Sony

703 Words2 Pages

Competitive Analysis

Sony

Financial Status and History

Revenue growth same as industry average

Likelihood of Entry or Retaliation

The first digital cameras for consumer use were the Apple QuickTake 100 (February 17th, 1994) and the Kodak DC40 (March 28th, 1995). Sony entered the imaging market with their first digital camera, the CyberShot Digital Still Camera in 1996.
In April of 2001, Kodak announced its first digital photo printer.
In August of 2001, Sony announced its first digital photo printer (was smaller and more lightweight than Kodak’s).

Sony is in a different industry than Kodak. Sony belongs to the Audio/Video Equipment Industry where Eastman Kodak is in the Photography Industry. Sony, however does manufacture photographical tools. Based on the two companies’ history, Kodak will likely continue to have a larger selection of electronic photography products, but Sony will continue to develop similar products, often “improved” versions of Kodak’s original products.

http://inventors.about.com/library/inventors/bldigitalcamera.htm by Mary Bellis http://www.dpreview.com/news/0108/01082107sonydppmp1.asp http://www.dpreview.com/news/0104/01042301kodakcamerasys.asp

Management Profile
Nobuyuki Idei - Chairman and Group Chief Executive Officer
Strong background in international marketing
Degree in Politics and Economics
Leading Sony into the digital age and developing Sony’s brand image
Kunitake Ando – Presient
Engineered Sony’s re-entry into the personal computer market (VAIO)
University of Tokyo School of Economics
Worked for Sony’s A/V Products and Established Sony Prudential Live Insurance
Howard Stringer – Chariman and CEO of Sony Corporation of America
Oversees Sony Pictures Entertainment (parent of Columbia Picutres), Sony Pictures TV, Sony Pictures Digital and Sony Electronics, Inc.
Worked for 30 years as a journalist, producer and executive at CBS
President of CBS
Works in entertainment http://www.sony.com/SCA/senior_mgmnt.shtml Strategic Capabilities Assesment

Scenario Analysis

Components of Competitive Intelligence
Future Objectives and Current Strategy
“Transformation 60 Program”
Undergoing Structural Reform
Cutting fixed costs by reducing 9000 jobs
Reducing production/distribution/service points by 10%
Reducing the number of suppliers and building strategic partnerships
Reducing the number of parts
Rationalizing non-production costs
Continue to strengthen Electronics Convergence Strategy
Converge technology and resources in home and mobile electronics---customers can use them interchangeably
Invest in semiconductors and key devices to differentiation and added value
CMOS Image Sensor and CCDs to achieve higher resolution/image quality
**really focus on converging technology and resources and focus on adding value and differentiation
Strengthen Demand and Supply Chain management

http://www.sony.net/SonyInfo/IR/info/presen/mr_keiho/20040519/qfhh7c000000c5t2-att/sony2004strategy.pdf

Sony is investing $60B in 2005 and 2006 to build new production wings that will focus on semiconductors that enhance imaging.

Sony and Samsung have entered a cross-licensing agreement that will allow mutual usage of the companies’ patent portfolios. http://www.sony.net/SonyInfo/News/Press/200412/04-1214E/ Sony plans to consolidate various business segments to accelerate and market the development of next generation devices and entertainment.

Assumptions
Based on Sony’s current and future strategies, Sony assumes customers will perceive added value when A.

More about Sony

Open Document