What are the common strategy mistakes of Sony? Essay

Howard Stringer was mentioning that how they were expecting of Sony’s growth and increase in annual earnings. As Stringer continued to his interview we saw that how things resulted for Sony and in what way Sony was effected. Sony’s decline started with earthquake and tsunami that hit eastern Japan and made life miserable for the company. Suddenly dark days begun for company, earthquake and tsunami caused to shut down 10 plants, operating profit decreased, global economy caused to decrease earnings and a warehouse burned during in London riots.

However strategic mistakes worsened company’s situation and made company to fall back against their competitors. Once Sony was the leader of electronic industry, they invented the Sony Walkman and sold millions of it. But Sony thought that they will continue being leaders and sustaining the same technology for years which I believe was the Sony’s big mistake. When internet begun and digital age begin to grow new technologies were inventing and new trend was that getting people to connect each other.

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At this stage IPods, smart phones and tablet pc’s became the most desirable technology by consumers, and technology giant Sony was late to produce these technologies. Even the TV business of Sony which was known for the best quality and technology, started losing money because of inventing new technologies late while other competitors invented flat screen TVs and changed the industry. And yet Sony is trying to catch the internet age.

However I believe that technology giant Sony have enough resources to cope with their competitors and I would like to suggest that Sony would gain their old glory by following offensive strategy by inventing new techs on and on in order to restore their market share and sustain their competitiveness. The company yet remains big manufacturer with 2000 products and a senior analyst called Jeff Loff points out that Sony sells 9 different 46-inch TV models in the U. S, which he says how hard it would be for Sony’s R&D to function.

I believe that Sony could focus more unique featured TV’s and decrease the number of different units in order to decrease operation and manufacturing costs. Sony’s another mistake was that in early years while company were introducing brand new products, Sony was charging high prices than competitors because of the quality, style and technical capability of their products. However, company made billions of dollars. But they made a mistake by behaving as they will never be challenged by competitors and will remain superior than competitors. Which lead the Sony to a different direction and made themselves fallen behind their competitors.

When Nintendo released Sony saw it as a niche market product but later Nintendo became the hit and the best selling console game worldwide. And Sony’s product which is PlayStation 3 is in third place. Result was Sony lost their market share to Nintendo. Another big mistake was that they couldn’t manage to develop their IPod, company had all the resources, even a record company but still they couldn’t manage it. The reason of failure was that company was divided into parts which every part had their own bottom line and it was hard for executives to merge the divisions to work together, almost impossible for divisions to work together.

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