You are on page 1of 32

Xu,Xiaoxuan (Connie) Zhang,Yao (Stephanie) Liu,Zhenzi (Christina)

Nov.10th ,2008

Industry Analysis

Company Analysis

(History, Current, Future)

International Expansion Competitor Analysis SWOT Analysis Recommendations

Industry 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

2003, Nikon D70

Industry Analysis Fierce competition between camera makers


Market Share in the Digital Camera Industry, 2006
Canon
18.70% 31.50% 15.80% 7.60%

Sony Kodak Olympas Samsung Nikon

7.80%
8.60%

10%

Other

Industry Analysis The Tendency of Digital Camera Industry:

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.

Industry Analysis The Tendency of Digital Camera Industry: Third, the use of touch-screen

Company Analysis History

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

Company Analysis 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

International Expansion Expansion in electronic field

1960 - America 1980 - Sony Euro

Switzerland UK Germany France

1996 - China - most important - large potential

International Expansion 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

core technology

Globalization All the branches in the world share the

company philosophy key strategic markets

same technology and company culture.

International Expansion

Localization

In operation: localized R&D, procurement, production, distribution and sale In talent: invests the local talents The importance Advantages:
- the cycle of R&D shortened
- make better use the talents and capital all of the world - cross-border collaboration

Make overseas R&D center

International Expansion

Digital 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 area U.S. Europe Sony 37% 12% Other Brands 63% 78%

In China, Sony is the leader in this market

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

Competitor Analysis

Sonys main competitors include

Canon, Nikon, Kodak, Samsung, and


Panasonic.

Competitor Analysis Canon The number one company in the digital camera industry Strong technical strength and marketing ability Produces the best cameras for shooting portraits Not as fashionable as Sonys Relies on its brand recognition

Competitor Analysis

Nikon
Top-ranking SLR digital cameras

High-end consumer digital camera market Not well accepted by low-end market users
No self-produced CCD (Charge-coupled device, an electronic light sensor used in digital cameras )

Competitor Analysis Kodak Wrong decision in 2006 Boring color Appearances are less prominent Quit the digital camera industry on August 1, 2006

Competitor Analysis Samsung Slim appearance and colorful design Strong capability in electronic technology

Shortage of core technologies

Competitor Analysis Panasonic The leader of electronic products Develops its own CCD sensor device Weak fundamental of optical technology Higher prices

SWOT Analysis Strengths

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

SWOT Analysis 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.

Recommendations Short term

Do not make use of Memory Stick

To expand in the luxury business

Recommendations Long term

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

You might also like