Apple focuses on innovation and developing products that meet customer needs, both expressed and latent. They pursue product differentiation over low prices by offering a wide range of high-quality products with unique designs. Their differentiation strategy allows them to charge premium prices. Sony is facing declining profits, value, and workforce issues. Their profit and value have substantially decreased due to economic slowdowns, currency appreciation, and market declines. They are eliminating non-core businesses and reducing operating costs, workforce, and executive pay. To turn things around, Sony plans to strengthen core businesses, lower costs, raise new markets, and create new businesses and innovation.

1. SM ASSIGNMENT
–By MonikaBansal, 119
Ques.3 a) Innovation came from Apple only. They decided its products by
keeping the needs of its customers and also analyzing the needs that customer
doesn’t know at that point of time but they will need it afterwards as Jobs said “We
figure out what we want. And I think we’re pretty good at having the right discipline to think through
whether a lot of other people are going to want it, too. That’s what we get paid to do.” So they are
developing product accordingly.
b) Apple cares more about its existing customers than anyone else. They listen only
to their best customers and they designed their products according to the feasibility
of their recommendation.
c) Apple pursued more towards differentiation strategy as Apple offers a wide
range of products in personal computers field like the iMac and iBook product
lines for basic computer buyers and PowerBook and G series computers for
advanced purchasers. Apple concentrates more on innovative product lines and
quality rather than releasing products at lower prices. Only one time they offered a
computer aiming for the mass market, but soon came back to their differentiation
strategy. Apple computers work on Macintosh operating system which is unique in
the industry where most others rely upon Windows. Apple has diversified its
product range off late through iPods, the success of which has further enhanced
Apple's brand identity. None of Apple's competitors have been able to replicate its
unique product quality, reliability and design. Because of the differentiation
strategy, Apple is able to charge premium prices for their products.
Ques.4 a) Sony problem in terms of
i) Profit- Sony’s profit is declining due to decreased demand and
intensified pressure on pricing resulting from the slowdown of the
global economy, appreciation of the yen, and a significant decline in
the Japanese stock market. As a result, both an operating loss and a
net loss have been recorded in Sony’s financial reports. The company
is drowning in debt and historical net losses. As its share price hit a
32- year a low in November 2012. There is 70% business loss in
televisions.

2. ii) Value
Sony’s value is decreasing and it has substantially decreased as compared to year
2007. Sony's market value is now only about $13 billion.
iii) People- Need to eliminate extra workforce for non- core
businesses.Sony is cutting down its workforce to a great extent in
order to reduce their operating expense that’s why Sony is
implementing the following employment-related measures at Sony
Corporation to respond to the significant deterioration of operating
results:
Remuneration
• Corporate Executive Officer and Corporate Executive bonuses for the fiscal
year ended March 31, 2009 were substantially reduced. In addition, fixed
remuneration was decreased from April 2009.
• In particular, the three Representative Corporate Executive Officers as of
March 31, 2009 waived their entire bonuses for the fiscal year ended
March 31, 2009.

3. • With regard to management level employees, bonuses were reduced
significantly and base salaries were reduced from April 2009.
Early Retirement Program
• In order to optimize human resources, Sony has implemented an early
retirement program supporting employees who take up new opportunities
beyond the Sony Group.
b) E-R-R-C Grid for Sony
Eliminate
Workforce from non-core business
Products that customers don’t care
about
Reduce
Focus from Non-core businesses
Operating cost of television
business
Raise
Strengthen core businesses-digital
imaging by launching high end
professional cameras & also range
of products which supports 4K high
definition for high-end consumers
etc, game , mobile
Business in emerging markets
Optimize resources
Transform electronic business
Value engineering in existing
products like PSP’s etc
Create
Turn around the television business
New businesses and accelerate
innovation
Non- android devices