Sony

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Competitive Analysis Sony Financial Status and History Revenue growth same as industry average Likelihood of Entry or Retaliation The first digital cameras for consumer use were the Apple QuickTake 100 (February 17th, 1994) and the Kodak DC40 (March 28th, 1995). Sony entered the imaging market with their first digital camera, the CyberShot Digital Still Camera in 1996. In April of 2001, Kodak announced its first digital photo printer. In August of 2001, Sony announced its first digital photo printer (was smaller and more lightweight than Kodak’s). Sony is in a different industry than Kodak. Sony belongs to the Audio/Video Equipment Industry where Eastman Kodak is in the Photography Industry. Sony, however does manufacture photographical tools. Based on the two companies’ history, Kodak will likely continue to have a larger selection of electronic photography products, but Sony will continue to develop similar products, often “improved” versions of Kodak’s original products. http://inventors.about.com/library/inventors/bldigitalcamera.htm by Mary Bellis http://www.dpreview.com/news/0108/01082107sonydppmp1.asp http://www.dpreview.com/news/0104/01042301kodakcamerasys.asp Management Profile Nobuyuki Idei - Chairman and Group Chief Executive Officer Strong background in international marketing Degree in Politics and Economics Leading Sony into the digital age and developing Sony’s brand image Kunitake Ando – Presient Engineered Sony’s re-entry into the personal computer market (VAIO) University of Tokyo School of Economics Worked for Sony’s A/V Products and Established Sony Prudential Live Insurance Howard Stringer – Chariman and CEO of Sony Corporation of America Oversees Sony Pictures Entertainment (parent of Columbia Picutres), Sony Pictures TV, Sony Pictures Digital and Sony Electronics, Inc. Worked for 30 years as a journalist, producer and executive at CBS President of CBS Works in entertainment http://www.sony.com/SCA/senior_mgmnt.shtml Strategic Capabilities Assesment Scenario Analysis Components of Competitive Intelligence Future Objectives and Current Strategy “Transformation 60 Program” Undergoing Structural Reform Cutting fixed costs by reducing 9000 jobs Reducing production/distribution/service points by 10% Reducing the number of suppliers and building strategic partnerships Reducing the number of parts Rationalizing non-production costs Continue to strengthen Electronics Convergence Strategy Converge technology and resources in home and mobile electronics---customers can use them interchangeably Invest in semiconductors and key devices to differentiation and added value CMOS Image Sensor and CCDs to achieve higher resolution/image quality **really focus on converging technology and resources and focus on adding value and differentiation Strengthen Demand and Supply Chain management http://www.sony.net/SonyInfo/IR/info/presen/mr_keiho/20040519/qfhh7c000000c5t2-att/sony2004strategy.pdf Sony is investing $60B in 2005 and 2006 to build new production wings that will focus on semiconductors that enhance imaging. Sony and Samsung have entered a cross-licensing agreement that will allow mutual usage of the companies’ patent portfolios. http://www.sony.net/SonyInfo/News/Press/200412/04-1214E/ Sony plans to consolidate various business segments to accelerate and market the development of next generation devices and entertainment. Assumptions Based on Sony’s current and future strategies, Sony assumes customers will perceive added value when A.

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