Sony & business strategy
#1
Sony & business strategy
Hi,
Just doing some market research and it seems Sony have really got it wrong over the last years. They have fallen short on MP3 type players as in Apple now have market share; what happened to the Sony Walkman dominance?
Also, their new player is not colour screen so they are still not learning. Fair enough they seem to produce the better quality item but markets have changed- am I right in thinking consumers prefer, dare I say, "design" first?
Sonys' attitude of quality first, design second does not seem fit for todays environment- they missed the band wagon with TeleVision sets- they stuck to CRTs while the market opted for the lower quality, better design Plasmas and LCD.
And now I find they are sticking to "Blu-ray" disks whatever they are, where as many rival firms are going for HD DVD.
Finally the only thing that seems to keep them truely afloat is the Playstation sector and they have allowed Microsoft to gain the crucial first mover advantage. However personally I think this maybe a classic case of game theory, and they may have falsely lead MS- who produced the Xbox 360 earlier then they wanted, allowing Sony to produce a better machince making the Xbox 360 technologicaly redundant.
whats do guys think? I am wrong? Dont even get me started on the mini-disk or the hash they made of the music copy rights.
Just doing some market research and it seems Sony have really got it wrong over the last years. They have fallen short on MP3 type players as in Apple now have market share; what happened to the Sony Walkman dominance?
Also, their new player is not colour screen so they are still not learning. Fair enough they seem to produce the better quality item but markets have changed- am I right in thinking consumers prefer, dare I say, "design" first?
Sonys' attitude of quality first, design second does not seem fit for todays environment- they missed the band wagon with TeleVision sets- they stuck to CRTs while the market opted for the lower quality, better design Plasmas and LCD.
And now I find they are sticking to "Blu-ray" disks whatever they are, where as many rival firms are going for HD DVD.
Finally the only thing that seems to keep them truely afloat is the Playstation sector and they have allowed Microsoft to gain the crucial first mover advantage. However personally I think this maybe a classic case of game theory, and they may have falsely lead MS- who produced the Xbox 360 earlier then they wanted, allowing Sony to produce a better machince making the Xbox 360 technologicaly redundant.
whats do guys think? I am wrong? Dont even get me started on the mini-disk or the hash they made of the music copy rights.
#3
Exactly thats going back to an era of monopolistic competition, they had the power to pick and choose. Now the market is highly olygopolisitc (SPG!) and I think the consumers now have market power hence Sony can not carry on their like it or leave strategy.
All IMHO of course. I need to find Sonys share price overthe last thirty years and will let you guys have a gander at the graph if anyone is interested. Right back to work.
All IMHO of course. I need to find Sonys share price overthe last thirty years and will let you guys have a gander at the graph if anyone is interested. Right back to work.
#4
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All of this is reflected in what is happening to their factories in Pencoed & Bridgend. Bridgend is now winding down ready to close next year and Pencoed is running a small staff. It happens to the best of people. (Apologies to anyone if I'm wrong.)
#5
Originally Posted by kammy
Dont even get me started on the mini-disk or the hash they made of the music copy rights.
#6
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From what I have read before, Sony don't actually have that good a reputation back in their home country.
Over the years, I have stuck with Sony for VHS & DVD players and TVs. The TV I have to say I can't fault 32" WEGA affair and it is really good. The players on the other hand have been perfect for about 12 months and usuallyjust outside warranty they play up. 2 VHS players to an early grave and DVD player no2 is starting to get very stroppy and picky about what it will and won't play.
Lost alot of faith in them recently, so much so I've just bought a sony Handycam
Over the years, I have stuck with Sony for VHS & DVD players and TVs. The TV I have to say I can't fault 32" WEGA affair and it is really good. The players on the other hand have been perfect for about 12 months and usuallyjust outside warranty they play up. 2 VHS players to an early grave and DVD player no2 is starting to get very stroppy and picky about what it will and won't play.
Lost alot of faith in them recently, so much so I've just bought a sony Handycam
#7
Originally Posted by Reality
Getting involved in the "Music production" business is where they went wrong imho. Since then they have basically had a conflict of interest in giving the consumer what they want v protecting their copyright !
The content side of their business, fearing canibalisation, vetoed their free-format MP3 player activities for example. This allowed Apple to steal quite a march on them. Sometimes vertical integration is quite simply a bad idea!
Suresh
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#8
True in a sense, but you have to remember the Music production side of Sony is still very profitable where as competition in electricals from China is driving down prices thus profits.
#10
Hello
Sony have lost their way a little bit. They are trying to get it back with things like the PSP and the new (although I don't like it) Walkman.
I was shocked to see how much of their revenue comes from the PlayStation brand.
Steve
Sony have lost their way a little bit. They are trying to get it back with things like the PSP and the new (although I don't like it) Walkman.
I was shocked to see how much of their revenue comes from the PlayStation brand.
Steve
#11
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Wasn't there talk a while ago of Sony releasing their own MP3 player that would only play tracks bought from the Sony website? Err very daft idea, lets give teh market to Apple inparticular (I have an Ipod and love it, its never let me down). I have a Sony erricson phone, and its just bust for the second time in 13 months so I've just switched back to Nokia.
Sony have gone down hill from the brand they used to be, although their laptops and monitors take some beating, anyone rememeber the Trintron ones?
They do need to get their finger out and get back to how they were considered 20 years ago.
Sony buying Thorn EMI (now Sony BMG) was a daft idea, when they make stuff like MP3 players there was always going to be a conflict of interest there.
Sony have gone down hill from the brand they used to be, although their laptops and monitors take some beating, anyone rememeber the Trintron ones?
They do need to get their finger out and get back to how they were considered 20 years ago.
Sony buying Thorn EMI (now Sony BMG) was a daft idea, when they make stuff like MP3 players there was always going to be a conflict of interest there.
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