Sony’s failure to have effective operational, tactical and strategic plans has caused a decline in sales number and a lack of innovation. “Sony has lost a lot of brand value to companies like Samsung because they are just not innovative” said Ben Collett head of Asian equities at Sunrise Brokers, in Hong Kong. This clearly shows Sony’s management failed to look into the future and create a competitive advantage for its products. The once tech giants have failed to understand that planning is a never ending function due to the dynamic business environment and strategies have to be constantly reviewed and improved to ensure long term survival of a
According to Scott Smith, in the mid-1980s, the Coca-Cola Company made a decision to introduce a new product into their beverage line. They conducted a research and the showed that taste was the most important cause of the product decline in the market. So Coca-Cola decided to introduce a new product to the market that was sweeter than the original Coke drink. Almost 200,000 blind product taste tests were conducted in the United States, and more than one-half of the participants favored New Coke over both the original formula and Pepsi (Smith, 2013). Even though people favored the “New Coke”, product, they still didn’t want the company to completely discontinue the original Coke.
Business, Government and Society Section: IBF1 Group-D Garbis Chirinian Caroline Haine Navya Kakulamarri Olli Kaukonen David Soulama Javier de Quinto SUMMARY: In the 1970s, CEO of Pfizer, Edmund Pratt, observed that his company was losing a major market share in developing countries “because our intellectual property rights were not being respected in these countries” . Pfizer is a multinational pharmaceutical company that has operations in developing countries before many other US pharmaceutical companies. Some developing countried did not have any economic incentive to have patent laws. Some other countries had laws whoch werent properly in place. If there wasn 't a reasonable price for the drugs, Pfizer had to tie up with a local company to produce drugs.
As we all know, the technological advancements in recent history is phenomenal. There has been incredibly rapid improvements to the point where 20th Century technology has become completely obsolete in mere decades. This poses the most probable cause for the downfall of Kodak, which was not able to compensate and adapt fast enough. It seemed as though Kodak did not have much sense of urgency so managers didn’t feel the need to make changes when it was necessary. It paved the way for the
As a result, they have increased the number of assembly services for customers to visit. Another problem with cultural differences IKEA has encountered was in the US. They did not study their target market in detail, and therefore did not know that the average sizes of furnishings in the US were bigger than the ones in Europe. Beds, cupboards, even curtains did not fit the houses. The former head of IKEA, Carstedt claimed: “American customers were buying vases to drink because the glasses were too
The policy of the company to focus on a single distribution channel has changed. It is now focussed on having various distribution channels and has a huge network of stores and outlets worldwide (Adidas Official). Due to an extensive marketing infrastructure and advertising, Adidas has been able to undergo market penetration which helps them to draw more profits. According to Manzenreiter (2004:303), Adidas kept doing the advertisement campaigns with popular sports celebrities after the 2002 football World Cup like David Beckham, Hidetoshi Nakata, etc in order to gain more and more market share in the markets like Japan. Adidas also formed one of the pillars in 2006 football World Cup in
Again, Sony has already raised the capital required to innovate. Those entering Sony’s industries need a complex set of technological skills. Sony’s team of experts has acquired this knowledge through years of production and innovation. Clearly, patent protection and government regulation keeps the threat of new entrants low. If there threat of entry were high, Sony’s market share would drop significantly, especially because the company does not hold the customer loyalty needed to ensure consumers continue to buy Sony products in the face of intense rivalry.
Apple had to take risk in every single new product that they introduced to the market as no one knew how such an excellent product would be received by the market or what its function really is. And by following the risky strategy Apple has adopted, they weren’t always successful by their new products. Apple faced a lot of failure products like the Macintosh TV and Performa, but it’s how you get back from these failures with another revolutionary product and that’s what Apple has been doing. Apple’s Generic Strategy Another important aspect of Apple’s success in the Consumer Electronics industry is their extensive differentiation. It focused on key elements that differentiates Apple and their products from competitors and that made them stand out in the electronics market.
Under TRIPS agreement, protection was provided to patented drugs which were discovered after 1995. There have been many patent wars between the low cost generics producing Indian pharma companies and the MNC’s. Indian government has provided substantial support to the local pharma companies helping them gain a stronghold in India and also enter the business globally. Recently, the supreme court of India had rejected the appeal of the Swiss pharma major, Novartis. The court had classified the drug as an incremental innovation done to extend the life of the patent.
The company is strongly connected to fashion and youth trends. This has made a big competitor of Red Bull towards companies such as PepsiCo and Coca Cola. The competition is so strong that Red Bull is forced to spend huge amounts of money on advertising campaigns. 13.3 Opportunities 13.3.1 Diversification of its distribution network Red Bell is recently using trade in order to increase sales. Vending machines work effectively as advertising tools and sales tools, due to the constant exposure to consumers.