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 B 300 B – Business Behaviour in Changing World (II) Second Semester 2011 -2012 Answer Q1: Under the leadership of its new executive management team established in this year 2012, Sony current strategy has reformed its organizational structure in orde

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مُساهمةموضوع: B 300 B – Business Behaviour in Changing World (II) Second Semester 2011 -2012 Answer Q1: Under the leadership of its new executive management team established in this year 2012, Sony current strategy has reformed its organizational structure in orde   الإثنين مارس 09, 2015 11:34 pm

B 300 B – Business Behaviour in Changing World (II)

Second Semester 2011 -2012



Answer Q1:

Under the leadership of its new executive management team established in this year 2012, Sony current strategy has reformed its organizational structure in order to bolster profitability and transform its operations, with the aim of accelerating innovation and growth and optimizing business processes, The current strategy of Sony focus on digital imaging, game and mobile as the three main areas of its electronics business and plans to concentrate on investment and technology development resources in these areas.

Sony current strategy is reinforcing its development of image sensors, signal processing technologies, lenses and other key digital imaging technologies in which it excels, and plans to leverage these technologies in both its consumer products (such as compact digital still cameras, digital video cameras and interchangeable lens digital cameras)

In the game business, the company current strategy also aims to increase sales by enriching its catalog of downloadable game titles and subscription services available through the PSN platform, and also by expanding the lineup of PlayStation Suite compatible devices and content.

In the area of mobile, Sony current strategy aims to integrating the R&D, design engineering, and sales and marketing operations of its Smartphone business (operated by Sony Mobile Communications, now a wholly-owned subsidiary of Sony), Sony also plans to aggressively leverage its many technologies in areas such as digital imaging and game, its rich content assets including pictures, music and game, its "Sony Entertainment Network" network service platform, Sony current strategy aims to achieve further efficiencies and optimization. As a result of these measures, Sony will target sales of 1.8 trillion yen from the mobile business, and significant profitability improvement in this year.

Currently, Sony is already engaged in a comprehensive television profitability improvement plan (announced November 2, 2011), which aims to return the television business to profitability in the fiscal year ending March 31, 2014 and intends to accelerate these measures going forward. The sale of Sony's share in its LCD panel manufacturing joint venture with Samsung Electronics has been completed, resulting in panel-related cost reductions. additionally, Sony current strategy is taking further measures to change the business structure, for example by improving design engineering efficiency and reducing the number of product models (targeting a 40% reduction from the fiscal year ended March 31, 2012 to the fiscal year ending March 31, 2013), with the aim of reducing fixed business costs related to the television business by 60% and operating costs by 30%.

Answer Q2:

As a market challenger there are a number of options available to Sony in order to compete and regain its market share. Market challengers however must have a sustainable competitive advantage for which to compete on. this can be innovation, reduced costs or perceived superior performance, rather than actual performance or product attributes in terms of quality and durability. Sony will just have to decide and focus on its competitive advantage perhaps through using models such as Porter’s generic strategies, where companies can compete on a cost leadership basis .Sony is more likely to focus on differentiation strategy due to escalating costs which will take time to lower. Sony had positioned themselves with a differentiation strategy which seeks to provide products or services that offer benefit different from those competitors and that are widely valued by buyers.
on the other hand sony achieved revenue exceed the prevailing yield in the sector and strengthen the defense capability of the company to meet the competitors through the commitment by the staff of the company to maintain excellence and apply all the improvements and ideas proposed.

Sony also implement a related diversification strategy which involve adding businesses whose value chains possess competitively valuable strategic fits with the value chain of the company’s present business. related diversification among the different businesses provides Sony with sharper focus for managing diversification and it is a useful degree of strategic unity across the company’s various business activities also argue that (it is the combination of resources that delivers competitive advantage, because such a combination takes years to develop and is therefore difficult for others to copy). most of sony diversification into new areas of business was through joint ventures with foreign companies .Sony and Samsung have ended their LCD joint venture established in 2004. samsung will acquire all of Sony 50 percent share for 1.08 trillion won (about $938.97 million) and convert the joint venture into a wholly-owned subsidiary. sony enters into a strategic relationship with samsung that secures a steady supply of LCD panels based on market prices and without the burden of operating a manufacturing facility. The deal is expected to close by January of 2012 subject to regulatory approvals.



The Sony Computer Entertainment Europe product division is undoubtedly pursuing a focus strategy wholly within the larger electronics scope of the Sony Corporation. a focus strategy can be defined as an organization concentrating its resources on the pursuit of a relatively narrow market segment and is most effective when the organization has expertise in the segment and has the ability to competitively meet the needs of the segment. This strategy is one of Porter’s generic strategies and it represents a bold gamble on the ability of an organization to live up to expectations and place all (or at least most) of its eggs in one basket.
Sony outlined its new strategy for turning the once huge electronics company around today. In a press release, the company said it would be focusing its energies on three main areas of its business:

One is digital imaging, which includes its cameras and video recorders another is the gaming space, which includes its Playstation division. finally it will put its energies into improving its mobile technology subsidiaries. that includes its Xperia smartphones, its tablet business and its VAIO notebook division. even with this change in strategy, Sony says it is still committed to its television division and plans to return that business to profitability. It will also launch new businesses that will include developing new medical technology, electric car batteries and "4K" televisions, which have four times the amount of resolution as today's current HD picture.

Sony is focusing on the development of its sales, profits or share of market and include the following:
Enhancing Semiconductor Business:
Semiconductors are key devices for adding value in order to differentiate products. Sony will continue to apply its unique and leading-edge technologies in this field to enhance the competitiveness of its products. R&D for system LSIs and imaging devices key to electronics products will be energetically promoted. Advanced semiconductor process technology and DRAM-embedding technology will be pursued and the development and investment in processors will continue. In CCDs, where Sony maintains a high market share, efforts will be made to balance external and internal sales, thus reinforcing competitiveness and securing profitability.

creating new product categories through Integration of game and electronics technology:
PSP will mark the beginning of a new series of products that will unite the most advanced electronics devices with the leading-edge semiconductor technology associated with the Game sector. these products will create a new market based on a massive integrated platform where customers can enjoy the latest content (game, pictures ,music etc).

Audio-Visual is a core business category, and here Sony will create a vertically integrated structure through the application of mechatronics and Sony key devices which will result in high added value and product differentiation. this will in turn realize high and sustained profitability. the shift of resources to growth areas like Flat Panel Displays, Optical Disk/HDD Recorders and digital imaging equipment will be accelerated. at the same time added value will be promoted through the application of broadband capability and key devices will increasingly be produced within Sony.

Answer Q3:

The diamond model created by Michael Porter for the competitive advantage of nations offers a model that can help to understand the competitive position of a nation in global competition and the application of the model also extends to be used for other geographic region, the porter’s diamond model determines factors of national advantage and it suggests that the national home base of an organization plays an important role in shaping the extent to which it is likely to achieve advantage on a global scale and this home base provides basic factors, which support or hinder organizations from building advantages in global competition. porter diamond forces have been referred to as being one of the most recent theories that explains the international competitiveness of countries.

Factor Condition:

Since its establishment in 1946 Sony has sought to remain at the forefront of technological development, building continuously on its achievements to create new lifestyles for people everywhere. Sony has also fostered groundbreaking new businesses, adopting an innovative approach to this challenge that exceeds national and regional boundaries. In these efforts Sony recognizes its employees to be one of the most crucial aspects of its corporate foundation. Sony acknowledges that its ongoing ability to offer dream-inspiring products and services and exciting new lifestyles around the world depends on its ability to secure and foster talented employees with a wide range of values and personalities, irrespective of nationality, culture, race, gender, age, or the presence or absence of physical limitations


Demand conditions:
According to Porter demand conditions in a country are also perceived as a source of competitive advantage for a country and demand as a factor explaining trade is not new. Porter has focused on demand difference than on similarities to explain the international competitiveness of countries and according to Porter it is not only the size of the home that matters, but also the sophistication of home country buyers ,in short it’s the home demand that shapes how firms perceive, interpret and respond to buyer’s needs. Porter has regarded the essential conditions of demand as being a home demand that anticipates and leads international demand, industry segments with a significant share of home demand condition and sophisticated and demanding buyers the explanation of demand condition is that the more the demanding the customer in an economy, the greater the pressure facing firms to constantly improve their competitiveness via innovative products, through high quality etc. responding to consumer demand, Sony has restocked the 60GB PlayStation 3 online. the $599 80GB PS3 bundle may be reduced down to $499 once the complete supply of the 60GB version dries up.


Firm strategy, structure and rivalry:
According to Porter the main emphasis of firm strategy, structure and rivalry is that the strategies and structures of firms depend heavily on the national environment and that there are systematic differences in business sectors in different countries that determine the way in which firms compete in each country and ultimately their competitive advantage and Porter identified rivalry as the most critical driver of competitive advantage firms as he believed that domestic rivalry forces firms to be cost competitive, to improve quality and to be innovative. the rivalry between the Xbox 360 and the PlayStation 3 is just the latest battle in the exciting leadership war that began in 2001, when Microsoft introduced the original Xbox into the console market. the PlayStation was the reigning champion of the console market. It had dominated since the mid-90s. The original PlayStation sold some hundred million units, a staggering figure at that time.

Related and supported industries:
the explanation of related and supported industry is “The existence or non-existence of internationally competitive supplying industries and supporting industries .according to Porter he has claimed in his theory that specialization leads to the sticky location advantage that are the true sources of sustainable competitive advantage of countries. While explaining his theories Porter has claimed that it is the external economies of related and support industry clusters, such as networks of specialized input providers, institutions and spill-over effects of local rivalry that became the true source of competitive advantage.

Answer Q 4:
Chapter 8 National systems of innovation
This chapter talk about the concept of national innovation systems (NIS) which appears to be an attractive idea on the grounds of policymaking, as it is expected to provide straightforward measures to boost a state’s competitive advantage. the study forms the basis for a question of NIS transferability and adaptability, and it demonstrates considerable limitations of the NIS emulation in different environments and economic settings,pointing to the evolutionary and country-specific characteristics of the innovation system.

The concept of national innovation systems was almost simultaneously formulated in the 1980s by Christopher Freeman and followed by other scholars, such as Richard Nelson (1993) and Charles Edquist (1999) among others. nowadays, science and technology are understood in the context of the innovation system, which means that there are many related actors and the development and utilization of science and technology take place through complex processes. moreover, innovation has started to receive more attention than just science and technology. Still, science and technology remains the key to innovation. But, innovation is a results-oriented concept. It assumes that good science and technology automatically lead to good innovation. It also assumes that something more (like marketing, commercializing, financing) is needed to make good science and technology real innovation in the world.

The rise of specialised research and development of the firm contributes to the management of product development by highlighting how different functional and integrative capabilities affect process efficiency and product effectiveness. Success in product development is a critical management issue for the modern firm, especially those in technology driven industries. Clearer understanding of the factors that drive product outcome can help a firm focus on valuable R&D resources and better utilize resources dedicated to the product delivery process and increase the market demand for a firm's new products.

The rise of specialized Research and Development (R&D) leads to increase the availability of scientific and technical information in
developing countries. it leads also to:
• reinforce the capacity of developing countries to participate in the
global knowledge economy.
• support researchers in developing countries in creating and
developing new solutions to technical challenges faced on a local
and global level. access to scholarly literature is critical to the innovation process, as it represents an important source of scientific and technical
knowledge and thus complements the information contained in patent
documents. particularly in fields such as biotechnology and organic chemistry, much of the most recent and relevant information is contained in science journals and similar publications, which are therefore indispensable for understanding the current state of the art.

References:
http://www.flatpanelshd.com/news.php?subaction=showfull&id=1329393118
Benson, M. (8th November 2006), “Has the sun set on Sony? - [Available at http://www.wonova.com/11/2006/has-the-sun-set-on-sony/ ]
“Sony boss 'to put consumer first” (24th March 2005) - [Available at http://news.bbc.co.uk/1/hi/business/4378665.stm ]
“PlayStation 3 Euro launch delayed” (6th September 2006) - [Available at http://news.bbc.co.uk/1/hi/technology/5319190.stm ]

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B 300 B – Business Behaviour in Changing World (II) Second Semester 2011 -2012 Answer Q1: Under the leadership of its new executive management team established in this year 2012, Sony current strategy has reformed its organizational structure in orde
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