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Sony vs Samsung

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Kelvin Zheng

on 17 December 2012

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Transcript of Sony vs Samsung

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli By: Kelvin Zheng Sony vs Samsung Sony History:
- First, they were a small company started off with telecommunication. Later, they changed name to Sony. Sooner or later they expanded and went oversea to the U.S. From small TVs to enormous.
From enormous width to flat screen.
From colorless TV to colored to High Definition to LCD to LED screens and 3D.
From standing on a table to hanging on a wall.
From no internet to internet TV. IFE and EFE Accomplishments of Samsung 2001-Develops World's first 40 inch TFT-LCD Sony's Corporate Social Responsibility Sony tries to limit wastes and recycle. Recycling what they could will protect the environment and saves from using new resources.

They are trying to decrease energy consumption for BRAVIA tv's.

Have programs and museum that teaches kids about new technology. Boston Consulting Group (BCG) Matrix I believe that Sony's BRAVIA is a "Stars" of the BCG Matrix. This is because television will not be replaced in the near future. The End Internal/External Matrix Sony's result is average and belongs to the middle of the box. TELEVISION EVOLUTION!!!!!! Any Questions??? Comments??? Thank You
Very Much Hope you Enjoyed it. =) In 2005, Sony created a new brand line of TV called BRAVIA. Sony Corporation has a lot of financial problems. They have a loss in operating income of 67 Billion yens. Samsung Is the leader of sales on televisions and for a very long time.
Samsung has been on the rises for the past 5-7 years. Space Matrix X-axis = .75
Y-axis = .58 New corporate strategy. “Sony is accelerating its efforts to turn around the television business, for which it is targeting a return to profitability in fiscal year 2013. Sony has already initiated cost reductions in LCD panel manufacturing in addition to pursuing further production efficiencies by reducing model count by 40% in fiscal year 2012 compared with fiscal year 2011. Comparing fiscal year 2013 to fiscal year 2011, Sony is also targeting a 60% reduction in fixed business costs and a 30% reduction in operating costs as it executes a thorough overhaul of the television business." Michael Porter's 5 forces 1.)Rivalry Among Competitors: There are a lot of competitors between electronic companies. But there are only two competitors who are ahead of Sony in television sales. They are Samsung and LG. These are strong companies that are good at making LCD flat panel television which also has High Definition Resolution. According to Q1 in 2012 sales of television, Samsung, LG and Sony is respectively 26%, 14.6% and 9.4%. Every company trying to boost up their sales and quality of TVs.

2.)Bargaining power of consumers: There are many consumers who are very allergic to prices. Customers tend to go Television shopping when there’s a sales. Between all the good brand like Samsung, LG and Sony. Customer would buy the one with bigger screen and the correct price that a TV is worth. Consumers could buy it online or different retail stores for a cheaper price. During big holidays there are a lot of good bargains out there and gives them power of consumption toward TVs.

3.)Bargaining power of suppliers: Sometimes suppliers have large excess amount of quantities of television. They need to give discounts to large orders from departmental/retail stores like Target, Sears, Wal-mart, Best-Buy and different online sites. Etc. Suppliers could also control the quantities, so they might want a better pricing for their model counts. Suppliers don’t really want over supplies of old model TVs, they would just sell leftovers at discounted prices.

4.)Potential Development of Substitute Products: Consumers might want a cheaper brand of television if they don’t mind the quality of the product. Different prospective from different consumer’s opinion on buying substitute products and think it’s just as good as the Sony TVs. They might think that the resolution is about the same for a cheaper price too. Smaller TVs, older models could be substitute products for poorer families. There are smaller brands in other big countries that are developing and want to establish a well known place in the market of the television world. Countries like China, India and some other random founder would try to rise in the market.


5.)Potential Entry of New Competitors: I believe new competitors that try to enter into the television business would not be hard or easy. Why I say that is because you need good source of capital to invest into R&D to make good TVs. Not easy because new competitors might not be recognized and don’t have the reputation of making good television. Definitely need trust from consumers and time to build up a reputation. SWOT Analysis SWOT Analysis:

Strengths – The brand itself is in the top 5 of the television business. They have new product growths in technology. Sony needs to reorganize their company. Green technology would be more efficient to the customers.

Weakness – Poor management has made the company suffer communications throughout from lower to upper management. The loss in operating income and high operating cost has taken a toll on the company.

Opportunities – expand into other emerging markets, to incorporated Sony’s mobile devices to television. Research and development would be a good opportunity for growth. Need to find new markets and advertising. This would probably help their company gain more opportunities on the market share.

Threats – Global disasters, competitors like Samsung and LG, lack of sales, bad economy is a continuous threat. Partner reliance while joining ventures with them. Whatever Sony has Samsung is nothing less. They were once in a joint venture with each other on LCD displays.
Sony and Samsung has smart TV's that could go online. HDTV, LCD, Plasma, LED TV's It will never be obsolete. 2005-Developed the world's first OLED for 40'' TV 2007-Attained No.1 worldwide market share position for LCD for the sixth year in a row 2009-Developed the world’s thinnest 3mm LED TV panel
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