Through a comprehensive research on Sony’s industry as a whole, according to Wall Street Journal, “TVs are the core of the core for Sony (Dvorak P., August 29, 2005, Sony Plans Ad Blitz to Boost Ailing TV Unit)” because of the spirit of innovation, state of the art technology and superior quality imbibed in its corporate culture. Sony’s primary problem that was observed during the research process was its high pricing strategies especially in its ailing TV industry which has resulted in a decline of its sales growth and revenue though. A major drawback for the high prices of Sony TVs is due to the rise of the Yen in which consumers bear the brunt by having to pay higher prices for. This is done as such because Sony needs to recover its lost foreign exchanges due to international trade between foreign currencies and that of the Japanese Yen. The results of the research show that because of its high pricing strategy, fewer consumers are willing to purchase a Sony TV. This concludes that price is certainly an influential factor before considering purchase though consumers appreciate the quality and brand name of Sony
Literature review
Sony as a global leader in electronics, faces stiff and intense competition from its numerous and diverse competitors such as Matsushita Electric Industrial Co. and Samsung Electronics Co. According to Wall Street Journal, Sony’s Chief Financial Officer, Nobuyuki Oneda said, "The competition is considerably tougher than we thought, referring to the TV-set industry. Prices are coming down at a faster rate than we had expected, particularly in the U.S. (Kane Y., October 26, 2006, Sony Warns of Pricing Pressures for TVs as Profit Plunges 94%)" Sony has begun to realize the extent to which price deter...
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...ponse was that Sony TV warranty is effectual because its TVs are planned in such a way that the product lasts longer than the warranty which gives it a lower failure rate. However in the event of a failure past the warranty, a fee is charged for repairs.
How do you think Sony is doing financially? How can they improve their TV sales?
The rationale for this question was to determine its financial performance in the market amid all its competitors and also to establish the enhancement of its TV products. The most important response was that Sony is doing financially well given the global macroeconomic picture. For Sony to improve its sales, it should keep on developing and introducing more technologically innovative and unique products for instance the Bravia series and maintain the path of enhancing structural and operational efficiency to optimize production costs.
...s are doing well and over the many years have gone up. The company has not lawsuits currently pending which is good. The company as a whole seems to be growing even when the market is down.
The financial data for the company is convincingly good-to-great. Its revenues has been rising constantly since 1998 as can be seen on the exhibit. Net income for 2002 was the highest in 5 years ? $5,710 million, rising by 58% since 2001. Its total assets have increased by 13.6%.
Among the film companies Kodak had the highest market share with 70%, far beyond companies like Fuji (11 %) and Polaroid (4 %) as well as private label (10 %) and other (5 %). (Exhibit "Market Share") However, Fuji´s global sales of $10 billion made it half Kodak´s size. Even though Kodak was the dominating brand, it faced the problem of a 6% decline in market share within the last five years and a 3% drop in sales in the last year. At the same time, Fuji´s and Polaroid´s sales grew more than 15% in the past year. This is closely linked to the four price tiers in the film market, namely, Superpremium brands, Premium brands, Economy brands and price brands. With prices ranging from $4,27 to $4.69 Fuji and Kodak are positioning themselves in the high price segment through their superpremi...
Since BPS couldn't expect a competing product like 1270, both the company and the distributor were shocked and stirred. Considering Barco's scale in the market, even though BPS was in the position of industry leader, it couldn't defend itself from the attack of the giant like Sony. At this point, to keep the market position and share BPS should take an immediate action against Sony's market conquering movement with the high-quality but low-priced projector 1270. At this time, the managers of Barco were considering basically two options: pricing option and product development option, but both options had some defects.
Two major competitors in the global consumer electronics industry, Philips of the Netherlands and Matsushita of Japan, both have extensive histories that can be traced back more than a century. They have each followed different strategies and have had significant capabilities and downfalls along the way. In general, Philips built its tenured success on a portfolio of responsive national organizations. On the other hand, Matsushita based its global strategy on a centralized and efficient operation through Japan. As they developed and reorganized their international strategies, each company was forced to undertake its strategic posture and restructuring as its competition position fell.
Samsung’s cost advantage is clearly visible from the comparison of costs (and their elements) that were borne by the company and its competitors in 2003 (Tab. 3): Samsung’s overall cost was 24 per cent lower than the weighted average cost of the other four producers; two most significant elements of the cost structure, i.e. raw materials and labour, were 36 and 27 per cent lower respectively. When expressed by means of a relation of average selling price to costs (“productivity” of cost elements), the differences are even more visible (comp. Tab. 4 ): overall superiority of Samsung over its competitors exceeded 51 per cent!
Stringer aimed to unite cutting-edge technology with entertainment content while reviving Sony’s electronic business. To combat the price drops of rivals Stringer streamlined Sony, unveiling a sweeping restructuring plan that cut 10,000 jobs, shed a number of unprofitable divisions and products and attempted to centralize decision-making (Palmer, 2006).
The result of all this is that Sony had a significant advantage over their competition, but let it slip away by not recognizing consumer needs and striving to meet them. Competing products that are not compatible with each other must accurately determine the most important element of success, which is having the majority of the market share and being the product of choice since they can not co-exist; in this case it was the stand-alone VCR unit. Sony failed to recognize that, and as VHS systems became the unit of choice, taking the full market share and consumers away from Betamax.
Firstly, Philips’ main capability is the decentralised structure with strong local subsdiaries, which is the National Organisations (NOs). Philips established NO after the war to replace the destroyed industrial plant in Netherlands. During this period, electronics was seen as luxury good and trade barrier between nations was high. The decentralised structure supports Philips in competing effectively with local competitors and enables them to adapt with the diverse local market. Each NO had the their strength and resources to sense and perform adaptive marketing as well as develop their product to respond the local differences. It is reflected in its television product. The first color TV is created in Canada, while the first stereo TV is created in Australia and the teletext TV is created in UK (Bartlett, C. A., 2001). The strong independence of these local subsidiaries also reinforced by the communication barriers during that period (Bartlett, C. A., Ghoshal, S., & Birkinshaw, J. M., 1995). The decentralised structure gives high degree of independence in each international unit, including decision-making autonomy (Daft, R. L., 2009). In the case of Philips, NOs as local subsidiaries had more power over the Product Departements (PD), as Philips gave NOs financial autonomy as well as liberty to set their own target. Thus, the NOs ability of autonomous marketing and product development function had become Philips m...
N.V. Philips (Netherlands) and Matsushita Electric (Japan) are among the largest consumer electronics companies in the world. Their success was based on two contrasting strategies – diversification of worldwide portfolio and local responsiveness for Philips, and high centralization and mass production for Matsushita.
The OLED Smart TV satisfies customers who are looking for a television that provides a high-end, dynamic viewing experience. This product particularly appeals to early adapters of innovative and creative electronics, due to the fact that the OLED Smart TV is attributed with several ground-breaking features. Am...
LVMH founds itself in a stable financial situation. Being positioned as the market leader they have better financial results than the rest of the competitors. Although the sales results for 2004 were under the industry’s average the overall performance over the last 5 years was 3% higher then the industry. It is important to note that the major owner of the company’s capital is present CEO Bernard Arnault with 47.52% of the control of the company with 64% of voting rights. This may have an Important impact in the overall performance and operating decision taken in the company.
Samsung Electronics Company (SEC) began doing business in 1969 as a low-cost manufacturer of black and white televisions. In 1970, “Samsung acquired a semiconductor business” which would be a milestone that initiated the future for SEC. Entering the semiconductor industry would also be the beginning of the turnaround phase for SEC. In 1980, SEC showed the market its ability to mass produce. SEC became a major supplier of commodity products (televisions, microwave ovens and VCRs) in massive quantities to well known original equipment manufacturers (OEMs). For this reason, Samsung was able to easily transition into a major player in the electronic products and home appliances market (Quelch & Harrington, 2008).
Panasonic Case Study (Graphics Not Included) Panasonic operates under the umbrella of the Matsushita Electric Industrial Co.
Brand offers superior quality of the service to the customer’s expectation and satisfaction. Furthermore, people are much attached to the branded products, as majority of the people purchase the branded products with the belief that brands show their status and life style in the society. And also because they believe that they are purchasing quality when purchasing branded product. As duration of stay creates impact of brand on consumer behaviour, so verification of brand image, brand loyalty and personality should be considered as the significant factors in this regard. It can also be said that there is need to improve the product of a particular brand so that the impact of brand on consumer behaviour is more effective in comparison to the existing scenario. The study also reflects that the product features are very essential for consumers. Advertising plays a very important role in achieving growth for any product or brand. The right media for advertising products and services should be chosen to gain customer attention.