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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
Sony

QX10 / QX100

Imagine a camera concept that promises you —

1 PORTABILITY,
2 IMAGE QUALITY,
3 CONNECTIVITY
“

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
Sony

QX10 / QX100

Imagine a camera concept that promises you —

1 PORTABILITY,
2 IMAGE QUALITY,
3 CONNECTIVITY
Value Proposition

Contents

5

FACTORS

Customer Selection

Value Capture
Strategic Control

Scope of Activities

*
Value Proposition

?

*

Key features of QX10 / QX100
WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET
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
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
Value Proposition

?

*

Key features of QX10 / QX100
WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET

iPhone

Android

COMPATIBLE

COMPATIBLE
iPhone

Android

COMPATIBLE

COMPATIBLE
UNDERSTANDING HOW IT WORKS

Sample operation of the app
iPhone

Android

COMPATIBLE

COMPATIBLE
UNDERSTANDING HOW IT WORKS

Sample operation of the app
iPhone

Android

COMPATIBLE

COMPATIBLE
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Value Proposition

?

*

Key features of QX10 / QX100
WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET

QX100

QX10
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
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
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
Value Proposition

?

*

Key features of QX10 / QX100
WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET

THE COMPETITION
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
Value Proposition

3

Connectivity

LOW

*

HIGH
Value Proposition

3

Connectivity

LOW

*

HIGH
3

LOW

HIGH

Connectivity

Smartphones

EASE OF UPLOADING ONTO SOCIAL MEDIA
HIGH

CAMERA TYPE

DSLRs,
Compact P&S

LOW

Polaroid
*

HIGH

Value Proposition

1

Portability

2

Image Quality

HIGH

LOW

LOW
Value Proposition

*
* THIS SEGMENT IS

HIGH

unserved + sought after

1

Portability

2

Image Quality

HIGH

LOW

LOW
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
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
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
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)
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
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
?
•

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)

?
Value Proposition

*
Value Proposition
Customer Selection

Value Capture
Strategic Control

Scope of Activities

*
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
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
Customer Selection

*

MATCHING CUSTOMER NEEDS

WITH STRENGTHS OF SONY
UNARTICULATED
ARTICULATED

CUSTOMER NEEDS

Customer Selection

*

Unexploited opportunities

Exploited
opportunities

SERVED

UNSERVED

CUSTOMER TYPES
UNARTICULATED
ARTICULATED

CUSTOMER NEEDS

Customer Selection

*

Unexploited opportunities

Sony Mirrorless

Exploited
opportunities

Sony QX100

SERVED

UNSERVED

CUSTOMER TYPES
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
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
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
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
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
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.
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)
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
Customer Selection

*
Value Proposition
Customer Selection

Value Capture
Strategic Control

Scope of Activities

*
Value Capture

?

*

Identifying dominant sources of revenue
FINDING WHERE THE REVENUE STREAMS ARE

1

PHYSICAL SALE OF QX10 / QX100

QX10

QX100

$248

$498
1

PHYSICAL SALE OF QX10 / QX100

QX10
$248

“

QX100
$498

Same backend technology,
different specifications,
different price points.

DIFFERENT NEEDS, DIFFERENT PROPENSITY TO SPEND

”
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
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?
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?
“

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
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
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
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
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
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
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
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
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
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
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
Value Capture

*
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
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
1

PHYSICAL SALE OF QX10 / QX100

QX10
$248

2

QX100
$498

STRATEGICALLY-CHOSEN VENUE RENTALS

MUSEUMS

FIREWORKS

ZOO / SAFARI
Value Capture

*
Value Proposition
Customer Selection

Value Capture
Strategic Control

Scope of Activities

*
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
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
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
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
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
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
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
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
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
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
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
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
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
Strategic Control

*
Value Proposition
Customer Selection

Value Capture
Strategic Control

Scope of Activities

*
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
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
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 )
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
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
Scope of Activities

?

*

Activities undertaken by Sony
WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED?

Interface App
Developed in-house
SO FT WA RE
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
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 )
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
Scope of Activities

*

Optics / Lenses
Bought externally outsourced

Interface App

Body / Sensor

Developed in-house

Constructed in-house

Battery / Memory
Designed in-house
Scope of Activities

*
Sony

QX10 / QX100

A camera concept that creates new value, in terms of —

1 PORTABILITY,
2 IMAGE QUALITY,
3 CONNECTIVITY
“

Everything in a DSLR,

less the screen,
and hence, less the price.

”
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
?

Questions?
Ang Qing Zhong
Ong Xiangrong

A0087688A
A0072333N

Teo Tze Jie
Voon Kakiong

A0072888L
A0074717Y

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Sony Detachable Lens, Business Model

  • 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. Sony QX10 / QX100 Imagine a camera concept that promises you — 1 PORTABILITY, 2 IMAGE QUALITY, 3 CONNECTIVITY
  • 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. Sony QX10 / QX100 Imagine a camera concept that promises you — 1 PORTABILITY, 2 IMAGE QUALITY, 3 CONNECTIVITY
  • 5. Value Proposition Contents 5 FACTORS Customer Selection Value Capture Strategic Control Scope of Activities *
  • 6. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET
  • 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. 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. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET iPhone Android COMPATIBLE COMPATIBLE
  • 11. UNDERSTANDING HOW IT WORKS Sample operation of the app iPhone Android COMPATIBLE COMPATIBLE
  • 12. UNDERSTANDING HOW IT WORKS Sample operation of the app iPhone Android COMPATIBLE COMPATIBLE
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET QX100 QX10
  • 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. 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. 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. Value Proposition ? * Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET THE COMPETITION
  • 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
  • 35. 3 LOW HIGH Connectivity Smartphones EASE OF UPLOADING ONTO SOCIAL MEDIA HIGH CAMERA TYPE DSLRs, Compact P&S LOW Polaroid
  • 37. Value Proposition * * THIS SEGMENT IS HIGH unserved + sought after 1 Portability 2 Image Quality HIGH LOW LOW
  • 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. 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. 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. 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. 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. 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. ? • 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) ?
  • 46. Value Proposition Customer Selection Value Capture Strategic Control Scope of Activities *
  • 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. 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. Customer Selection * MATCHING CUSTOMER NEEDS WITH STRENGTHS OF SONY
  • 50. UNARTICULATED ARTICULATED CUSTOMER NEEDS Customer Selection * Unexploited opportunities Exploited opportunities SERVED UNSERVED CUSTOMER TYPES
  • 51. UNARTICULATED ARTICULATED CUSTOMER NEEDS Customer Selection * Unexploited opportunities Sony Mirrorless Exploited opportunities Sony QX100 SERVED UNSERVED CUSTOMER TYPES
  • 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. 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. 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. 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. 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. 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. 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. 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
  • 61. Value Proposition Customer Selection Value Capture Strategic Control Scope of Activities *
  • 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. 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. 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. 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. 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. “ 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
  • 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. 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. 1 PHYSICAL SALE OF QX10 / QX100 QX10 $248 2 QX100 $498 STRATEGICALLY-CHOSEN VENUE RENTALS MUSEUMS FIREWORKS ZOO / SAFARI
  • 83. Value Proposition Customer Selection Value Capture Strategic Control Scope of Activities *
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
  • 98. Value Proposition Customer Selection Value Capture Strategic Control Scope of Activities *
  • 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. 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. 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. 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. 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. Scope of Activities ? * Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? Interface App Developed in-house SO FT WA RE
  • 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. 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. 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. Scope of Activities * Optics / Lenses Bought externally outsourced Interface App Body / Sensor Developed in-house Constructed in-house Battery / Memory Designed in-house
  • 110. Sony QX10 / QX100 A camera concept that creates new value, in terms of — 1 PORTABILITY, 2 IMAGE QUALITY, 3 CONNECTIVITY
  • 111. “ Everything in a DSLR, less the screen, and hence, less the price. ”
  • 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. ? Questions? Ang Qing Zhong Ong Xiangrong A0087688A A0072333N Teo Tze Jie Voon Kakiong A0072888L A0074717Y