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SONY CORPORATION Video-Game Industry PlayStation The Right Group Ernie Thorpe Hope Fitzgerald Retania Swapsy-Hayes Traci Stallings

SONY CORPORATION Video-Game Industry PlayStation

Dec 30, 2015




SONY CORPORATION Video-Game Industry PlayStation. The Right Group Ernie Thorpe Hope Fitzgerald Retania Swapsy-Hayes Traci Stallings. Purpose. Explore how Sony Corporation has produced creative disruption in the Video-game industry and sustained dominance. Overview Hypercompetition. - PowerPoint PPT Presentation
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  • SONY CORPORATIONVideo-Game IndustryPlayStation The Right GroupErnie ThorpeHope FitzgeraldRetania Swapsy-HayesTraci Stallings

  • PurposeExplore how Sony Corporation has produced creative disruption in the Video-game industry and sustained dominance.

    Overview Hypercompetition. Review Sony Corporate History.Introduce the Video-game industry.Corporate Analysis: Competing in 4 key arenas.

  • Overview of HypercompetitionIs The Era of Sustained Competition Dead?

    The hypercompetitive environment is an environment that is destructively aggressive, undeniably intense, and ingeniously creative. Traditional players doing conventional business as usual will soon experience destructive disruption in their industries as the twentieth century players change the rules with new business practices and untapped technology.

  • History1st Two Pioneers 1944IbukaMoritaDiscoveryCurrent Chairman and President N. OhgaN. Edei

  • How To Sustain Competitive Advantage in an Hypercompetitive Environment? Continual Advantage is the Key: Created



    Recreated through strategic maneuvering

  • Twentieth Century Firms Compete in 4 Major ArenasPrice/Quality.

    Timing and Know-how.


    Financial Resources.

  • The Guide for Market Disruption The 7 Ss are Stakeholder satisfactionStrategic soothsayingSpeedSurpriseSignalsShifting the rules of the marketSimultaneous or sequential thrusts

  • Electronics Industry Focus1972 Magnavox released the first home video game system The OdysseyMany home video game systems have come and gone while making and losing money in the process.Home video games systems have been seen as using cutting edge technology at times and at other times it has been seen as nothing more than a childs toyConsumers spend billions of dollars on home video game systems

  • AdvertisingPlayStation commercials are always fresh, quirky, weird, and different.Seem to be carefully crafted short films with true artistic value behind the commercial faade.They are often vibrant, innovative, and uplifting.Current ad campaignsFun Anyone? (U.K)Live in your world. Play in Ours. (U.S.A)

  • CustomersWomen 18 and older 26%6 to 17 year-old boys 21%Men age 18 and over 38%17% are players ages 50 and over

  • Why Play Games?Americans play video games for a variety of reasons: 87% for fun72% for a challenge42% for the interactive social experience36% because games provide a lot of entertainment value for the money

  • Market ShareNintendo GameCubeHas held a strong shareHolds 37% of the American market shareMicrosoft XboxGaining sharesHolds 20% of the American market shareSony PlayStation 2Currently #1 worldwideHolds 43% of American market share

  • U.S Market Share

  • Statement

    Hyper-Competition Sony Corporation

  • SWOT Analysis

    Isolate the key issues that will be important to the future of Sony

    Should be addressed by subsequent marketing strategy.

    There are four possible approaches

  • Minimize Weaknesses and Minimize Threats.

  • Maximize Strengths and OpportunitiesStrengthsStrong financial condition

    Brand name image/reputation


    Brand Equity

    Buying Power

    Serve additional Groups, make more kiddie Games

    OpportunitiesExpand their product line

    Become more internet based

    Take market share from rivals.

  • Minimize Weaknesses and ThreatsWeaknesses

    Does not have many weaknesses

    Take advantage of maximizing every opportunity available in the video game industry

    2-playered games

    Lack extensive internet capabilities


    Competitor, Microsoft, innovations of high-tech internet capabilities

    Microsoft and first-mover position.

    Sony is the leader and is favorable in the eyes of most game-playing consumers

    Sony must minimize the threat of technological advances

    Create more internet capabilities

  • Cost and QualityNintendos GamecubeCost and Quality: Low

    Product Advantages:


    Appealing design and small size.

    Nintendo is a game-only machine Bright, fast graphics and great sound The Product


    Kiddie machines. Younger-aged titles

  • PriceNintendosGamecube

    Advantage is price.

    Price: $99.00 (From original $149.00 in 2002)

    Less features- Lower prices.

    The Product

  • Cost and QualityMicrosofts XboxCost and Quality: High

    Product Advantages:

    Xbox is a PC without the monitor.Includes an 8-gigabyte hard disk. Only Game system with a built-in modemPowerful processor, graphic card and perfect DVD playing, Most advanced technology for the most advanced in games. The Product

    Concerns: Fewest games available

  • PriceMicrosofts Xbox

    Price: $179.00 (From original $299.00)

    High-quality and High-cost product Prices matches Sonys PlayStation.

    The Product

  • Cost and QualitySonys PlayStation

    Cost and Quality: High

    Product Advantages:

    CD based, so that means it can hold tons and tons of information.

    It is a 128-bit computer more powerful than a Pentium III.

    It can play DVD movies, decode digital TV, and surf the Internet for less than $400;

    offers a wide variety of games, great accessories and peripherals.

    The Product

    Only the PlayStation offers something for everyone, mom and dad too.

  • PriceSonys PlayStation

    Incredible lineup of Greatest Hits

    Delivers the best games for the best prices.

    Price: $179.00 (From original $299.00)

    CDs are cheap to make. Consumers pay less...

    PlayStation and the Xbox are priced the same.The Product

  • Cost and QualitySony PlayStation

    Microsoft XboxNintendo GamecubeHIGHCost and QualityLOWLOWHIGHPrice

  • Timing and Know-How SpeedSurpriseMarketing Know-How

  • StrongholdsPlayStation released in more than 100 countries worldwide.The Sony PlayStation 2 sales have been strongest in America, Europe, and Japan.Sonys 70 million unit sales in their strongholds:16.18 million units in Japan (including Asia)29.26 million units in North America24.56 million units in Europe

  • PositionBased mostly on product features and value added attachmentsCreated the best game system at the timeAdded value with network adapterBundled products to add valueCreated value added attachment EyeToyInteracts with PlayStation without controllersSold 400,000 units in 2003

  • Worldwide Position

  • Financial Resources

    Resources are used to make or purchase the latest technological advances or to monitor its competitors anywhere they compete, eliminating surprisesSony able to increase their branding in the market with introduction of PlaystationSony derives 20% of corporate revenues with Playstation console and games

  • Innovations

    Sony uses it core competencies to gain significant market share in video game industrySony consolidated sales for the year ended March 31, 2003 were $62.3 billion dollarsSales such as these creates barrier to new entrants

  • Deep PocketsSony able to secure and maintain place as leader in video game market while experiencing decrease in salesAble to divert money to R&D for semiconductors for use in future gaming businessDeep pockets allows Sony to outmaneuver opponents while maintaining place in the market

  • Strategic Intent

    Sony able to signal strategic intent by utilizing vast financial resources. These areas would include:Brand name that means quality and innovationExcellent marketingWide Distribution

  • ConclusionThe leader faces the challenge of knowing when and how to respond to the next revolution Sloan Management Review, 1999

  • Questions?