This report is designed to find a solution to poor sales of Sony televisions. Our research shows that Sony needs to develop a large, high quality, Internet enabled 3-D LCD television that easily integrates with competitor products for a competitive price.
Sony is not making a television that meets consumer wants and needs. Sony’s television division is losing money and they don’t have a concrete plan to turn things around. Sony who was once the number two television producer in the world has fallen further behind Samsung and has been overtaken by LG (Hyun-joo, 2010). Sony has had to scrap plans to launch their new OLED televisions because of their projected losses which would occur from bringing these televisions to the marketplace (Wakabayashi, 2009). Sony is gambling that consumers will jump on the 3-D bandwagon; Sony has thrown all its weight behind producing 3-D televisions. These televisions will cost roughly 20% more than LCD TV’s of the same size. There is concern form industry experts that consumers whom have just made the switch to HD televisions will not be ready to purchase 3-D TV’s. (Wakabayashi, 2010)
Sony has not been able to compete with their competitors on price because of the current market conditions around the world. The yen rose sharply against the Korean won exacerbating uneven price competition between Sony and their main rival Samsung. A strong yen erodes sales from overseas and makes production costs in Japan highly inflated. Japan which is in the midst of a tough recession has forced Sony to shut down three of their Japanese factories(Tabuchi, 2009). Sony’s TV division lost 1.34 billion dollars last year which amounted to more than half of the company’s operational losses. Sony’s market share has fallen to 13.1% of the market highlighting their sixth straight year of losses in the TV division (Yoo-chul, 2009).
To gain insight in to consumers wanted in a television we did a convenience sample of interviews. Each member of our team interviewed two people whom it was convenient for them to interview. I interviewed my sister Leah Frank and her husband Aaron Adler. While this was a convenient sample there are some interesting characteristic about my interviewees that are relevant for discussion. Aaron is has a PHD from MIT in artificial intelligence. He has a vast knowledge of electrical systems and electronics not possessed by the average consumer. Leah is a high school English teacher who by her own admission is not a technical person.
Consumers want to be able to easily use the Internet through their television set. Aaron Adler (personal communication, March 6, 2010) told us, “Mostly it's nice to get updated TV listings, weather information, update movie queues (Netflix), look up movie ticket information, and playing my digital music / movie library. At this point, hooking into YouTube or playing the TV shows from the internet (hulu or...