Sony v IPod Essay Example

hardware is easily produced, a company may desire a proprietary approach to protect their ideas built in to software. 2.

Why was Sony slower at going digital than it's stated strategy and aspirations loud suggest? Internal The first internal reason is since Sony had a significant investment and compete dative edge before 1 997, it formed a kind of monopoly in digital music market.

Thus, Sony believe e that this monopoly would hang on inhibited the pod opening. The second reason is the at Sony company's longer tendency to avoid industry in favor of creating products they could own. The third reason is that Sonny's strategy is not understandable and reasonable.

For ex.

ample, in the fall of 1 999, Sony introduced two digital music player two music flawed players create De by two fiercely independent silos, which confused the market as well as the Sony organization n. Last but not least, Sonny's digital convergence was turned out being a failure because Of the failure of its own strategy. Case in point, the price in that time was too high for general consume errs that is why it MAGGOTS - Sony Versus Pod 2 of 5 stimulated the development of piracy and freeloading, which preoccupied a part of the market.

External Sony missed out on the pod was that silos paralyzed it at exact wrong time in stead of lack of innovation. In addition, regardless of how bad the marketing strategy of Soon s, it is fact that piracy and freeloading preoccupied the market.

3. The holy grail of consumer electronics is digital convergence, to own the digital command center. Do you agree that owning

content, movies, music, and TV s wows is a big advantage in that race? Yes, we can't say it is not a good idea because of the Sonny's failure. In fact, eve rye big company does the same way like Sony does.

Case in point, Microsoft established an lee isotonic platform to meet consumers from different areas, such as Oxbow, computer, Windows pooh nee and so on.

And it try to integrate consumers information into an account to cultivate their pre Renee. Another example is Apple, they pushed out tunes as a shop to provide music and AP P downloaded. Thus, there are several advantages for Sony to rebuild digital convergence. Fir SST of all, to cue Titivated consumers' habits is very important for a company to expand other products, namely products development.

Secondly, digital can improve the loyalty of consumer s on their products and brand.

Thirdly, when a part of consumers get to use the products, they WI II introduce it to their friends and relatives, like if you want to chat with your friends on Facets me, you should erasure your friends to buy a Apple product, which is helpful to expand mar get development. Off 4. Why did two competing Sony products get into the market at the same time? There were three silos and they were operating independently with little communication: Sony Personal Audio Company, the AVIVA Company and Sony Music.

The first two of those developed two music players two years before the Apple Pip d. How could that happen? How could it be prevented? The silo culture within Sony prevented communication and collaboration that could have brought competition

for the pod. These divisions worked independently Off ACH other when hey could have collaborated to prevent losing out in the market.

Would it happen in another company? Of course, companies that buy out other companies or desire to make subside Aries need to look at the overall picture and provide communication (as much as legally POS Siebel) to ensure that there is not redundancy.

If redundancy or complementary effort is being done between these silos, they need to look at either enhancing communication and/ or consolidating the different silos. 5. What should Sony have done to correct the silo problem? The first thing Sony should do is to aware that they are not monopoly in digital entertainment any more, they need to learn how to cooperate with other com petitions in this field, such as Apple. Since more and more people use to buy Apple products, it is h rd for Sony to create their own products to compete it.

If Sony insist to invest in a product a ND try defend Apple, it would be very risky. Thus, the wiser way to deal with it is to development pr ducts to cater to off the consumers who are using Apple products instead of changing their habit s. Meanwhile, doing marketing research can effectively find the weaknesses of Apple products, an d try develop new products to meet consumers' needs. How could Sony Music have been motivated to be a helpful member of the et am?