Internal Resources Assess the resources you need to implement your strategy. Sony uses its differentiation generic strategy to create competitive advantage to support market penetration.
Marketing and branding can no longer Sony diversification strategy relegated to a tactical level handled by marketing managers who do not have an appreciation of the larger picture.
There are Chief Marketing Officers CMOs who are responsible for global marketing operations for different businesses, but a unified structure does not exist.
It epitomized the classic rule of success in branding wherein need for a brand and associated equity has been created, when it previously did not exist. For example, novelty and uniqueness were among the factors that lead to the success of the PlayStation.
But the importance of having a more lean and focused business model is critical for Sony to establish itself going forward.
The company had an opportunity to leapfrog Apple in the creation of something similar to the genre defining iPod, Sony diversification strategy did not take that opportunity. For example, Sony continues to innovate its gaming products, which are a key growth driver that outperforms competitors.
In other words, Sony needs to elevate the marketing function to the boardroom and enable marketing to take the lead in driving business strategy.
Also, Sony adjusts its intensive growth strategies to continually grow the business despite changes in markets. Consistency is often mistaken by brands for complacency and static existence. Emergence of Asian brand superpowers like Samsung and LG, coupled with the emergence of Apple has made the segments in which Sony operates, extremely competitive.
Lack of brand evolution: But, the underlying cause of the rapid decline of a great organisation has been inflexibility and rigid mindset of the senior management. The objective is to attract more customers and obtain a larger market share. Focus on product diversification that represents an attractive opportunity for your business, such as an instance where the market is growing and no other company is meeting the demand.
Standing tall amidst the ruins is the video games business where Sony has the PlayStation brand. Samsung has leapfrogged Sony in the television segment and both Samsung and Apple have dominated the smartphone business. The CEO and the Board of Directors should realize that there is a critical need to evaluate the meaning and identity of the Sony brand among consumers in these changing times.
What should Sony do to regain its lost brand supremacy and build strong brand equity? But such a consistency should not come at the cost of the brand refusing to constantly adapt to the dynamic market structure.
Does your team have the product and market knowledge to achieve your sales targets? If you make tools for building professionals, for example, consider developing a version that appeals to amateur users.
Though it is credited with inventing categories that did not exist, but identifying opportunities and creating genre-defining innovations are now much harder than it was in the past. Evaluate the results of your sales and marketing activities in the test.
Learn more about our services and how your company can get ahead. This intensive growth strategy supports the generic strategy of differentiation in terms of product design.
The success of this initiative needs to be measured and assessed at an in-depth level. The early s were difficult years for Sony. Based on market development, a strategic objective is to grow the company by entering new market segments.
Effects of unrelated diversification has been very pronounced for many family owned Asian conglomerates. In this intensive growth strategy, the goal is to develop products better than the competition. An intensive strategy specifies the approaches used to ensure business growth.
Both Apple and Samsung have been successful in doing this continuously. But as they have evolved and global competitive forces have shaped their operating models, they have learnt about the importance of focusing on core competency areas.
In televisions, Samsung has clearly taken the lead in terms of innovation, range and functionality. Increasingly, and quite worryingly for Sony, Samsung has managed to upstage it in the high-end television segment through genre-defining innovation.
A strategic objective based on the product development intensive strategy is to grow the company by rolling out new breakthrough products.To Diversify or Not To Diversify. diversification as a corporate strategy goes in and out of vogue on a regular basis.
depending on its approach, Sony could decide that it is in the. Diversification Strategy. Diversification Strategies Diversification is a risk that companies have to take in order to stay competitive in it’s changing market. Some companies have been successful diversifying their business, and in opposition there are other companies that in the process of expanding their business have not succeeded.
A product diversification strategy considers existing products for new pricing or expands new products into markets to leverage existing sales avenues or establish new ones.
With continuing growth and success, Sony adopted the strategic business unit (SBU) form of the multidivisional structure to implement its related linked diversification strategy, Sony’s corporate-level strategy – the SBU form consists of 3 levels comprises the corporate headquarters, strategic business units and SBU divisions.5/5(33).
Sony – The Battle To Stay Relevant A highly relevant and discussed topic in the domain of branding is the importance of maintaining consistency for brands in marketplaces characterized by diverse cultures, increasingly empowered customers and ever changing trends and customer preferences.
Sony’s generic strategy for competitive advantage (Porter’s), intensive growth strategies & objectives are analyzed in this electronics business case study. Diversification. Diversification is the least significant among Sony’s intensive growth strategies. Growth through new business development is the goal of this intensive strategy.Download