Sony Case Study
Brian T Castagna
Wilmington University
BBM 402
Sony Case Study
1. Sony had been so successful in the past with the Walkman, Playstation, and other electronics because they were innovative and new for their time. They helped reshape the music and gaming industry as we know it today. Without such developments, technology might not be where it is today. Sony’s competition was also vastly different. At the time of the Walkman, there were no other major competitors and the purchase of CBS Records only furthered their stronghold on the industry. Sony’s product quality was also superior, as they were known world-wide for producing electronics of the highest design.
2. Mr. Idei stated that the integration of the divisions across the global market proved to be quite challenging, but yielded excellent lessons for future mergers. He said that he would have preferred a “soft acquisition” rather than a hard one, and in saying this, I believe he means that in order to successfully integrate new divisions in new markets, a strategic alliance would suit the company better than a straight merger. This way, the company will be able to assess the major differences in the different markets, while not sacrificing production. Mr. Idei noted that there are advantages and disadvantages of this strategy, but I believe the strategic alliance approach works best in the long run as you’ll have two strong companies, who have a strong knowledge on their current markets, working together to achieve the same goals.
3. Apple succeeded in the digital portable music industry because it took Sony’s principle of innovation and used it to its advantage. iTunes sparked a completely unique and convenient way for consumers to obtain music without leaving their home, and with the iPod the only accessible device to it, users were forced to buy an iPod to reap the benefits. Sony seemed to be fixated on the anti-piracy aspect of digital music and their fight stalled any attempts to gain
Wilmington University
BBM 402
Sony Case Study
1. Sony had been so successful in the past with the Walkman, Playstation, and other electronics because they were innovative and new for their time. They helped reshape the music and gaming industry as we know it today. Without such developments, technology might not be where it is today. Sony’s competition was also vastly different. At the time of the Walkman, there were no other major competitors and the purchase of CBS Records only furthered their stronghold on the industry. Sony’s product quality was also superior, as they were known world-wide for producing electronics of the highest design.
2. Mr. Idei stated that the integration of the divisions across the global market proved to be quite challenging, but yielded excellent lessons for future mergers. He said that he would have preferred a “soft acquisition” rather than a hard one, and in saying this, I believe he means that in order to successfully integrate new divisions in new markets, a strategic alliance would suit the company better than a straight merger. This way, the company will be able to assess the major differences in the different markets, while not sacrificing production. Mr. Idei noted that there are advantages and disadvantages of this strategy, but I believe the strategic alliance approach works best in the long run as you’ll have two strong companies, who have a strong knowledge on their current markets, working together to achieve the same goals.
3. Apple succeeded in the digital portable music industry because it took Sony’s principle of innovation and used it to its advantage. iTunes sparked a completely unique and convenient way for consumers to obtain music without leaving their home, and with the iPod the only accessible device to it, users were forced to buy an iPod to reap the benefits. Sony seemed to be fixated on the anti-piracy aspect of digital music and their fight stalled any attempts to gain