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Sony Presentation

Team 1
by

Emily Bardell

on 4 May 2015

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Transcript of Sony Presentation

World’s first PlayStation Certified Android smartphone
World’s first PlayStation Certified Android smartphonem
Team 1:
Emily Bardell, Carson Cushing, Brianna Gatto, Katie Guthrie, Lynne Kubik, David Sama, Justin Wills, and Hannah Zhang



Executive Summary
Recommendations
Executive Summary
Milestones
Current
Challenges

Organization
and
Industry
Analysis

Mobile Communications

Sony Corporation’s businesses:


Electronics
•Creative software
•Electric vehicles and batteries
•Entertainment
•Financial services


•Milestones
•Organization Industry Analysis
◦Porter’s Five Forces
◦Distinctive Competencies
◦Resources and Capabilities
◦Value Chain Activities
◦Organizational Structure
•Current Challenges
•Recommendations


Milestones
Porter’s Five Forces

The Risk of New Entrants


Risk rate: Low

Barriers to entry:
Economies of scale
High capital requirement
Technology knowledge
Internal Rivalry


Risk rate: High

Samsung, Apple, Sony

Must stay ahead of the competition



The Bargaining Power of Buyers


Risk rate: Medium

Consumers have huge impacts on the products

High switching costs


The Bargaining Power of Suppliers


Risk rate: Low

Global supply chain

Second edition of the Sony Supplier Code of Conduct

The Threats of Substitution
Risk rate: Low

Mobile devices have become an important part

No real substitutes
Value Chain Activities

Organizational Structure

Distinctive
Competencies
&
Resources and
Capabilities

Distinctive Competencies
Research and development

User experience

Resources and Capabilities
Technological know-how
Culture
Operational capabilities
Time to market
Supply chain management

Recommendations
Questions?

Primary Activities
:

Inbound Logistics:
Operated internally or by a third party

Operations:
Occurs across multiple contents

Outbound Logistics:
Well connected to international delivery networks

Marketing and Sales:
Publicly committed to social responsibility

Services:
Warranties, guarantees, repair centers, online help desks, and call centers

Secondary (support) Activities:

Human Resources:
Encourage high productivity

Technology:
More advanced in creating innovative high quality products than competitors

Strategy:
"Fair Procurement "

Research and Development:
Created a R&D center in China

1946
1957
2001
2005
2006
2008
2010
2011
- May 1946- Tokyo Tsushin Kogyo (Totsuko)
established in Nihonbashi, Tokyo

May: Tokyo Tsushin Kogyo (Totsuko)
established in Tokyo

Company name officially changed to Sony Corporation
Listed on the TSE (Tokyo Stock Exchange)
Established a reputation for technical innovation and revolutionary consumer electronic products over next three decades

1957
1946
Sony and Swedish telecommunications equipment company, Ericsson, created a 50-50 joint venture named Sony Ericsson


2001
First Walkman Phone

Phones are enhanced with Sony’s Cyber Shot technology

Focus on research and development
Android powered phone

February 16: Sony acquired Ericsson’s share of Sony Ericsson for 1.5 billion dollars
Renamed subsidiary to Sony Mobile Communications AB
March: Xperia S released
Decrease in sales and operating
revenue
Japan earthquakes
Thailand floods
Restructuring costs

2012
2013
Sony restructures as “One Sony”
Mobile
Digital imagery
Gaming
Revamp Sony Mobile
1. Working on global structure
2. Changing headquarters location
3. Same development platform for all phones
4. Marketing smart phones to emerging markets
Xperia Z released

2005
2006
2008
2010
2011
2012
2013
Current Challenges

Sony Mobile lost 1.8 billion dollars last year and has caused the company to post operating losses in 5 of the last 6 years.

Sold 40 million units the last fiscal year, an increase of about 2 million units from the previous year.

Mobile division has already cut more than 10,000 jobs to date.

Market share only sits at about 4% compared to Samsung (30%) and Apple (15%).
Product awareness
Average consumer is not fully aware of the capabilities of the Xperia Z3, as the marketing campaign for the device is not successful.

Lack of availability
Products only available on T-Mobile.
Missing out on millions of potential customers.

Missed opportunities
Sony refused to harness its power in other product lines to develop a top-of-the-line phone when the market was up for grabs in the mid 2000’s.
Sony has been playing catch up with competitors ever since.
Overspending
Sony has spent over 1 billion dollars developing the Xperia product line and selling it to consumers while taking huge losses.
Sony does not have the money to buy itself out of this problem like it did in previous situations.

External challenges
Chinese manufacturers producing smartphones that match quality of other devices while undercutting them on price by hundreds of dollars.
What will the future of Sony Mobile entail with an already low market share and now having to deal with more competition?
Recommendation 1: Get Out
Sales have been decreasing for six years
"Sony will no longer pursue sales in areas, such as smart phones, and will be focusing on areas of business that are generating profit..." - CEO
Recommendation 2: All In

Seek the crown of Android
Advertise, advertise, advertise
Stay premium and pricey
Time to market change
Fix relationships with carriers
Collaborate with existing product lines

World’s first PlayStation Certified Android smartphone
Full transcript