>Both formats are supported by strong companies. </li></ul><ul><li>Both has competitively superior features. (Blu-ray has more capaticy but HD-DVD is cheaper) </li></ul>
  23. 24. Game Consol Competition <ul><li>Nintendo </li></ul><ul><li>- Established in 1889 as a game card producer. </li></ul><ul><li>- They achieved to produce many game consoles e.g NES,SNES,Gameboy </li></ul><ul><li>- They could not reach the expected success in Nintendo64 and Gamecube console sales. </li></ul>
  24. 25. Game Consol Competition <ul><li>Nintendo </li></ul><ul><li>- They aim to turn back to their leader position by their new product Wii,which was launched in 2006. </li></ul><ul><li>- They achieved to apply both cost leadership strategy and differentiation by Wii. </li></ul>
  25. 26. Game Consol Competition <ul><li>Microsoft </li></ul><ul><li>- They are the biggest software producer. </li></ul><ul><li>- In 2001 they decided to produce game console which is a very different sector. </li></ul><ul><li>- At the end of 2002 Xbox was launched,then they became the most important competitor of Playstation 2. </li></ul>
  26. 27. Game Consol Competition <ul><li>Microsoft </li></ul><ul><li>- It could not reach the company’s expected succes, because Xbox started to be sold after PS2. </li></ul><ul><li>- At the end of 2005 Xbox-360 was launched. </li></ul>
  27. 28. 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:
  28. 29. Game Consol Competition
  29. 30. Mp3 Player Competition <ul><li>Apple Ipod </li></ul><ul><li>- iPod is a brand of portable media player designed and marketed by Apple and launched in October 2001 . </li></ul><ul><li>- It became a very important product in mp3 player market by its extraordinary design and easy usage. </li></ul>
  30. 31. Mp3 Player Competition <ul><li>- 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. </li></ul><ul><li>- In 2003, iPod became the market leader. </li></ul><ul><li>- By being innovative, iPod protects its leader position today. </li></ul>
  31. 32. Mp3 Player Competition
  32. 33. What are the Problems? <ul><li>By not giving the patent of Betamax it could not be as popular as VHS. </li></ul><ul><li>They could not produce a superior strategy as compare to its rivals. </li></ul><ul><li>Their entrance time to mp3 player sector was not suitable (late). They continued to insist on their own format. </li></ul>
  33. 34. BCG MATRIX High Low High Low Market Share Market Growth Rate Video Cassettes Walkman Mp3 Player Mobile Phone Playstation
  34. 35. Recommendation <ul><li>Should continue to be creative. </li></ul><ul><li>Should pay more attention to their rivals. </li></ul><ul><li>Sub brand which can be cost leader. </li></ul><ul><li>They should accept the technologies preffered by customers. </li></ul>
  35. 36. Thank you for your listening... <ul><li>Koray Yeşildağ </li></ul><ul><li>Yelda Durmaz </li></ul><ul><li>Alp Yıldırım </li></ul>

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