Price The policy that Sony used is premium pricing policy because of their highly innovative technology background and unique features. Sony uses price skimming for latest product where the price of the product is high as gaming fans had high expectations toward the product. Sony are low in sales due to premium pricing policy. Whenever competitors release their latest products, consumers tend to choose other substitutes such as Nintendo and Microsoft Xbox which leads to lowering the price of Playstation. To attract more customers, Sony has lower the price of hardware.
They should specialize in the segment in which they have the most expertise and that would be in line with Sony’s core competencies. By wanting to be the best in everything, it slowed down innovation, which was a pillar for the company. For this reason, they should intensively invest in R&D in those specialized fields so that innovation would have some better results afterwards. I believe they also should abandon the segments that are not profitable anymore in their portfolio. As a result, Sony could once again become a leading and specialized company in one or two specific fields and it would gain some competitive advantage within these
Fortunately, this company can rectify the problems that their competitions have encountered and identify how to pacify their shortcomings prior to launch within the United States. Therefore, Virgin Mobile needs to identify their internal strengths and weaknesses as well as their external opportunities and threats through a SWOT analysis. • Strengths: Their established mobile phone platform in other countries offers an insight on what to avoid and pursue in certain target markets. In addition, their mobile virtual network operator (MVNO) directly attributes to their ability to cut total costs of their offer wings. The abundance of pricing options is also a strength in a sense that it offers different avenues the company can embark upon.
External Business Environmental Factors that Affected Sony Sony Corporation is a company that manufactures electronic products that is headquartered in Japan (Sony Corporation Headquarters). Its innovative products such as Walkman portable music player, PlayStation, and Trinitron TV used to win customers’ heart. However, as time goes by Sony started to lose its position in the market due to its external environments factors of its place of operation. Hence this paper will discuss the different factors that had led to Sony’s poor performance that was discussed on the case study that was given to class. Microenvironmental Factors that Affected Sony The first question on the case study was regarding the different factors that had affected Sony’s
Sony’s mission statement is "to be a company that inspires and fulfills your curiosity." Sony also mentions that its passion for technology, content and services motivates the company to deliver groundbreaking excitement in the field of technology and entertainment. In 1946, Tokyo Tsushin Kogyo K.K started a small company with approximately 200,000 yen & 20 employees. The founder of sony which is Masura Ibuka said the purpose of establishing the company was to “ establish an ideal factory that stresses a spirit of freedom and open mindedness that will, through technology, contribute to Japanese culture. “ As of right now Sony’s top five competitors are, Nintendo of America, Denon, Canon, Apple Inc. & Microsoft.
Samsung implements the strategy of “ Red Ocean;” which shows that a firm gains competitive advantage by venture into the current market and constructing on the weaknesses of other competitors in the field of similar products. Thus, Samsung“floods the market with many products” which are made by other companies within short duration of time ( Travos,2002). It seems that Samsung made these new products through developing many of manufacturing products of its Smartphones. However, such attitude is considered to be as a massive cost advantage over other firms that make such product. Samsung has improved its “competition position internationally through developing its present competitive strategies” , through depending on the other manufacturers`
This shows that the company want to increase their sales by using the original marketing strategy (Ansoff, 1957). To attract more customers to purchase their products, the company needs to do more on advertising and promotions. Toys industry could sell the products that are not selling well in lower price to reduce wastage and it is easier to attract existing customers due to lower price (Chris Joseph, n.d.). Another ways to attract customer is the company could do a minor repacking on the existing products, so that the customer can feel something new to the products. Invite a famous celebrities to promote the products is also one of the ways that could increase sales.
Beside the analysis of one hundred most famous and biggest brands in the world prepared by Matt Haig in his book (Haig, 2009), I found that, the common trait of successful strategy for each of the enterprise was innovation, with a well structured research, but also source of innovation. In china Foreign direct investment, moving toward the resource seeking strategies and geo-economic, with the help of efficient search and market strategy, (Rashad & Yan, 2011). The Business week and Wall Street Journal performed a study on Fusions in U.S. (Management Strategic, 2010); they concluded that over half of fusions have negative effects for their stakeholders. They found that, around about 20 percent of fusions and acquisitions are successful and 60 percent have no satisfactory results and rests of it are just failures. This survey shows that, most of internationally sourcing activities are taken due to the reduction of labor cost; this option chosen by 45 percent of enterprises due to this reason, 9 percent is for tax and other financial incentives.
Skimming strategy with this strategy, Samsung brings a new product in the market, for e.g.S7 edge, initially it uses skimming price for the product, where it tries to get high value in the start before competitors catch the product. Once the product is outdated or same product is released in the market, price immediately drops. Additionally, Samsung also uses competitive pricing for the product other than smartphone, for e.g. T.V., refrigerator and other home appliances. CUSTOMER
Gain new customers by providing a range of products along with up to date technology to satisfy the existing customer base and attract new customers 6. Manufacturing low cost phones with latest technologies to challenge the existing leaders in the market and regain its lost ground. 7. To achieve maxmu levels of cusomter satisfaction through best products and service to win the customers' faith and trust and gain their loyalty in the longer run. Nokia controls 85% of the world’s Windows phone market.