GoPro is one of the well-known action camera manufacturers in the United States. The policy and goals of the company make it special and attractive to consumers, who may any person passionate with sports, an active style of life, and the intentions to capture and share personal lives in the most convenient ways (GoPro par.1). There are many competitors that influence GoPro technologies, its cooperation with customers, and manufacturing details (Millward par.1).
Feature Table
Features
GoPro
Sony
Camsports
Drift Innovation
1. Low price
No
No
Yes
No
2. Quality
Yes
Yes
No
Yes
3. Waterproof
Yes
Yes
Yes
Yes
4. Ease of use
Yes
Yes
Yes
Yes
5. Image/video quality
Yes
Yes
No
Yes
6. Extreme temperature resistance
Yes
No
No
No
7. Camera protection
Yes
Yes
Yes
Yes
8. Live view
Yes
Yes
No
Yes
Benefits of Features
1. Low price
More customers are attracted
2. Quality
More customers enjoy the results of the services
3. Waterproof
More opportunities available to customers
4. Ease of use
More different customers (children, adults, and elders) can use cameras
5. Image/video quality
More satisfied customers can be observed
6. Extreme temperature resistance
Customers from different countries may use products for different purposes
7. Camera protection
Fewer returns and complaints are observed
8. Live view
Satisfaction in services is observed
Models in Marketplace
Recently, each company under the analysis has offered some new productions or the improvements to the already existing products. In this paper, the following list of products will be analyzed:
Hero 4 Camera is one of the latest achievements of GoPro (Hero4 Silver).
Action Cam’s 4K is the product of Sony (Action Cam’s 4K).
Camsports EVO HD Camera is another product for the analysis (Camsports EVO HD Camera).
Drift Ghost-S is the camera of Drift Innovation (Drift Ghost-S).
Each product has its unique features that can attract the customer. For example, Camsports cameras are attractive by their prices, and customers should not spend much money to get this product. Besides, the offered product is compact so that it does not take much place even if in a purse. Sony production attracts the attention of customers by its appearance: small, without any extra details that can make the use of the product difficult or problematic. Such characteristics are crucial for many female and male users, and the options offered by Sony are accompanied by a high quality of images and video material. Drift Innovation offers the camera that is small with such ability as a live view in the most convenient way. Finally, GoPro cameras help to capture the word from any perspective and offer high-quality images and videos in a short period. It does not matter what speed and conditions for shooting are. Any moment can be saved with GoPro cameras (GoPro par.1).
Uniqueness of Competitors
The main uniqueness of the competition that takes place between GoPro, Sony, Drift, and Camsports lies in the possibility to unite comfort, speed, and quality at once. Despite the fact that GoPro usually takes the leading position in the marketplace, Sony continues making successful attempts to create a solid competition for the company (Rose par. 1). As a rule, all cameras can be used at daytime and at nights. It is not only interesting and comfortable. The process of shooting becomes an activity that captures all people regardless their age, gender, or other differences. Each competitor sets its prices and uses its own consumer database. In brief, it is possible to provide each camera with its own word:
Sony – quality;
Camsports – low price;
Drift – innovation;
GoPro – professionalism.
Each aspect has its own customer, and people are welcome to choose.
Because of a tough competition with the Xbox, Microsoft’s brainchild, Playstation is trying desperately to attract more customers with new services, and the recent launch of the Sony PlayStation TV micro-console is an obvious proof for that.
Though the console clearly deserves to be viewed as a decent product for the target market, it is still obvious that the company’s goal was not to attract new customers, but to reclaim its position within the global market and be able to compete with Microsoft once again. The lack of concern for the quality of the product gives a lot of reasons for concern; for the company to regain its position within the global market, an introduction of a new brand of an outstandingly high quality is required.
Introduction
Despite the fact that the new product launched by Sony was supposed to become the key tool in its problem-solving strategy, the TV Micro-Console does not seem to help the current situation. This occurs not only because the new product does not suit the standards for global orientation, but also because the company is clearly using the launch and the excitement around it in order to distract the target audience from its obvious financial problems, which may fail as a marketing plan for the company.
Problem Solving and Global Orientation: The Failed Attempt
One of the most peculiar things about Sony’s marketing plan is that it can be viewed as both a success (though admittedly a dubious one) and a major failure. Though Sony’s new product is by no means a breakthrough, it cannot be called a complete marketing flop. The great irony of the situation, however, concerns the fact that Sony may have actually succeeded in their marketing plan, as long as the plan was to distract the target customers from the current problems within the organisation (Crossley, 2014).
Nevertheless, from the perspective of problem solving, the marketing plan developed by the organisation and presupposing the launch of a new product as the key strategy does nothing. The recent reviews define the product as mediocre and rather half-baked, which means that the company only managed to stress the problems that it is fighting with now.
The marketing plan developed by the company also seems to have failed at creating the premises for making the company financially stable within the realm of the global market. Competing in the global environment is not an easy task, especially when having to face such competitors as Microsoft, which has recently updated its Xbox brand to meet the new requirements of the target audience (Vincent, 2014).
The product and the marketing plan discussed above can also be viewed as a rather graphic example of a more or less successful global orientation. Indeed, much to the surprise of the critics, the product itself seems to be quite fit for the global market, with the interface that allows for the users from all over the world to understand the principles of its operation easily, and the price that can be considered affordable in most countries of the world where the company’s customers are located.
It should be noted that the introduction of the product was followed by a major issue concerning the worldwide connection (Phillips, 2014); therefore, the organisation needed to regain its status as a company providing impeccable services quickly.
The launch of the TV Micro-Console did address the problem in a very efficient manner; on the one hand, Sony has shown that it still had the potential for being in the industry, yet, on the other hand, the quality of the product clearly does not hold up to Sony’s standards (PlayStation TV: A microconsole with big ambitions, 2014).
Therefore, although the marketing plan that Sony adopted in 2014 could have worked for an organisation of a smaller scale, the lack of cohesion and the quality of the console disclosed the organisation’s actual intentions and, thus, devalued the product.
Conclusion
There is no need to stress the fact that the marketing plan developed by Sony, which is desperate for recovering from the recent financial shock, is far from being efficient. The issues discussed above have a direct link to module marketing, as they revolve around the dubious marketing strategy that Sony has chosen in order to promote its new device and retain its popularity among the target audience.
Although the new product did get the attention of the target customers for a moment, the flaws of the product made the financial situation of the company even more desperate. Sony’s case is a graphic example of a marketing plan done wrong; every single detail starting with the goal of the plan is flawed from the bottom to the top.
Focusing on the distraction strategy instead of delivering a truly impressive product was the key mistake of the organisation and the decision that led the firm to a temporary defeat. While there are still chances that, by revising the marketing plan, Sony will be able to reach its objectives, the shock that the organisation has suffered is still by far too huge to be trying to regain the company’s competitiveness any time soon.
Growth opportunities for the brand using product/market expansion grid to increase sales
For the new Sony Watch for monitoring blood pressure and sugar for diabetes in individuals, the best product/market expansion grid is diversification. When the company develops and launches a new product in a new market, it will find good opportunities that are not available in its current business. Thus, Sony Watch could be a game changer for revenue growth and profitability for the company. In this case, the company will be launching a new product in a new market of the UAE. To grow, the company will focus on conglomerate diversification strategy. It is noted that Sony Watch, which is a wearable technology for individuals with diabetes, is a vibrant product for new markets not explored before (Armstrong et al. 45).
Potential new market segments
Although the company already has existing clients, Sony Watch is meant to target new market segments to create more opportunities for growth and profitability. The wearable technology perhaps has not penetrated the market as expected. In the UAE market, Sony Watch is a product that will specifically appeal to new group of consumers who are considered to be living with diabetes. By focusing on this market segment, the company will go beyond its traditional market segments.
Although there are smart wrist technologies for diabetics, they have not gained grounds in the UAE markets. Given the number of rising middle class in the target, individuals with chronic diabetes and other lifestyle conditions is most likely to rise. This situation presents an opportunity for the company target new markets. For instance, in the UK, the wearable device has gained attention from many diabetics who initially had problems monitoring their glucose levels and blood pressure (Kirsch 1). While these products can be found in the UAE, they are not common in the mainstream target market. In fact, only well travelled, wealthy individuals possess them.
Application of the marketing mix
Sony Watch is specified as consumer product. In this regard, the company will market the Watch to mass market, just as it markets and promotes smartphones, tablets and others. Thus, the company must ensure that Sony Watch meets the needs of the new target market segment in the UAE.
Proposed Product
Sony Watch will present major benefits to potential customers. The Watch is designed to measure glucose levels and change the way in which about 20 percent of the UAE diabetics manage their conditions. It is estimated that the number is most likely to rise because of growing cases of obesity and lack of physical activities (Chaudhary 1). New cases of diabetes in the UAE will present even more opportunities for Sony Watch.
The product is worn on the arm to gauge the level of glucose in the wearers’ blood via the skin after specified period. As a result, diabetics can obtain vital real time information about their glucose levels and adopt best practices to keep the levels management or stable. Patients will therefore be able to avoid chronic challenges that arise from elevated blood sugar using Sony Watch.
Sony Watch is most likely to rely on minimal electric current to draw blood sugar via the skin. Through complicated processes based on positive and negative ions, the Watch would be able to collect glucose for analysis.
Sony Watch will be designed for convenience as the major product specification and benefit. It has been observed that several people with diabetes often fail to test their blood sugar levels due to inconvenience and pain associated with the process. While diabetics recognised that it is imperative to gauge their levels of blood sugar based on physicians’ recommendation, they usually fail to do so because of poor management of daily activities related to sustained levels.
In fact, diabetics understand that chronic complications may result in loss of kidney, heart diseases, stroke and even blindness. By portraying Sony Watch as a simple gadget that could prevent these adverse outcomes due to lack of measurement of blood glucose levels, consumers are most likely to realise these benefits and purchase it. That is, frequent measure of blood sugar levels would ensure that patients understand their conditions and take appropriate interventions to control the levels. Thus, they can avoid long-term advance outcomes.
It is expected that Sony Watch will have a chip to store all data collected regarding blood sugar and pressure for analysis and reference. In addition, it will be possible to warn diabetics when their blood sugar levels and blood pressure are too high, too low, rising steadily or dropping faster.
Proposed Price
Many analysts have associated diabetics with changes in lifestyles supported by increased earnings. That is, the disease affects mainly the middle class and other affluent people. In this regard, Sony Watch should be a premium product, but the company should also develop other models for mass markets.
It is expected that the pricing strategy would accounts for product costs, costs associated with shipment, distribution, advertisement and promotion among others. It is however recommended that the premium pricing strategy should be considered once the market research has been done in the UAE to determine the most suitable price for the local market.
It is also imperative to recognise that Sony Watch will not be retailed at prices that reflect that it is a luxury brand. This implies that the pricing strategy would tout the product as convenient for consumers rather than a luxurious brand for the few.
Price skimming would be the best approach for Sony Watch. Through this approach, Sony Watch will maximise the profit for the company by retailing at a premium price for early adopters. Later on, the price of the product will gradually drop to attract a large number of middle class consumers. The innovative technology and wearable device fad will drive sales among target consumers who will be willing to pay high prices for the gadget. Once the sales drop or a new competitor enters the UAE market, the company will gradually reduce the price, skimming every segment until all segments of the target market are exploited.
By adopting price skimming strategy to launch Sony Watch, the company is most likely to derive four main advantages. The company will learn about what its target market segment is ready to pay for the Watch. Sony Watch will also enjoy prestige status associated with the product classification and pricing strategy. In addition, if the company learns that the entry pricing is far beyond many target consumers, it will be willing to lower it gradually.
Lastly, other potential customers will be enthralled to acquire Sony Watch at relatively lower price and, therefore, the company will be able to establish goodwill in the local market. One major drawback is that Sony Watch is most likely to attract multiple competitors because of its premium pricing strategy and large profits. On this note, the company must continuously introduce advanced watch through innovation to create competitive advantage.
Overall, the pricing strategy would be guided by specific factors in the UAE market, the company’s image, brand feature such as “competitive intensity, market pioneering, brand reputation, and experience effects” (Spann, Fischer and Tellis 235).
Proposed Place
Given the premium classification of Sony Watch, the company will adopt selective distribution strategy. Through this approach, the company will be able to select specific dealers in the UAE market to resell the Watch. It will assist the company to ensure that all selected dealers comply with the strict criteria that reflect its brand and premium classification of Sony Watch. Thus, the company’s strategies will influence resellers’ strategies.
The company will use the Internet as a means of distributing its Watch to target online shoppers. At the same time, it will encourage the channel members to share distribution activities to ensure that practices are consistent. The company must coordinate the supply chain to position the brand as premium. This strategy would create premium value to support the product classification and the intended brand image, as well as justify the premium pricing strategy for Sony Watch (Parment 250). The company should be careful to ensure anchorage in the UAE market because it is significant for encouraging resellers and creating competitive edge. When the company identifies its distribution places, which will be high-end locations in the UAE market, it will be able to design appropriate strategies for distribution.
It is imperative for the company to recognise that a premium Sony Watch may not appeal to the local UAE market because of loose relations. On this note, the company must create competitive advantage through its supply chain, which will ensure strong brand recognition, identification and appeal to consumers. According to Parment, “consumer is likely to be attracted by the image of the premium brand than by the local dealer and thus creating a consistent brand experience is decisive for premium brands whose content to a great extent is global and goes beyond the influence of local dealers and cultures” (250).
The company should adopt a pull strategy to create demands and encourage consumers to buy premium Sony Watch. The pull strategy would ensure that the company appeals to the end user of its product. In this regard, the distribution strategy must create a strong, visible brand for the successful strategy. The company will adopt various ways in its pull strategy to promote Sony Watch. First, the advertisement would involve traditional media and the Internet to promote Sony Watch. Second, the company will focus on developing customer relationships to ensure that customers will always come back and create awareness about Sony Watch to meet specific needs of diabetics. Finally, sales promotion would drive the pull strategy.
Through the pull strategy, the company will create new demands for Sony Watch. The increased demands will ensure that distributors are active to serve the target market segment. For example, the company will adopt strategies used by premium smartphone firms to launch their products. The Internet and social media would also be instrumental in enhancing the pull strategy of the company.
Proposed Promotion
A mix of promotional elements would be used for Sony Watch. On this note, the company would only focus on the most popular promotional strategies. Sales promotion would involve the use of incentives such as gifts to encourage the customer to purchase Sony Watch. For instance, customers will get gift voucher of specific amount to purchase any other products of their choice after purchasing Sony Watch. Through sales promotion, the company would realise immediate, short effects on sales volumes. It will allow the company to clear available stock. The sales promotion methods used such as stock clearance would motivate the distribution channels and consumers to purchase Sony Watch. At the same time, they would give the company a competitive edge against competitors.
The company will also use advertisement. Both traditional and modern media will be used to communicate merits of Sony Watch, its price and retail outlets in the UAE market. Through advertisement, the company aims to advance its pull strategy and create an impact by directly targeting and appealing to the target market of Sony Watch.
Personal selling will also be used as a promotional strategy to appeal directly to people with diabetics and explain how the product can assist them to manage their conditions. The face-to-face interaction with consumers will create a strong bond between sellers and consumers (Perner 1). The company will however not use this strategy to entice consumers and create unnecessary demands among consumers. Instead, it will act as an opportunity to establish good customer relations and enhance customer experience.
In addition, to the abovementioned marketing mix, the company will also use public relations by visiting some individuals with the condition and providing free Sony Watches to create goodwill in the local market.
Works Cited
Armstrong, Gary, Stewart Adam, Sara Denize and Philip Kotler. Principles of Marketing. 6th ed. Australia: Pearson Australia, 2014. Print.
Chaudhary, Suchitra Bajpai. “National diabetes registry by end of 2015 in UAE.” Gulf News. 2015. Web.
Parment, Anders. “Distribution strategies for volume and premium brands in highly competitive consumer markets.” Journal of Retailing and Consumer Services 15 (2008): 250–265. Print.
Spann, Martin, Marc Fischer and Gerard J. Tellis. “Skimming or Penetration? Strategic Dynamic Pricing for New Products.” Marketing Science 34.2 (2015): 235 – 249. Print.
Nowadays, it is not a difficult task to sell something to someone. Lachani (as cited in BusinessNews Publishing, 2013) says that “the best time to sell more is when people are buying”. People like the idea of buying. Still, some advertisers and sellers make a mistake thinking that their products are necessary to everyone. Therefore, due to the existing variety of options and ideas, some sellers face difficulties in introducing or selling their products and services. The product that is introduced in this project is worth people’s attention because it has a purpose and a clearly identified audience, and it meets other crucial elements of the PAIBOC approach that is used by commercials.
Product Identification
The technological progress has already influenced a number of spheres, and the field of education is not an exception. Students like to use their smartphones and notebooks to complete their tasks, search information, and get access to a number of sources from different parts of the world in a short period of time (Keengwe, 2015). It is hard to predict what future and technological innovations are waiting for students and their teachers in 2020 (Nickerson & Zodhiates, 2013; Selwyn, 2013). Still, it is possible to observe what students and teachers want to achieve now: fast and effective exchange of information, easy access, and multiple options. Therefore, it is impossible to imagine modern students’ life without such technology as a netbook. It is as functional and effective as an ordinary notebook is. It is as compact, and light as the majority of smartphones and iPads are. It is not expensive, and its price is usually affordable for many students.
As soon as students comprehend the importance of netbooks in their education, the time to think about the company comes. Why not pay attention to Sony Corporation? It is one of the most fascinating and successful companies of all the times that began as a music innovator and creator and turned into a powerful electronic, gaming, and financial conglomerate (Neate, 2014). Sony netbooks are frequently used by many people around the globe. Sony netbooks help to make an academic life of every student easier and fascinating. Sony netbooks open students the door to a new world full of smart and easy to comprehend technologies.
The PAIBOC analysis will help to make the right decision and clarify if the offer is appropriate for a certain group of people.
PAIBOC Analysis
Purpose
Our task is to provide people with technological comfort by offering the best Sony netbooks for E2: education and entertainment. It is not enough to sell a netbook. It is necessary to explain to a person when the netbook is the best solution at the moment. Students may want to buy a netbook in order to have fast and comfortable access to their educational material, academic sources, and projects.
Audience
Netbooks are in demand among different customers. Still, students are the main audience because a netbook is an ideal option for students, who have to replace their writing and searching for activities with the speed of the world. Students may want to save their money for new entertainments and experiences. Still, they cannot neglect their academic needs. Therefore, students are the best representatives who should be eager to buy a netbook.
Information
Some people are still not confident in what a netbook is all about. They believe that netbooks may not be as useful as notebooks or light as cell phones. However, the current technological success demonstrated by Sony proves that the company is able to take care of its design and technological features at the same time (Neate, 2014). Sony has a long and proved history as a high-technological expert and a credible provider of the best services and products. There are many reasons to trust the company and its product, and the choice of students will be the choice in trustful and fair relations. Sony offers the best options and products for the price students afford.
Benefits
There are many benefits students can get when they decide to buy a netbook with Sony. First, the company provides its customers with guarantees. Second, portability and lightness will be available to all customers. Then, it is necessary to underline that students cannot stop moving. Therefore, work and life on the move are the main characteristics of the work with netbooks, as well as of student’s life. Finally, a netbook is the best and the cheapest replacement of an ordinary notebook for students.
Objection
Some students may have additional questions and doubts about the choice they make with Sony. As a rule, these doubts are based on such issues as limited power and low hard drive storage. Covering these doubts, it is necessary to underline the purpose of this product and the goals people try to meet when they choose netbooks. There is no need to play games or watch 3-D movies. Our goal is to provide students with a good product for typing, Internet searching, and fast communications. There is no need to say that a netbook is the best substitution for everything. It has its own disadvantages and shortages. However, in regards to the needs of potential customers and the prices set on the product, a Sony netbook is the best option millions of students could rely on.
Context
The choice of a netbook is the choice of all prospective customers. Those who are in need of portable electronic devices should not wait for too much to find a good alternative. Notebooks are too heavy and usually big for carrying them all the time. Smartphones do not have big enough screens to provide students with a chance to observe all documents or to type new projects. Finally, a netbook is a product that does not cost a lot, and almost every student could buy or rent it any time they want.
Students could listen to music while typing their texts, use different garnitures to facilitate the working processes, and enjoy their photos and videos from any available place in a visible and appropriate format. Finally, it is necessary to admit that many Sony netbooks have working applications that support the function of synchronisation and backup. Dropbox software is the best example for many students to rely on because many tasks and courses are introduced with the help of this software.
References
BusinessNews Publishing. (2013). Summary: How to sell when nobody’s buying: Review and analysis of Lakhani’s book. New York, NY: BusinessNews Publishing.
Keengwe, J. (2015). Promoting active learning through the integration of mobile and ubiquitous technologies. Hershey, PA: Information Science Reference.
Sony had become the leader in producing radios for consumers by 1950. It later expanded to other home entertainment devices like televisions. The company’s long history of innovativeness resulted in brands like Trinitron, Betamax and Walkman. However, due to the company’s policy on protection of intellectual property rights, the reluctance to license its technology to competitors, it lost its market share to inferior technologies.
Competitors like JVC were able to win more customers with their VHS video tape that had poorer quality with longer recording time which apparently, the customers preferred. On the other hand, Sony stuck to Betamax, which provided higher definition video but with a shorter recording time.
In the 1980s and early 1990s, Sony entered into the video gaming market as a supplier of components to the Nintendo Entertainment System (NES) home console. Then, it launched the PlayStation console in 1995 when Nintendo failed to introduce technologies with better gaming experiences. The PlayStation console offered developers incentives like higher margins and advanced development tools. Sony developed partnership with more than 160 software-developing companies in Japan. By 2005, the PlayStation had become the most popular console with unit sales exceeding a million and about 7,000 game products.
In 2000, Sony launched the famous PlayStation 2 (PS2), which was accompanied by a similarly popular hand held PlayStation Portable (PSP) in 2003, even though PSP was not as successful as previous Sony’s home consoles. In early 2005, the company introduced the popular PlayStation 3 with a processing power two times powerful than that of Microsoft’s Xbox 360, the most significant rival at the time.
Problem/Issue
Despite being a giant in the gaming industry, Sony failed to consider a number of important factors, which gave Xbox a major boost and competitive advantage. For instance, the company failed to focus on the priorities of the consumers. It failed to realize that what mattered most to the gamers was nothing but the game itself. This meant that having an inferior library was a major disadvantage to the company. The price tag of the PS3 also contributed to the low sales, especially when competitors like Xbox and Nintendo developed products worth almost less than half of the value for Sony’s product. The amount of effort made during advertisement of PS3 did not match the content of the console. Due to this factor, the customers were very disappointed, which attracted negative publicity.
Situation Analysis
Sony’s major competitors like Microsoft and Nintendo were able to meet the needs of the consumers (the players) by learning their preferences. In addition, they were able to supply their products in line with the prevailing market demand. By doing this, they successfully satisfied real game players who could not be convinced to wait a few months for another product to be launched.
One of the keys to success in the gaming industry is having a library of gaming titles to be offered to the consumers. In fact, this is what PS3 failed to consider. PS3 was launched with only fifteen titles, some of which had previously been available for the Xbox 360. In 199, Sega launched the ‘Sega Dreamcast’, which was hard to find in stores several months after its release.
With a price tag of $600, PS3 was the most expensive console compared to its rivals. Despite subsidizing the cost, PS3 was still more expensive than Xbox 360 by $200. The high cost, coupled with its lack of vibration feedback feature, discouraged consumers from choosing PS3.
Analysis of Alternatives
The main issue that prevents PS3 from achieving its target value of sales in the market is the price factor. It is clear that the price tag is high due to the imbalance that exists between the features included and the customers’ preference. For instance, PS3 uses a blue ray drive while competitors use the relatively cheap HD DVD.
Sony used lower hard drives in order to reduce its price. However, it was apparent that memory was not something consumers were ready to sacrifice, even though came with an SD slot. Therefore Sony needs to identify the consumer preferences before making a decision on which features to sacrifice.
The opinion of the current research is that “Content is king”. This implies that Sony needs to launch consoles with a library of quality titles. This can be seen in the case of Sega with Sega Dreamcast, which sold out and was hard to find in stores several months after its initial release.
Recommendations and Implementation
This analysis recommends that Sony should do a thorough investigation on consumer preference before coming up with a new product. This is evidenced by the failure of PS3 to have a good reception from consumers despite having higher cost of production.
Sony should also embrace flexibility, especially when technology and technological resources are concerned. For example, instead of sticking to its own formats like ATRAC, the giant company should be willing and ready to embrace other formats in order to capture a wider range technology developers as well as consumers in the growing market.
There should also be a balance between the quality and the pricing of the products developed. Sony developed PS3 with blue ray, which led to an increase in the market price, yet the rival Xbox 360 was using the HD DVD, which caused a reduction in its market price.
Sony Corporation, one of the largest manufacturers of electronic products in Japan and worldwide, anticipates losses for the 2011-2012 fiscal year at $ 1 billion against the backdrop of strong yen, floods in Thailand, and declining sales in the US and Europe. The main business of Sony, the production of TVs and panels, has suffered losses for 4 years in a row. The reason for this is a decrease of customers’ interest in TVs and a fall in panel prices due to oversaturation of inventory stocks along with the growing competition with Korean Samsung Electronics and LG Electronics and Japanese Panasonic. In order to resist the losses, Sony announced the reorganization of its television business. Also, the corporation will take the additional efforts to turn its losses into profits by improving liquid-crystal display (LCD) panels’ efficiency.
The article by Wakabayashi (2011) presents two figures regarding Sony’s profits and losses that are useful to understand its previous performance and predict further development. For example, one may observe that the net loss of Sony Corp., according to the results of the second quarter of 2011/12, amounted to 27 billion yen (about $ 350 million). According to the relevant data provided by Wakabayashi (2011), over the same period last year, the company registered the net profit of 31.1 billion yen (about $ 400 million). The sales of this Japanese manufacturer in the second quarter fell by 9.1 percent to 1.58 trillion yen ($ 20.45 billion) compared to 1.73 trillion yen ($ 22.14 billion) for the July-September period last year. Following the results of the current financial year, Sony Corp. predicts a net loss of 90 billion yen ($ 1.15 billion). The second figure, TV business operating profit / loss, focuses directly on the company’s operation since 2001. While the period from 2001 to 2004 may be characterized by the slight profits, the following years are marked by the growing losses. Therefore, it is possible to note a strong tendency of decline in Sony’s revenues from the TV industry.
Structure of the market and strategy of the firms
Speaking of the structure of the TV market, it is possible to mention a strong competition between such corporations as Sony, Samsung, LG, and Panasonic. Each of them experiences some losses in the identified market due to the global issues in the economy. However, it should be emphasized that some companies are more successful than others. For example, Samsung Electronics and LG Electronics were the pioneers in presenting LCD TVs, thus multiplying their profits and effectiveness on the market. In this connection, Sony was too late to succeed. In general, the mentioned companies tend to reorganize their manufactures to meet the customers’ expectations and anticipate them.
The strategy of Sony is to restructure and procure LCD TVs by collaborating with the joint venture of Samsung. Accordingly, the latter considers it beneficial to take the coordinated actions with Sony. In addition, it becomes evident for the readers of the article that Sony needs to ponder over addressing such issues as yen’s rise against euro and flooding in Thailand. It goes without saying that the mentioned issues cannot be controlled or prevented, yet the company should have a clear plan of action in case of such events to avoid severe negative consequences. As for Panasonic and LG, the article includes no details about their strategies except information regarding restructuring. Thus, the strategy of TV manufacturers focuses on struggling with the market challenges and increasing their profits through innovation and continuous improvement.
The use of online communities has been embraced by many technology companies and retailers to emerge successfully. Brands embracing the use of this strategy develop positive relationships with their potential customers. Such brands sustain better relationships by educating, inspiring, engaging, and interacting with the targeted customers across different social media platforms (“The State of Social Engagement” 3). Sony has been using an online community to support its PlayStation brand. This project analyzes the company’s use of the online community. The paper also proposes new recommendations that can be used to support Sony’s PlayStation brand.
Description of the Product
PlayStation is a gaming console produced and marketed by Sony Interactive Entertainment (“PlayStation Forums” par. 2). The gaming brand was introduced to Japanese consumers in 1994. The brand consists of “a media center, two handhelds, a phone, four video game consoles, an online service, and a line of controllers” (“PlayStation Forums” par. 4). In an attempt to realize its potential, Sony employs the use of an online community thus attracting and addressing the needs of more customers. This strategy has made it easier for the company “to deliver the most desirable customer experiences thus enlisting them to help drive business outcomes” (“The State of Social Engagement” 2)
Online Community
Sony embraces the use of an online community for its superior brands. PlayStation Forums is the name given to the online community used to support this brand. This community brings together many people from different parts of the globe. The PlayStation Community makes it easier for different customers to receive instant news, share ideas, learn skills, and engage with other similar-minded individuals. The online community ensures more people have access to new PlayStation software updates (“The State of Social Engagement” 4). To be part of the PlayStation Forums, users must read and understand the Rules of Conduct. Sony uses this approach to ensure the customers act ethically and respect one another.
Strengths and Weaknesses
Sony’s PlayStation Forums as an online community has several strengths. To begin with, the community has each of the four ingredients discussed in class. These include community utility, relevance, reach, and health (“The State of Social Engagement” 3).
This is true because the community promotes human interaction thus making it easier for the users to have their problems addressed. The community promotes peer-to-peer support and exchange of ideas. The online community is relevant because it seeks to address the interests and needs of the targeted members. The community is supported by the company thus driving sales. Social Support enables the users to rate their experiences thus attracting more potential customers. The inclusion of a code of conduct makes it easier for users to act ethically.
Sony has designed a powerful virtual platform whereby people can join the PlayStation Forums. The use of virtual worlds, blogs, and video games make these forums successful (“PlayStation Forums” par. 3). The support guides and addresses the needs of the users. By so doing, the company has managed to make its PlayStation one of its leading brands. The community is treated as an integral attribute of Sony’s social strategy. These strengths explain why the brand has been successful.
The only weakness is that the company focuses on the use of video games and virtual worlds to support the online community. This strategy explains why the community supports individuals who have registered on the website (“PlayStation Forums” par. 5). This weakness has continued to limit the number of people who support or purchase the PlayStation.
Promoting the Brand
PlayStation is one of the preferred home consoles across the globe. Sony uses its PlayStation Network to ensure millions of users get online services from every corner of the globe. However, the company decided to close its PlayStation Home (“The State” 38). This gaming network had over 40 million users (“The State” 38). The company uses the PlayStation Forums as an online community to support the brand. Individuals are required to sign up to join the ongoing conversation.
The community continues to attract new users every day. The community plays a significant role in making the brand one of the most successful home consoles in the world. However, the brand can benefit from various strategies and eventually make the company more profitable.
The ideas and concepts discussed in class can be used to support Sony’s approach to online marketing. To begin with, Sony can introduce new practices that have been observed in the gaming industry. For example, the use of personal dashboards, avatars, and support forums will ensure more people are willing to join the online conversation (“Online Community” 4). PlayStation Forums should make it easier for the members to access other games. By so doing, more people will be willing to be part of the community, share their ideas, and support the company’s business objectives.
The decision to adopt the concept of community management might promote admirable habits. For instance, new members can be provided with guidelines to understand various services provided on the website. The company’s “Refer a Friend” button has not been working (“The State” 38). That being the case, Sony should remove ineffective features to maximize the experiences of more customers.
PlayStation Forums community makes it easier for consumers and users to review different products. This practice has made it easier for more customers to join the conversation. However, only logged on members can present their feedbacks. The company should ensure more people (including non-members) can present such reviews. This approach will attract more users and eventually make the brand successful in the market (“Online Community” 6).
The use of recognitions (or rewards) can play a critical role in supporting the success of Sony’s PlayStation. Achievement markers will encourage more players to use the website. Sony should encourage users to unlock new adventures based on their current performance. This practice will increase the level of conversation (“The State” 38). The strategy will encourage more people to purchase every new product.
The use of advocates has been widely associated with this industry. PlayStation’s online community should, therefore, include an advocate program to support the targeted goals. The program will encourage more people and experts to provide quality advice to new members (“The State” 38). The people will be happy to join different forums and gaming scenarios. The company’s decision “to integrate the overall community experience into the game console is a great idea” (“The State” 38). The most important thing is to attract more individuals to support the brand and eventually make it successful in the market.
The PlayStation Forums community has resulted in new relationships that support the diverse needs of targeted customers. The company has developed a FunPage on Facebook whereby lovers of the brand can share their ideas. Although this strategy has continued to support the targeted goals, Sony should link the two to develop better online relationships (“The State of Social Engagement” 6). The move will attract more users and eventually make the brand successful. This strategy has made it easier for many companies to realize their business goals.
The online community manager should follow the feedbacks and reviews presented by different players. Such feedbacks can be used to address the major issues affecting the customers. The information should be availed to the company research and development (R&D) department to improve its future home consoles (“The State” 38). The approach will eventually support the needs of the targeted customers and make Sony profitable. New features can be added to ensure the targeted users track different products and consoles. The users should be able to create their personalized catalogs while at the same time reading different reviews.
The use of gaming points can play a positive role in supporting this online community. Such points should be redeemable whereby the users can acquire new games or levels. This approach will encourage more members to visit play different games. Such points can also be shared among the members to maximize their experiences. This discussion shows conclusively that PlayStation stands a chance to benefit from the aspects of online communities (“PlayStation Forums” par. 3). Companies that embrace the use of such communities will attract more customers, satisfy their needs, and eventually drive performance. This strategy will make it easier for Sony to market its Playstation brand.
Works Cited
Online Community: The Heart of Social Strategy. New York: Lithium Technologies, 2012. Print.
PlayStation Forums 2016. Web.
The State of Social Engagement. New York: Lithium Technologies, 2016. Print.
“The State on Online Branded Communities.” ComBlu 1.1 (2012): 1-65. Print.
Advertising has always been an important marketing tool, perhaps as old as commerce itself. They say that the man who figured out to put a sign on his shop was the father of marketing and advertising. The world has changed much since, and there are numerous ways of advertising one’s product – through billboards, radio, newspapers, television, and the Internet. The latter is slowly but surely pushing the other ways of advertising out, as Digital Media becomes more important than any other form of media that exists out there. The newest word in the advertising and brand-promoting strategy is Online Display Advertising. This assessment paper will be analyzing the use of display advertising for the promotion of a large brand such as Sony PlayStation.
Online Display Advertising as a Branding Tool
In the 21st century, traditional advertising is proving itself less and less effective. There are many reasons for that – the billboards are hardly aesthetical, the TV advertisements force people to leave until their shows are back on, and the paperback advertising pamphlets are considered to be little more than litter. All three are annoying, and generating annoyance is hardly the scope of any advertising campaign. Online banners were the digital analogy to these, and equally disrupting. As it stands, customers hate pop-up banners, which contributes to the popularity of the Ad-blocker extensions. However, display advertisements lack that notion.
As long as they are associated with the corresponding content, be that either text, audio, or video files, they are not perceived as invasive when compared to the other forms of advertising. Unlike static banners, they also contain far more information that has the potential to hook and inform potential clients of the services a company provides. It also serves as a much better visualization of the color schemes and symbols associated with the company, an outlet to promote its ideas and traditions. All this makes it an excellent tool for brand-promotion, as it is more efficient than any other advertising outlets (“The Benefits of Display Advertising” par. 2).
Display Advertising and Social Networks
The effectiveness of internet advertising depends on a lot of information and social profiling. Many social network companies, such as Instagram or Facebook, offer advertising services to large companies, such as Sony, Samsung, and others. Extensive advertising on such popular sites can be expensive, as these resources use the vast amount of customers’ personal information to arrange advertisements accordingly.
Facebook is one of the heavy-hitters when it comes to displaying advertising. It competes with Google for the same ad dollar. Until now, Google kept the tabs on the users outside of the Facebook database, while Facebook had extensive info on the users within its orbit. Now, the company is expanding into Google territory, has announced its intentions to target the audience outside of its user base (Rusli 1).
Instagram, on the other hand, does not feel like investing in the non-user base. With an audience of over 500 million users, it provides a platform-oriented for all businesses, big or small. With the ability to identify the user’s location, it provides them with ads of business in the area, which is a very useful feature for the smaller companies who wish to attract attention to themselves. Instagram works with three kinds of ads, those being the photo ads (classic banner), the video ads, and the carousel ads, which are considered an improvement over photo ads (“Advertising on Instagram” par. 1).
Display Advertising and Sony Playstation
The reason why big brands invest so much into display advertising is that it is capable of reaching most of the audience, combining all the good parts of previous advertising models while having weaknesses of none. Brand promotion involves several stages – first making your brand name known, and then informing the customer about products and services (Powell 1). PlayStation has no need for making its name known – everybody in the world knows the brand and what it promotes.
What it focuses on now is advertising its content. There are many products available for PlayStation – from new games to VR simulators. Display advertising could be used to inform the potential customers and buyers about the new products coming out, using short, snappy videos and carousel adverts.
Current Ads for Playstation
Using Moat.com, it is possible to locate all of the ads used by Sony PlayStation at this moment. It is obvious that the analysts at Sony realize the importance of using advanced advertising techniques such as display adverts. There is little to no static banners in their employ, all adverts either incorporating a video or a set of images to inform a customer that would hover over it. The ads have a clean, professional design, and give just enough information to bait the customer’s interest (“Sony Computer Entertainment” par. 1).
The presence of a logo in every single banner reinforces the image of the company in peoples’ minds and ensures the brand’s longevity. The company extends its reach to all social networks and other advertising resources, in order to ensure that everyone would know about their latest products, even those not particularly interested in gaming.
Sony is one of the most common brands in almost all the households across the globe. This is because Sony has been recognized to be among the leading brands in the electronic industry. Essentially, Sony is a major corporation which is headquartered in Tokyo. This company was formed in 1946 when two Japanese engineers, that is, Masaru Ibuka and Akio Morita set to establish their own company. During this phase, Sony had only 20 employees (Chang 2011). Currently, this company employees over 168,000 people worldwide.
Much of the strategic thinking of the hugely successful Sony Company has focused on lifestyle as the key determinant of a product. However, following the commitment of the company to focus on small – screen, portable television set in the early 1960s, Sony acknowledged the need to constantly re-evaluate the company’s scope in consumer electronics, and this philosophy led to the walkman stereo which was introduced in 1979 (Ferrell, Hirt & Linda 2006).
Through skilful innovation and creativity Sony became aware of the importance of understanding the changing social attitudes and behaviour in order to develop more of what the company’s executing later called software thinking. Essentially, its music and motion pictures are rated to be among the most comprehensive entertainment companies in the world. The Sony brand has been ranked among the top 100 brands in the world.
This implies that it is worth over $11 billion. Despite all these, Sony faces certain challenges (Hill & Gareth 2007). For instance the financial crisis which ht the globe in 2007 disturbed Sony’s operating environment. This was characterized by decreased demand on their products which led to losses which were recorded in the year which ended March 31, 2009. In order to counter this, the Sony management initiated a string of measures which were aimed at curtailing this trend and ensuring that the brand remains to be among the leading brands (Hill & Gareth 2007). Among the strategic plans that Sony is working on include carrying out a restricting process that would ensure that the organization retails its vitality. In addition, since the year 2010, Sony has been working on reducing operational costs.
This has been further seen with the resolution to reduce and eventually stop producing items which were not profitable to the organization. These changes are based on ‘the transformation 60’ which entails the process of clarifying the purpose of the organization with an emphasis on structure and technology and ensuring that the organization is in a position of sustaining the projected profit margins.
The Strategy Being Adopted by Sony to Regain Lost Market Share
As a company, Sony places a lot of emphasis on innovation and technical advancement. This was characterized with the walkman which Sony brought into the market. Furthermore, the introduction of the Viao notebook has also played a key role. It is worth mentioning that Sony tries to achieve its goal of playing a significant role in various sectors which have brought forth these positive results.
The introduction of the HD version of the flat screen television has brought to the fore the creativity and the innovative potential that this company has (Herstatt 2006). Essentially, as a strategy, this company has strives for technical advancement which has ensured to a greater degree the competitive advantage over the rest.
As an electronic company, Sony relies on the advancements which are made in the information technology industry. Essentially, the current state of affairs in the world stipulates that a company should be in a position of ensuring that it can be able to stay on top of the game through innovation and creativity. It is worth noting that the exponential growth in the consumer electronics industry over the past few years can be mainly attributed to the emergence of a phenomenon called the convergence.
This has been based on the fact that since companies cannot really come up with entirely new products anymore, they increase their market share by inventing products combining features that were formerly only available in separate products (Herstatt 2006). This approach of merging these products is what is termed as convergence. The confluence and merging of separate markets of digital based audio, video and information technology. This has led to an increase in demand of consumer products which have got multiple functions (Hill & Gareth 2007). It is also important to note that the revolutionary emergence of the digital technology has also contributed to the increase of global sales in the consumer electronic industry.
This being the case, the ability of a company to stay afloat in these times will depend on its ability to take a preceding role in innovation and creativity. Japanese companies like Sony have captured the consumer electronics market. In a survey that was carried out which was measuring the health of famous consumer products based on creativity and innovation, Sony brands was listed to be among the popular brands.
In the current market, Sony’s strategy is to actively respond to the digital revolution which is taking place (Ferrell, Hirt & Linda 2006). Today, the markets for entertainment hardware and software are being redefined by forces of digital and networking technologies. Furthermore, the introduction of satellite broadcasting and other types of electronic distribution is enhancing the value of all types of entertainment software. In this case, Sony’s course of action is clear. In this case, there is the emphasis on information technology as a key element in the future prospects of this company. Essentially, the driving force of this company is to enhance the incorporation of digital technology in the hardware and software business.
In this case, as a strategy, this will add value to the vast store of music and filmed entertainment assets. As this process unfolds, the belief is that it will be critical for the company to extend the business domain in order to be in a position of embracing the electronic business domain. Idei, one of the key leaders within this organization went on record to highlight information technology based on the fact that it became easier to create the synergy between hardware and software content.
This was especially based on the fact that internet and broadband technology had been developed. Initially, the synergy was difficult to attain. This was because of the analogue age that had taken centre stage (Hill & Gareth 2007). However, the current age puts this company in a more strategic position as all content which is CDs and VCRs can be condensed into a single entity.
As a major business strategy, Sony started digitizing its concepts in film and music content. This was in preparation of the broadband age. During the 2002 annual report, Sony had already digitized 1,000 films, 33,000 hours and television programs and over 500,000 songs. This led to the establishment of the Movielink which was done jointly with other film companies. Eventually, Sony announced its plans of using these sites for online downloading of Sony’s films, games and movies. This was largely geared towards establishing a market edge over the other competitors who were obtaining Sony’s market share. Essentially, the overall strategy of this company was to ensure that it gels innovation and creativity into the emerging technological trends which were being experienced.
At this stage it is worth mentioning that from the perspective of a company pioneering a new technological standard in a marketplace where network effects and positive feedback loops operate, the key question becomes, what strategy should be pursued to establish a format which remain to be dominant? In response to this question, to an extend Sony’s strategy has worked to their advantage. This is because Sony has established a format which has been build. This has installed the base for its standard as rapidly as possible, thereby leveraging the positive feedback into its technological advancements (Hill & Gareth 2007).
This has further been occasioned by the approach where the company has been able to induce customers to bear the switching costs and ultimately locking the market into its technology. In essence, this process requires the company to jump start and then accelerate demand for its technological standard or format so that it becomes established as quickly as possible as the industry standard, thereby locking out competing formats of other companies. Some of the preferred strategies which have worked for this company have included ensuring a supply of complements. In this case, it is important for the company to make sure that in addition to the product itself, there is an adequate supply of complements.
For instance, no one will buy the Sony PlayStation 3 until there is an adequate supply of games to run on that machine. In this light, before Sony produced the original version of PlayStation, that is, in the early 1990s it established its own in – house unit what was supposed to produce videogames for the PlayStation. This was a successful feat because the moment it launched the PlayStation, it also simultaneously issued sixteen games to run on the machine, giving the consumers a reason to purchase the format (Hill & Gareth 2007).
Furthermore, Sony also licensed the right to produce games to a number of independent game developers, charged the developers lower royalty rate than they had to pay to fellow competitors such as Nintendo. Thus, the launch of the Sony PlayStation was accompanied by the simultaneous launch of thirty or so games, which quickly helped to stimulate demand for the machine. Pricing is another aspect which this company put into place that ensured that it managed to stay on top.
In this case, a common tactic to jump – start demand is to adopt a razor and blade strategy. This is characterized by pricing the product low in order to stimulate demand and increase the installed base. In this case, the Sony PlayStation provides a good example of this strategy which this company has used effectively. Sony linked the introduction of the PlayStation with nationwide television and advertising aimed at its primary demographic and in – store displays that allowed potential buyers to play games on the machine before making a purchase. Question three
The Porter’s diamond model is model which was developed by Michael Porter in order to evaluate the competitive nature of a company based on its location. This model is based on the fact that there are reasons which make some industries which are located in certain nations are more productive and competitive on a national and international scale as compared to other organizations in other nations (Herstatt 2006).
According to this model, there are four main factors which play an active role. These factors include the factor conditions, that is, those aspects which when exploited by companies within a nation, they increase the company’s competitive advantage. Some examples of such factor conditions include highly skilled workforce, linguistic abilities of the workforce and rich amounts of raw materials (Hill & Gareth 2007).
Secondly, the demand conditions of the product. In this case if the demand conditions for the product are higher within the country, then the local firms will ensure that they work at producing high quality products than the foreign products. This ensures that the company will work towards ensuring that the quality provided outclasses the products from other firms. Consequently, this will ensure that the company is able to perform better on a global front. In this case, Sony being a Japanese company strives to ensure that the quality of the products that it offers its local consumers is of good quality (Hill & Gareth 2007).
This has ensured that this company gains a better standing regarding electronic products on an international scale. Thirdly, is the related and support industries. This is based on the premise that when the local industries are competitive, the chances that the corresponding companies are also going to be competitive are higher. This leads to ensuring that companies which are based in these countries strive towards enhanced quality and efficiency when it comes to the provision of goods and services. For instance, Sony as a company benefits from a string of highly competent businesses which offer related services and products in Japan (Hill & Gareth 2007).
Thus, ensuring that Sony as a company is able to gain a footing on the global scale. Lastly, the firm strategy, structure and rivalry play a crucial role in this sector. Essentially firms from different nations have got different structures. This at times affects the competitiveness especially when it comes to the national front.
Case Analysis: Sony
Essentially, Sony is best placed in the world as a consequence of the services that it has at home regarding the quality of the labour force. It is worth noting that labour costs in Japan, including wages and salaries, seasonal benefits and fringe benefits are high in comparison with other countries in the region. In essence, the Japanese labour force is highly productive and well educated. This gives Sony an upper hand locally as compared to other competing firms (Hill & Gareth 2007).
This implies that Sony has been in a position of producing high quality products and electronics based on the quality of the work force that it has. Consequently, it has been better placed to excel internationally as compared to other firms. Secondly, the work ethic in Japan is quite high. This has ensured that the company is able to deliver products in time. This has earned Japanese companies an upper hand among the consumers and the buyers of electronic products. In addition, putting into consideration the fact that Japanese companies work together on certain common fronts ensures that their products gain easy access into other markets globally based on the innovativeness and creativity which is enhanced.
Sony thrives on strategy. This has been encouraged at the national level where the government has ensured that it creates a climate that enhances strategic alliances. Sony has become a highly sophisticated industry which has been buoyed by the country’s policy regarding technology. Thus, most of the strategic decision and choices of this company have been based on the ability of the company to maximize on this fact.
Essentially, the current society is tending towards digitalization of information, this has spurred this country to establish policies which have placed electronic companies in this country to build and establish products which meet the challenge of the age. Eventually this has ensured that this company is able to place itself strategically in the national scale (Ferrell, Hirt & Linda 2006).
Demand conditions within Japan have also played a crucial role towards ensuring that this company is able to thrive globally. Due to the fact that the Japanese are highly educated, the natures of products are also of high quality. This has pushed Sony to work towards meeting the high quality needs of the country thus ensuring that the products have an edge on the global front. Sony has been going through a restructuring phase in terms of leadership.
Due to the fact that this is an international brand, the management have sought to ensure that the regional companies are in tandem with the prevailing conditions of these regional companies. This has been enhanced by the leadership approaches which have been embraced by the management team (Herstatt 2006). Essentially, this has ensured that the company is able to resonate with the challenges which are facing each regional section locally while at the same time meeting the standard quality measures and practices.
The nature of operations of this company has ensured that this company stays on board. The brand that Sony bears is an international brand which is associated with quality. Essentially, this has ensured that this company gains client base across the globe. It is worth mentioning that the nature of operations which has been embraced by this company has ensured that the company is able to maintain focus and objectivity in all the operations that it undertakes. Coupled with creativity and innovative ideals held by the workforce, the company brand will remain to stand out across the globe.
Reference List
Chang, SJ 2011, Sony Vs Samsung:The Inside Story of the Electronics Giants’ Battle For Global Supremacy, John Wiley & Sons, New York.
Ferrell, OC, Hirt, GA & Linda, F 2006, Business:a changing world, 5th edn, McGraw Hill/Irwin, California.
Herstatt, C 2006, Management of Technology And Innovation in Japan, Illustrated edn, Birkhäuser, New York.
The stories of the companies and the people who managed to find their own formulas for rapid success belong to the number of the most popular topics for discussion among people connected to media. Anyway, opposite situations when companies lose money and power in a short period of time should also be discussed. Their negative experience is as important because it may help to make necessary conclusions. Furthermore, analyzing this experience will allow developing recommendations for the companies that attempt at reclaiming their authority. Sony belongs to the number of companies facing a series of issues that have had quite a negative influence on its business and the popularity of its products among the consumers. According to the case that we were supposed to study, Sony’s popularity has significantly decreased during the last decade.
There are a few factors that contributed to the present situation and affected Sony’s performance in that period. At first, there was a high level of competition in the market, and a lot of newer brands appeared. It was extremely important for the brands to prioritize the activities that would help them to attract and keep the attention of their prospective buyers. Other companies were developing devices that could become popular among young people presenting the most important group of customers for such brands. At the same time, Sony was wasting money on the development of products that had already been launched in the market by other brands. Macroeconomic factors that have influenced this situation also include growing economic competition between Japan and other Asian countries such as China, South Korea, and Taiwan. Furthermore, there was a series of accidents that seriously disrupted the company’s activities and caused a substantial financial loss. For instance, the hacking attack in 2011 and fire in London that destroyed the company’s warehouse added to the situation that was constantly deteriorating.
If I had to make recommendations for the managers of the discussed company, I would attract their attention to the importance of the customer-centric strategy discussed by many researchers such as Ritter and Henrik, who summarized its main points. The importance and positive outcomes of the use of such an approach are stated by many researchers, including Senn, Thoma, and Yip. Within the frame of this approach, it is important to pay more attention to developing the content that would present an interest for prospective buyers and encourage them to try new products. As has been stated, many specialists working for the brand tend to underestimate the importance of the content produced by the company.
It is clear from Sony’s official website that the information located there is helpful from a technical point of view; at the same time, it is not enough to attract younger customers who may bring substantial profit to the company. To continue, I would recommend the managers of Sony company to revise their policy concerning the launch of new products. As it is clear from many printed publications devoted to business, the role of innovations should not be underestimated. For instance, Mahmoud et al. claim that innovations help to maintain the company’s position in the market and gain interest in the customers. What is more, I suppose that it would be important for the company to take into consideration new ideas and hire more employees who would be able to bring positive changes to the relationships between the company and the entire community.
Works Cited
Mahmoud, Mahmoud Abdulai, et al. “Market Orientation, Learning Orientation, and Business Performance: The Mediating Role of Innovation.” International Journal of Bank Marketing, vol. 34, no. 5, 2016, pp. 623-648.
Ritter, Thomas, and Henrik Andersen. “A Relationship Strategy Perspective on Relationship Portfolios: Linking Customer Profitability, Commitment, and Growth Potential to Relationship Strategy.” Industrial Marketing Management, vol. 43, no. 6, 2014, pp. 1005-1011.
Senn, Christoph, Axel Thoma, and George S. Yip. “Customer-Centric Leadership: How to Manage Strategic Customers as Assets in B2B Markets.” California Management Review, vol. 55, no. 3, 2013, pp. 27-53.