xu,xiaoxuan (connie) zhang,yao (stephanie) liu,zhenzi (christina) nov.10 th,2008
TRANSCRIPT
Xu,Xiaoxuan (Connie)Zhang,Yao (Stephanie)Liu,Zhenzi (Christina)
Nov.10th ,2008
Industry Analysis
Company Analysis (History, Current, Future)
International Expansion
Recommendations
Competitor Analysis
SWOT Analysis
• The beginning of consumer digital camera era
1995, Casio QV-10
Industry Analysis
• The becoming of mainstream product
• Pocket-size and fashionable
• Matured digital camera industry
Industry Analysis
• SLR digital camera & Ultrathin digital camera
2005,Sony T7
2003, Nikon D70
Industry Analysis
• Fierce competition between camera makers
Industry Analysis
• The designs of the digital cameras become more classic and stylish.
• A higher level of face detection technology and intelligent scene recognition technology make shooting easier.
The Tendency of Digital Camera Industry:
Industry Analysis
• Third, the use of touch-screen
Industry Analysis
The Tendency of Digital Camera Industry:
Sony
T300
Company Analysis
• In 1945, Masaru Ibuka and Akio Morita, Tokyo Telecommunications Engineering Corporation
• In 1958, New Name
• First electronic camera, Mavica, in 1981
magnetic recording , embryonic form
History
Current
•Leader
•Digital cameras, recorded music, PC
•The headquartered is in Tokyo
•2007, Revenue increased 10.5%
•Increasing sales in the electronics and games
•Cyber-Shot
•NO.2 digital camera
Company Analysis
Future
• 1.8 million Japanese Yen
• Facilitate the customization service
Company Analysis
International Expansion
• 1960 - America
• 1980 - Sony Euro Switzerland
UK
Germany
France
• 1996 - China
- most important
- large potential
Expansion in electronic field
Horizontal Global Expansion
Entertainment
• Sony Music Entertainment
- founded by Sony and CBS in 1968
• Sony Pictures Entertainment
- took over Columbia TriStar Motion Picture Group in 1989
- subsidiaries in Hong Kong, Madrid
- merged with MGM in 2004
- the largest film company
International Expansion
Global Expansion Strategy
Globalization
All the branches in
the world share the
same technology and
company culture.
International Expansion
Localization
• In operation: localized R&D, procurement, production,
distribution and sale
• In talent: invests the local talents
Make overseas R&D center
• The importance
• Advantages:
- the cycle of R&D shortened
- make better use the talents and capital all of the world
- cross-border collaboration
International Expansion
Digital CameraDigital Camera
• Manufactory:
- produced not only in Japan but other Asian countries
(Premier Image Technology &Abco)
- cooperation with Carl Zeiss AG,
(a German manufacturer)
International Expansion
• Marketing:
the market share of Sony
In China, Sony is the leader in this market
area Sony Other Brands
U.S. 37% 63%
Europe 12% 78%
International Expansion
Challenges
• The continuous price reduction
- the brand image
- lead to a shortage of capital
• The image of Sony is too complicated
- In India, SPE
- In Japan, an electronic company
- In U.S., an Entertainment company
International Expansion
Sony’s main competitors include
Canon, Nikon, Kodak, Samsung, and
Panasonic.
Competitor Analysis
Canon
• Strong technical strength and marketing ability
• Produces the best cameras for shooting portraits
• Relies on its brand recognition
• The number one company in the digital camera industry
• Not as fashionable as Sony’s
Competitor Analysis
Nikon
• High-end consumer digital camera market
• No self-produced CCD (Charge-coupled device, an electronic
light sensor used in digital cameras )
• Top-ranking SLR digital cameras
• Not well accepted by low-end market users
Competitor Analysis
Kodak
• Boring color
• Appearances are less prominent
• Quit the digital camera industry on August 1, 2006
• Wrong decision in 2006
Competitor Analysis
Samsung
• Strong capability in electronic technology
• Slim appearance and colorful design
• Shortage of core technologies
Competitor Analysis
Panasonic
• Develops its own CCD sensor device
• The leader of electronic products
• Weak fundamental of optical technology
• Higher prices
Competitor Analysis
SWOT Analysis
• Brand image: new and high quality, CCDs
• Global operations: 204 countries. Sales(2007): US(26.9%), Japan(25.6%),Europe(26.6%). Global producing ability: Japan(50%).
• Professional design and R&D team. Survey: 30% customers; Technology
Strengths
Weaknesses
• SG&A expenses. Operating profits 69.3% (2007)
• Legal proceedings. In 2004, Eastman Kodak VS Sony for 10 patents.
• Not easy to operate. Survey: 24% customers.
SWOT Analysis
Opportunities
• Business reorganization: $1.2 billion and $0.3 billion in 2006 and 2007.
• Partnership with FIFA (Federation International de Football Association), 2007,8,40,2
SWOT Analysis
Threats
• Integration of alliances and joint ventures.
S-LCD(Samsung) 2004. SONY BMG
(Bertelsmann)
Cultures and Interest Conflicts.
• Raw material prices. $350 (2008).
• Intense competition.
SWOT Analysis
Recommendations
• Do not make use of Memory Stick
Short term
• To expand in the luxury business
• To contribute to the environment protection
• Value-added activities on value chain.
- market research
- sourcing
- production
- marketing
- after-sales service
• Intellectual property rights & high-tech talent, Suit
Long term
Recommendations