Sony Corporation Case Study Example | Topics and Well Written Essays - 1000 words

Sony Corporation - Case Study ExampleHowever, in 1942 he modified his theory stating that existence can no longer be the realm of individual entrepreneurs due to the gradually building capitalism rather shall be the forte of innovation professionals & laboratories controlled by management of large companies Dejardin, Marcus. 2000. This theory applies to Sony considerably wedded that the organization spends heavily in R&D across all the product lines. As per debate released in 2003 by Nobuyuki Idei, Chairman & CEO of Sony Corporation, the organization planned to spend 500 meg Yens (about 5.1 billion US Dollars as per current rate) in three years to develop competitive key electronic devices through internal innovations although the organization invested 502 billion Yens (about 5.12 billion US Dollars) in 2005 itself. Sony Corporation, 2003 Sony Corporation, 2005Sony has been practicing creative destruction by forcing the old available products towards obsolescence by celibacy of their innovations. One excellent example is the style innovation of Sony in vogue(p) Pocket Style VAIO P that is expected to yet again create a new time out segment for Sony that may force laptops to obsolescence especially in applications like Internet usage, word processing, multi-media & entertainment, messaging, Internet found telephony, etc. Prokaza, Julian. 2009Sony practices the strategy of Differentiation Strategy thus targeting niche markets where products are peculiar and sold at premium rates. They tend to develop unique market segments where there arent any competitions and the pricing strategies are on the whole in their own control. Walkman, Play Station, and now the Pocket Style Vaio P are examples of product uniqueness that Sony brings to the market. In these markets Sony is not bogged down by competition that practice Cost Leadership strategy.Sonys strategies against Porters Five agonistic ForcesFollowing is the toughie of Porters Five Competitive Forces Har vard Business Review, 2008 Cliff, Bowman. 2008 Ankli, Robert E. 1992Sony practices product uniqueness (differentiation) and achieves the same by virtue of huge investments in Innovation and R&D. This strategy ensures that Sony is well placed when mapped against the Porters five competitive forces model as presented belowThreat of new entrants and substitute products & services Sonys strategy of continuously developing unique products and market segments keeps them shielded from new entrants in the market given that the level of R&D need to develop such products is huge and not easy for competition to introduce substitute products. Rivalry among breathing competitors Sony hardly has any rivalry with competitors because their products are already priced at premium rates even in the market segments that are not unique to them. In