Sony Detachable Lens, Business Model

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These slides use ideas from my (Jeff Funk) class to develop a business model for Sony’s detachable camera lens. This product enables users to obtain high-quality photos from a relatively small device while using a mobile phone to upload pictures to Facebook and other web sites. The quality of these high resolution photos, which can even be obtained while using the zoom function, are far better than the typical photos obtained with a camera phone. Bluetooth enables users to easily connect the lens to any phone and thus users can easily upload photos to Facebook.

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  • Hi Jeffrey. On slide 74, the photo on the right was not taken with a Sony RX100. I know this because it's my photo (http://www.anothertraveler.com/visiting-the-singapore-zoo/). Where did you get it from?
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Sony Detachable Lens, Business Model

  1. 1. Making Memories in High Definition as part of NUS MT4002 module Ang Qing Zhong Ong Xiangrong A0087688A A0072333N Teo Tze Jie Voon Kakiong A0072888L A0074717Y
  2. 2. Sony QX10 / QX100 Imagine a camera concept that promises you — 1 PORTABILITY, 2 IMAGE QUALITY, 3 CONNECTIVITY
  3. 3. “ A marriage between the image quality of a DSLR and the convenience of an iPhone. Sony QX10 / QX100 — EA R LY R E V I E W E R Imagine a camera concept that promises you — 1 PORTABILITY, 2 IMAGE QUALITY, 3 CONNECTIVITY
  4. 4. Sony QX10 / QX100 Imagine a camera concept that promises you — 1 PORTABILITY, 2 IMAGE QUALITY, 3 CONNECTIVITY
  5. 5. Value Proposition Contents 5 FACTORS Customer Selection Value Capture Strategic Control Scope of Activities *
  6. 6. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET
  7. 7. Value Proposition ? • Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET First-of-a-kind lens-style camera • • • * Screen provided by cellphone (function sharing) Battery and memory card inside Possibility for standalone operation without draining cellphone battery
  8. 8. Value Proposition ? • • Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET No hassle of wires, fuss-free wireless link between camera and cellphone screen Direct upload to social networks • • * eg. Facebook, Instagram, Twitter High quality DSLR-like pictures
  9. 9. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET iPhone Android COMPATIBLE COMPATIBLE
  10. 10. iPhone Android COMPATIBLE COMPATIBLE
  11. 11. UNDERSTANDING HOW IT WORKS Sample operation of the app iPhone Android COMPATIBLE COMPATIBLE
  12. 12. UNDERSTANDING HOW IT WORKS Sample operation of the app iPhone Android COMPATIBLE COMPATIBLE
  13. 13. UNDERSTANDING HOW IT WORKS New ways of taking pictures iPhone Android COMPATIBLE COMPATIBLE Tap to focus Self-portraits, see as you frame your shots No more self-timing shots Unique angles
  14. 14. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  15. 15. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  16. 16. OPTICAL ZOOM vs DIGITAL ZOOM How it compares with the competition? Value Proposition * ? Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY Standard 0% zoom of an airport COLOUR Optical zoom 100%— QX10 LOW-LIGHT Digital zoom 100% — cell phone cameras
  17. 17. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  18. 18. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  19. 19. COLOUR REPRODUCTION & DYNAMIC RANGE How it compares with the competition? Value Proposition * ? Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET Wider dynamic range (highlights/shadows not washed out) — QX10 COMPETING FEATURES CLARITY COLOUR LOW-LIGHT Noticeably lower dynamic range— Nokia Lumia 1020
  20. 20. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  21. 21. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  22. 22. LOW-LIGHT SENSITIVITY & IMAGE NOISE How it compares with the competition? Value Proposition * ? Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY Relatively noise-free— QX10 COLOUR LOW-LIGHT Noticeable grains— Nokia Lumia 1020
  23. 23. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  24. 24. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  25. 25. OVERALL CAMERA PERFORMANCE (SENSOR SIZE) How it compares with the competition? Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET COMPETING FEATURES CLARITY COLOUR LOW-LIGHT
  26. 26. OVERALL CAMERA PERFORMANCE (SENSOR SIZE) How it compares with the competition? Value Proposition * ? Key features of QX10 / QX100 WHAT RX100 STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET V1 Nikon Sony comparable COMPETING FEATURES CLARITY COLOUR LOW-LIGHT QX100 Sony
  27. 27. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET QX100 QX10
  28. 28. QX100 QX10 Focal length 28 - 100mm Focal length 25 - 250mm Optical zoom 3.6x Optical zoom 10x Shutter speed 1/2000 - 4s Shutter speed 1/1600 - 4s Weight 179g Weight 105g $498 $248
  29. 29. QX100 QX10 RX100 Sony $750 Focal length 28 - 100mm Focal length 25 - 250mm Optical zoom 3.6x Optical zoom 10x Shutter speed 1/2000 - 4s Shutter speed 1/1600 - 4s Weight 179g Weight 105g $498 $248
  30. 30. Value Proposition * 1 2 Portability • • Compact form-factor compared with full DSLRs Standalone battery 3 Connectivity Image Quality • 18.2 / 20.2 MP • 10x optical zoom • Performance in low-light • • Instant access to social media WiFi & NFC
  31. 31. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET THE COMPETITION
  32. 32. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET THE COMPETITION Polaroid P&S DSLRs Smartphones
  33. 33. Value Proposition 3 Connectivity LOW * HIGH
  34. 34. Value Proposition 3 Connectivity LOW * HIGH
  35. 35. 3 LOW HIGH Connectivity Smartphones EASE OF UPLOADING ONTO SOCIAL MEDIA HIGH CAMERA TYPE DSLRs, Compact P&S LOW Polaroid
  36. 36. * HIGH Value Proposition 1 Portability 2 Image Quality HIGH LOW LOW
  37. 37. Value Proposition * * THIS SEGMENT IS HIGH unserved + sought after 1 Portability 2 Image Quality HIGH LOW LOW
  38. 38. Value Proposition * QX100 2 QX10 Image Quality HTC One Samsung S4 Apple iPhone 5S Nokia Lumia 1020 4 ‘Ultra-pixel’ 13 MP 8 MP 41MP f/2.0 max aperture f/2.6 max aperture f/2.2 max aperture f/2.2 max aperture
  39. 39. Value Proposition * 1 2 Portability • • Compact form-factor compared with full DSLRs Standalone battery 3 Connectivity Image Quality • 18.2 / 20.2 MP • 10x optical zoom • Performance in low-light • Smooth pairing with Wi-Fi and NFC
  40. 40. Value Proposition * 1 2 Portability • • Compact form-factor compared with full DSLRs Standalone battery 3 Connectivity Image Quality • 18.2 / 20.2 MP • 10x optical zoom • Performance in low-light • Smooth pairing with Wi-Fi and NFC
  41. 41. Value Proposition ? • * Proposing new value propositions DIRECTIONS SONY CAN WORK TOWARDS TO CREATE NEW VALUE PROPOSITIONS Improving the technology — • Establish faster set-up times between cellphone and lens • Allowing users to save in RAW (and JPG) image formats • A more user-friendly PlayMemories app which allows editing within the app itself • More photo modes (eg. self-timer, sweep panorama, filters, intervalometer which are achievable over software updates)
  42. 42. Value Proposition ? • * Proposing new value propositions DIRECTIONS SONY CAN WORK TOWARDS TO CREATE NEW VALUE PROPOSITIONS Establishing connections beyond smartphones — • Wireless link to Sony (or other brands of) televisions or handheld devices for family viewing • New software-side technology of managing photos to permit fast, priority direct upload link to social networks • Scalable — possible to extend this to any Sony product range in future
  43. 43. Value Proposition ? • * Proposing new value propositions DIRECTIONS SONY CAN WORK TOWARDS TO CREATE NEW VALUE PROPOSITIONS Establishing connections beyond smartphones — • Current wireless link with smartphones and tablets
  44. 44. ? • Proposing new value propositions DIRECTIONS SONY CAN WORK TOWARDS TO CREATE NEW VALUE PROPOSITIONS Establishing connections beyond smartphones — • Current wireless link with smartphones and tablets • Proposed new wireless link to other gadgets with screens (not necessarily branded Sony, in a bid to support open innovation) ?
  45. 45. Value Proposition *
  46. 46. Value Proposition Customer Selection Value Capture Strategic Control Scope of Activities *
  47. 47. Customer Selection ? • • • • • * Profile of target audience FINDING OUT WHO EXACTLY WILL BUY THE QX10 / QX100 TECHNOLOGY Tech-savvy, younger demographics (vis-àvis technophobic, mature segments) Undiscriminating towards gender Social network users (eg. Facebook, Instagram, Twitter) Demand for high quality pictures Unique angles — self portraiture for solo travellers or group shots
  48. 48. Customer Selection * MATCHING CUSTOMER NEEDS Want high quality pics BUT: limited by built-in cellphone camera Want connectivity to FB BUT: worried about bulkiness of DSLR WITH STRENGTHS OF SONY
  49. 49. Customer Selection * MATCHING CUSTOMER NEEDS WITH STRENGTHS OF SONY
  50. 50. UNARTICULATED ARTICULATED CUSTOMER NEEDS Customer Selection * Unexploited opportunities Exploited opportunities SERVED UNSERVED CUSTOMER TYPES
  51. 51. UNARTICULATED ARTICULATED CUSTOMER NEEDS Customer Selection * Unexploited opportunities Sony Mirrorless Exploited opportunities Sony QX100 SERVED UNSERVED CUSTOMER TYPES
  52. 52. Customer Selection ? * Matching customer needs with company’s strengths WHY DOESN’T SONY MAINTAIN THEIR FIRST MOVER’S ADVANTAGE? AUDIO T V D I S P L AY
  53. 53. Customer Selection ? • • • * Matching customer needs with company’s strengths WHY DOESN’T SONY MAINTAIN THEIR FIRST-MOVER’S ADVANTAGE? Core competency — Always trying to serve the unserved, unarticulated segments Diversity of products — Not focused but in most cases, Sony has first-mover’s advantage Strategic control — Not Sony’s strength
  54. 54. Customer Selection ? • • • * Matching customer needs with company’s strengths WHY DOESN’T SONY MAINTAIN THEIR FIRST-MOVER’S ADVANTAGE? Core competency — Always trying to serve the unserved, unarticulated segments Diversity of products — Not focused but in most cases, Sony has first-mover’s advantage Strategic control — Not Sony’s strength
  55. 55. Customer Selection ? • • • * Matching customer needs with company’s strengths WHY DOESN’T SONY MAINTAIN THEIR FIRST-MOVER’S ADVANTAGE? Core competency — Always trying to serve the unserved, unarticulated segments Diversity of products — Not focused but in most cases, Sony has first-mover’s advantage Strategic control — Not Sony’s strength
  56. 56. Customer Selection ? • • • * So what is Sony’s strength after all? WHY DOESN’T SONY MAINTAIN THEIR FIRST-MOVER’S ADVANTAGE? Segment market I T E R AT I V E P R O C E S S Identify — • Needs in each market • Existing products in each market • Strength and weaknesses of each product Select unserved, unarticulated target segment and propose new value proposition S O N Y ’S ST R EN GT H Moving fast, constantly innovating
  57. 57. Customer Selection ? • * Customer selection strategy CHOICE OF RIGHT CUSTOMER PROFILE HELPS LONG-TERM PRODUCT SUCCESS Identify niche market for first adopters to generate sufficient revenue streams for the company — • Those who want fewer complexities of a DSLR, and retain connectivity in social networks • An age profile of 18-30 to reach out to the tech-savvy, well-travelled, modest spending power.
  58. 58. Customer Selection ? • * Customer selection strategy CHOICE OF RIGHT CUSTOMER PROFILE HELPS LONG-TERM PRODUCT SUCCESS Lock in the right customer segments to generate more revenue streams subsequently — • One-time sale of QX10 / QX100 device, or • Venue-based rentals* (charged on per usage basis) gives recurring revenues (* will be addressed in greater detail during later slides)
  59. 59. Customer Selection ? • * Customer selection strategy CHOICE OF RIGHT CUSTOMER PROFILE HELPS LONG-TERM PRODUCT SUCCESS Important to serve early (first) adopters — • Sales to these people will then fuel innovation in subsequent iterations of improved camera design and performance • Sustain the cost from R&D to produce a pioneer product and form a niche market for themselves
  60. 60. Customer Selection *
  61. 61. Value Proposition Customer Selection Value Capture Strategic Control Scope of Activities *
  62. 62. Value Capture ? * Identifying dominant sources of revenue FINDING WHERE THE REVENUE STREAMS ARE 1 PHYSICAL SALE OF QX10 / QX100 QX10 QX100 $248 $498
  63. 63. 1 PHYSICAL SALE OF QX10 / QX100 QX10 $248 “ QX100 $498 Same backend technology, different specifications, different price points. DIFFERENT NEEDS, DIFFERENT PROPENSITY TO SPEND ”
  64. 64. Value Capture ? * Value network REVENUE STREAMS FOR SONY • Sony’s primary revenue stream lies in the physical sale of product 2 • • Primarily offer QX10 / QX100 lenses through retailers at MSRP Secondarily offer PlayMemories App for free
  65. 65. Moving ahead, possibility for new revenue streams? 2 • • Primarily offer QX10 / QX100 lenses through retailers at MSRP Secondarily offer PlayMemories App for free 1 + • Venue-based rentals for QX10 / QX100 lenses?
  66. 66. New revenue stream? RENTALS 2 • • Primarily offer QX10 / QX100 lenses through retailers at MSRP Secondarily offer PlayMemories App for free 1 + • Venue-based rentals for QX10 / QX100 lenses?
  67. 67. “ But… how are we going to rent them? ” New revenue stream? RENTALS • • Travellers who don’t want the hassle of carrying a permanent camera Low-lit areas where having a DSLR lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  68. 68. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” New revenue stream? RENTALS • • • • Travellers who don’t want the hassle of carryingwho don’t want the hassle Travellers a permanent camera Low-lit areas where having a DSLR of carrying a permanent camera lens creates awhere Taken with cellphone camera Low-lit areas stark contrast a DSLR having Taken with a comparable sensor size camera — (SONY RX100) lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  69. 69. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” New revenue stream? RENTALS • • • • Travellers who don’t want the hassle of carryingwho don’t want the hassle Travellers a permanent camera Low-lit areas where having a DSLR of carrying a permanent camera lens creates awhere Taken with cellphone camera Low-lit areas stark contrast a DSLR having Taken with a comparable sensor size camera — (SONY RX100) lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  70. 70. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” Rental feasible for MUSEUMS • • Travellers who don’t want the hassle of carrying a permanent camera Low-lit areas where having a DSLR lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  71. 71. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” New revenue stream? RENTALS • • • • Travellers who don’t want the hassle of carryingwho don’t want the hassle Travellers a permanent camera Low-lit areas where having a DSLR of carrying a permanent camera lens creates awhere Taken with cellphone camera Low-lit areas stark contrast a DSLR having Taken with a comparable sensor size camera — (SONY RX100) lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  72. 72. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” New revenue stream? RENTALS • • • • Travellers who don’t want the hassle of carryingwho don’t want the hassle Travellers a permanent camera Low-lit areas where having a DSLR of carrying a permanent camera lens creates awhere Taken with cellphone camera Low-lit areas stark contrast a DSLR having Taken with a comparable sensor size camera — (SONY RX100) lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  73. 73. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” Rental feasible for FIREWORKS SHOW • • Travellers who don’t want the hassle of carrying a permanent camera Low-lit areas where having a DSLR lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  74. 74. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” New revenue stream? RENTALS • • • • Travellers who don’t want the hassle of carryingwho don’t want the hassle Travellers a permanent camera Low-lit areas where having a DSLR of carrying a permanent camera lens creates awhere Taken with cellphone camera Low-lit areas stark contrast a DSLR having Taken with a comparable sensor size camera — (SONY RX100) lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  75. 75. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” New revenue stream? RENTALS • • • • Travellers who don’t want the hassle of carryingwho don’t want the hassle Travellers a permanent camera Low-lit areas where having a DSLR of carrying a permanent camera lens creates awhere Taken with cellphone camera Low-lit areas stark contrast a DSLR having Taken with a comparable sensor size camera — (SONY RX100) lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  76. 76. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” Rental feasible for ZOO / NIGHT SAFARI • • Travellers who don’t want the hassle of carrying a permanent camera Low-lit areas where having a DSLR lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  77. 77. SIMPLE THOUGHT EXERCISE Which would you choose to upload? “ But… how are we going to rent them? ” QX 10/100 • • Travellers who don’t want the hassle of carrying a permanent camera Low-lit areas where having a DSLR lens creates a stark contrast Poor ambient lighting a characteristic problem in museums
  78. 78. Value Capture *
  79. 79. MUSEUMS FIREWORKS ZOO / SAFARI New revenue stream? RENTALS • • Travellers who don’t want the hassle of carrying a permanent camera Low-lit areas where having a DSLR lens creates a stark contrast Corollary Benefits • • Consumer will be happy to be able to try out (rent) the QX10 / QX100 before buying Attract non-adopters who have never heard of it to consider buying it
  80. 80. New revenue stream? RENTALS Corollary Benefits • FREE! BRAND PUBLICITY yet creates a new revenue stream • Consumer will be happy to be able to try out (rent) the QX10 / QX100 before buying Attract non-adopters who have never heard of it to consider buying it
  81. 81. 1 PHYSICAL SALE OF QX10 / QX100 QX10 $248 2 QX100 $498 STRATEGICALLY-CHOSEN VENUE RENTALS MUSEUMS FIREWORKS ZOO / SAFARI
  82. 82. Value Capture *
  83. 83. Value Proposition Customer Selection Value Capture Strategic Control Scope of Activities *
  84. 84. Strategic Control ? * How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? MAKING IT APPROPRIABLE MAINTAINING BARRIERS TO ENTRY
  85. 85. Strategic Control ? * How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? MAKING IT APPROPRIABLE • • Sony has not patented the technology yet Patents may be insufficient to ward off imitators
  86. 86. Strategic Control ? * How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? MAKING IT APPROPRIABLE 2 Two ways to overcome: • Focus on software, connectivity innovation as opposed to mechanical hardware which can be easily replicable • Integral design as opposed to modular
  87. 87. Strategic Control ? * How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? MAKING IT APPROPRIABLE MAINTAINING BARRIERS TO ENTRY
  88. 88. Strategic Control ? * How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? MAINTAINING BARRIERS TO ENTRY • Sony’s vast product range spans from consumer-friendly smartphones to professional grade SLR/T camera lenses
  89. 89. Strategic Control ? * How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? MAINTAINING BARRIERS TO ENTRY • Utilise Sony’s depth of expertise in UX in both areas to bridge the technology between the two as a BTE, thereby creating a niche market which naturally fortifies its barriers + = QX100
  90. 90. Strategic Control ? * How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? MAINTAINING BARRIERS TO ENTRY • Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE
  91. 91. MAINTAINING BARRIERS TO ENTRY • Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE Compact Point & Shoot DSLR/T
  92. 92. MAINTAINING BARRIERS TO ENTRY • Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE Mirrorless Micro Four-Thirds Huge sensor of DSLR/T Compact form factor of P&S
  93. 93. MAINTAINING BARRIERS TO ENTRY • Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE 3rd position in P&S market 3rd position in DSLR/T market
  94. 94. MAINTAINING BARRIERS TO ENTRY • Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE st 1 position in Mirrorless market CREATION OF NEW NICHE, UNSERVED MARKET SEGMENTS TO BE A MARKET LEADER IN
  95. 95. MAINTAINING BARRIERS TO ENTRY • Possibility to utilise Sony’s prevalent defend and extend strategy to continually explore new market segments with unserved needs with existing technological capabilities
  96. 96. MAINTAINING BARRIERS TO ENTRY • Possibility to utilise Sony’s prevalent defend and extend strategy to continually explore new market segments with unserved needs with existing technological capabilities
  97. 97. Strategic Control *
  98. 98. Value Proposition Customer Selection Value Capture Strategic Control Scope of Activities *
  99. 99. Scope of Activities ? * Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? Optics / Lenses Bought externally outsourced HA RDWA RE Body / Sensor Constructed in-house Battery / Memory Designed in-house
  100. 100. Scope of Activities ? * Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? Optics / Lenses Bought externally outsourced Body / Sensor Constructed in-house Battery / Memory Designed in-house HA RDWA RE
  101. 101. Scope of Activities ? * “ Activities undertaken by Sony Value Chain Evolution theory suggests WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? companies ought to control (integrate) the Optics / Lenses dimensions within the value chain that drive Bought externally outsourced performance which matter to customers. H A R D W A R E Body / Sensor Constructed in-house Battery / Memory Designed in-house — P R O F C L AY TO N M . C H R I S T E N S E N “ S e e i n g W h a t ’s N ex t ” ( 2 0 0 4 )
  102. 102. Scope of Activities ? * “ Activities undertaken by Sony … and INTERNALLY / WHAT IS OUTSOURCED? WHAT IS PRODUCED outsource everything else that cannot be value-added any further. Optics / Lenses Bought externally outsourced Body / Sensor — P R O F C L AY TO N M . C H R I S T E N S E N “ S e e i n g W h a t ’s N ex t ” ( 2 0 0 4 ) Constructed in-house Battery / Memory Designed in-house HA RDWA RE
  103. 103. Scope of Activities ? * Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? Optics / Lenses Bought externally outsourced Body / Sensor Constructed in-house Battery / Memory Designed in-house HA RDWA RE
  104. 104. Scope of Activities ? * Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? Interface App Developed in-house SO FT WA RE
  105. 105. Scope of Activities ? * Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? Interface App Developed in-house • Required to maintain crucial wireless link to cellphones SO FT WA RE
  106. 106. Scope of Activities ? * “ Activities undertaken by Sony Directly controlling IS OUTSOURCED? WHAT IS PRODUCED INTERNALLY / WHAT gives companies the ability to push the frontier of what is possible … [and] a Interface full platform to run experiments to solve S O F T W A R E App Developed in-house problems due to interdependency between • Required toactivities. maintain crucial wireless link to cellphones — P R O F C L AY TO N M . C H R I S T E N S E N “ S e e i n g W h a t ’s N ex t ” ( 2 0 0 4 )
  107. 107. Scope of Activities ? * Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? Interface App Developed in-house • Required to maintain crucial wireless link to cellphones SO FT WA RE
  108. 108. Scope of Activities * Optics / Lenses Bought externally outsourced Interface App Body / Sensor Developed in-house Constructed in-house Battery / Memory Designed in-house
  109. 109. Scope of Activities *
  110. 110. Sony QX10 / QX100 A camera concept that creates new value, in terms of — 1 PORTABILITY, 2 IMAGE QUALITY, 3 CONNECTIVITY
  111. 111. “ Everything in a DSLR, less the screen, and hence, less the price. ”
  112. 112. Value Proposition Customer Selection new BUSINESS MODEL Value Capture Strategic Control Scope of Activities Sony QX10 / QX100 A camera concept that creates new value, in terms of — 1 PORTABILITY, 2 IMAGE QUALITY, 3 CONNECTIVITY
  113. 113. ? Questions? Ang Qing Zhong Ong Xiangrong A0087688A A0072333N Teo Tze Jie Voon Kakiong A0072888L A0074717Y

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