Chapter 3. Sony: Battling the Marketing Environment’s “Perfect Storm”
What microenvironmental factors have affected Sony’s performance since 2000?
A few years ago, the market leader of consumer electronics was monopolized by Sony Corporation. Every consumer had at least one of Sony devices. But today, the market changed, but Sony didn’t. Embracing their rigid conventional technologies culture, competitors undertook Sony with a more connected contemporary digital device.
The microenvironment that affected Sony’s ability is the company itself. Sony was too late to adapt to technology changes by losing sight at modern Digital Era technologies. The top management failed to see the opportunities that they had with Sony’s capabilities when they are too busy embracing their out-dated gadgets. The R&D department did not look through enough of new technologies but busy develop their already established devices. For instance, they got everything they needed to diversify their old CD business to a modern iPod/iTunes music world, but they blew the chance away. They even ignored the trend of flat screens by keeping their cathode ray tube technology. Giving away the chance to other competitors to lead the market which brings me to my next point is Sony’s strong competitors.
Competitors is also one of the factors affecting Sony’s success in microenvironment. Sony was competing by many advanced and solid competitors that made them lose in the battle. These competitors introduced a new era of gadgets that Sony could not handle. Cases like Apple got in the competition by introducing their new music device, followed by TV companies, Nintendo and Amazon had made Sony lose their existence in the marketplace.
Sony’s CD business dropped tremendously prior to the launch of the first IPod in October 23, 2001. The day that Steve Jobs changed the entire concept of music experience by giving consumers the ability to listen in high quality audio files in an instant. Apple brilliantly changed the new revolution for music consumption, an idea that Sony incapable of doing anymore (Walters, 2011).
Similarly, Sony even lose the game in TV business when they are too busy sticking to the old-fashioned Trinitron cathode ray tube that they launched back in 1968. While Korean companies like Samsung and LG were moving rapidly ahead with flat screens. Not only that, Chinese TV makers like Haier, Hisense, and TCL also beat Sony with cutting edge panel offerings at a fair price.
On the 19th of November 2006, Nintendo introduced its motion-sensing Nintendo Wii. But still, Sony’s ignorance did not look it as a wakeup call but instead they upgraded their already established PS3 with a pricey technology that produced a loss of $307 per unit sold according to BetaNews (Fulton, 2007).
Sony even lose the competition in online reader gadget to Amazon. Sony launched their first e-reader device called Reader Pocket PRS a year before Amazon introduced its Kindle. Both device had the...