past couple of years with a series of divestitures within some of the peripheral operations. Sony is continuing overhaul some of its core businesses after failing to turnaround two of its most troubled consumer electronics business, by selling its Vaio branded PC unit and spinning off its television business into a separate subsidiary to focus on highly specialized TVs while scaling back output of cheaper models. However during the first quarter of this year, the story was a little different
Earlier, it is discussed that the strategy employed by Samsung is actually a differentiation strategy, with such characteristics: a focus on excellent, paying attention to quality, emphasizing on product innovation, through continuous improvement process, while not neglecting the continuous to keep lean. Then, many of such strategies were enabled by the management attention to build the critical resources, such as economies of scale, economies of scope, strong corporate culture and even internal capabilities to manufacture. In the past and as had been discussed earlier, as Samsung had successfully build valuable, hardly imitable and unique resources; that successfully allow the company to eventually gain the core competency to penetrate the global smartphone industry (to beat over Nokia, Sony, and in competing effectively with the once dominant industry player, i.e., Apple Computer).
Corporate Global Strategy Of Sony Corporation Management …
Stringer initially created a sense of urgency in the organization as soon as he became the CEO. He closed 11 of Sony’s plants and laid off 10,000 employees to create the sense of urgency. Now he was ready to move in to bring the change. He focussed on the core competencies and reduced the structural hierarchy and changed the leadership style. This made the overall business process speedy and thus saved immense resources.
Reasons for suffering wearout 1)The internal culture and core rigidities of Sony ?In their own success, Sony created a problem for themselves – resisting changing, and failing to recognize that changes were happening rapidly. All core competencies have the potential to become core rigidities (?? ). Core rigidities inhibit Sony’s ability to access and develop new capabilities, and it prevents Sony from responding appropriately to changes, in particular the rapid changes in technology, thus losing their competitiveness. ?The culture for Sony appears to be product focused rather than market focused.However, business diversification into movies, music and financial services finds it difficult to move with the times. The purpose of diversifying into other business is to complement the current core business. Sony may lose sight of its core business and their unique competitive advantage when extending over many other industries. ?Doubtful positioning: Sony is claiming benefit that customers will doubt that the brand can actually deliver, such as the Sony Ericsson phone and moving into LCD televisions. In addition, Sony is seen as difficult to develop technologically superior products. ? 2. Strategy Recommendations Generally speaking, Sony need to realize value migration that focuses on the task of discerning what customer needs are and then developing a new product or adapting an ole product that will meet those needs. This approach makes it possible to anticipate changes in the needs and wants of customers and be prepared to meet those needs as they arise. In the process, the company is able to shift or migrate to a new way of doing business.This way, it is possible to stay ahead of competitors, and sometimes seizing first mover advantage and creating a presence before other begin to notice a newly developing business opportunities. 1)Business level strategy Porter’s Generic Strategies are being used to illustrate what is Sony’s competitive stance and its positioning in consumer’s mind. ?Differentiation Strategy Though issues exist in Sony, the company still has several core competencies in the value chain which they could utilize to further gain competitive advantage over its competitors. One core competency is their supply chain management, which links to their ability to maintain a steady stream of high quality materials coming in for production because of their long-term good standing with their material suppliers.The highly coordinated logistics system handled by outsourced firms also form part of their core competencies, leading to excellent inventory management and always on schedule production activities. ?Another core competency is their ability at operation – the moving assembly line. They are able to get ahead of the competitors manufacturing process. Moreover, Sony’s has competitive technological advantage over emerging IT firms that are moving into the consumer electronic arena. Though Sony is lagging behind its competitors in launching new products, the company has already realized it and focused on expanding its PC, Blu-ray Disc-related products, media stations into core businesses.