Sony Case Study
1. Reasons for suffering wearout
1) The internal culture and core rigidities of Sony
In their own success, Sony created a problem for themselves – resisting changing, and failing to recognize that changes were happening rapidly.
All core competencies have the potential to become core rigidities (死板). Core rigidities inhibit Sony’s ability to access and develop new capabilities, and it prevents Sony from responding appropriately to changes, in particular the rapid changes in technology, thus losing their competitiveness.
The culture for Sony appears to be product focused rather than market focused. The Co. is resistant to change and has been too comfortable with past success, resulting in complacency(自满). Sony has benefited from large margins on its consumer electronic products; however, these are increasingly being threatened.
Strategic myopia and inflexibility on the part of the firm’s manager strangle (扼住) the firm’s ability to grow and adapt to competitive threats through innovation.
For example, customers’ buying motives have changed and Sony did not respond that Sony has no equivalent of Apple IPod, and the company failed to capitalize on the demand for flat screen televisions
2) Competition
Sony is losing market share with the rest of competitors (Samsung, Matsushita and LG) are maintaining and growth the market share.
However, Sony must know where the real threat is coming from – Samsung, Apple and Microsoft. Sony has not equivalent of the Apple iPod, which is having a major impact on the personal stereo market. Samsung is ready for the presentation of its new 3D TV, however, Sony is lagging behind its competitors in launching new products and technologies.
3) Positioning
Sony used to be a powerful force in consumer electronics. However, business diversification into movies, music and financial services finds it difficult to move with the times.
The purpose of diversifying into other business is to complement the current core
1) The internal culture and core rigidities of Sony
In their own success, Sony created a problem for themselves – resisting changing, and failing to recognize that changes were happening rapidly.
All core competencies have the potential to become core rigidities (死板). Core rigidities inhibit Sony’s ability to access and develop new capabilities, and it prevents Sony from responding appropriately to changes, in particular the rapid changes in technology, thus losing their competitiveness.
The culture for Sony appears to be product focused rather than market focused. The Co. is resistant to change and has been too comfortable with past success, resulting in complacency(自满). Sony has benefited from large margins on its consumer electronic products; however, these are increasingly being threatened.
Strategic myopia and inflexibility on the part of the firm’s manager strangle (扼住) the firm’s ability to grow and adapt to competitive threats through innovation.
For example, customers’ buying motives have changed and Sony did not respond that Sony has no equivalent of Apple IPod, and the company failed to capitalize on the demand for flat screen televisions
2) Competition
Sony is losing market share with the rest of competitors (Samsung, Matsushita and LG) are maintaining and growth the market share.
However, Sony must know where the real threat is coming from – Samsung, Apple and Microsoft. Sony has not equivalent of the Apple iPod, which is having a major impact on the personal stereo market. Samsung is ready for the presentation of its new 3D TV, however, Sony is lagging behind its competitors in launching new products and technologies.
3) Positioning
Sony used to be a powerful force in consumer electronics. However, business diversification into movies, music and financial services finds it difficult to move with the times.
The purpose of diversifying into other business is to complement the current core