- Why did Sony push back introduction of the OLED television? What was the advantage in waiting? What were the drawbacks? Was there a threat of moving to market with new technology too fast? How might the delayed introduction affect Sony’s reputation among consumers, enthusiasts, and Sony’s own R&D personnel?
Sony pushed back the introduction of the OLED television because the cost of producing it is quite high which would mean a high price for the product which might not be acceptable to the consumers, especially if they have the option of purchasing a bigger LCD television at a lower cost. Moreover, Sony had to iron out some operational and supply chain challenges in introducing the product . The advantage of waiting is that it gives Sony time to further improve the product. The drawback is that if the OLED is not introduced immediately, other competitors might introduce a similar product in the market even before Sony does. The threat of moving to market with new technology too fast is that the product might still need to be fine tuned. If it is introduced in the market immediately, competitors will get to study it and try to find ways on how to improve the product then introduce a better version. The delay in the introduction will affect Sony’s reputation as an innovation leader. Consumers will no longer perceive Sony as the leader in technology. Consumers will also think that Sony is not yet 100% sure of the new technology that it is going to introduce. Among Sony’s own R&D personnel, they realized that Sony wanted to bring back its glory days in the television market by making sure that the OLED is a quality product that will bring in profits.
- What competitive threats does Sony face? From which companies and geographic regions? How does Sony stack up against these competitors?
The competitive threats that Sony faces are the technological innovations of its competitors. The R&D departments of its competitors are working overtime to come up with the latest technological advancements in the electronics industry. Another threat facing Sony are the low-cost manufacturers from China and South Korea which can also produce high quality products. The major competitors of Sony are Samsung and LG from Korea and Apple from the United States. Sony stacks up against these competitors by trying to lower its manufacturing costs, cutting down the number of suppliers, reducing the number of its plants and workforce and by merging and reorganizing several of its divisions.
- Is it possible for a diversified company like Sony to be an innovation leader and stay profitable? What does its recent company performance suggest?
Yes, it is possible for Sony to be an innovation leader and still be profitable if it has the right strategy in place. Its recent company performance suggests however, that Sonny has failed to become an innovation leader because of its diversified product line and business. Its financial picture also suggests that it has failed to adapt to the changing times and the challenges presented by the globalization of the industry.
- Should Sony’s R&D efforts be focused on a limited number of “core” products or should it aim to be an innovation leader in each single business sub-segment that it has? Do you think that Sony should subsidize the unsuccessful R&D efforts that produce products which do not turn profits?
One thinks that Sony’s R&D efforts should be focused on a limited number of “core” products rather than aim to be an innovation leader in each single business segment that it has. Yes, Sony should subsidize the unsuccessful R&D efforts that produce products which do not turn profits because if they do not, their technical people might no longer try to develop new products. Their creativity and innovativeness might be stalled for fear of generating losses for the company, which will greatly affect Sony’s reputation of being a product innovator.
- Do you think excessive diversification is Sony’s problem? Do you think the problem is that Sony’s products are targeting the upscale high-income consumer group, when most consumers are looking for cheap affordable goods? Why or why not?
Excessive diversification is just one of Sony’s problems. Another problem is its complacency and its failure to “read” the market. Most of Sony’s products are targeted to high-income consumer groups which is also one reason in the decline of its sales. With the fast pace of technology and the highly competitive nature of the market, Sony should try to develop products which will also appeal to the mass market especially during a financial or economic crisis in a country. Consumers today prefer value for money since there are many alternatives offered by the market.
References
(n.d.). Can Sony regain its competitive edge? The OLED project.
