Marketing Management

Strategic management: Sony's Perspective

Strategic management: Sony's Perspective

Reasons for Continually Introducing Products

Following are the different reasons regarding why Sony keep on introducing new products and or services while at the same time improving existing products within its product portfolio;

Diversified product/service offering and geographic base

Sony is diversified in terms of its product/service offerings and geographic base. The group operates through seven segments, each of which offers a wide range of products and services. CPS segment offers products such as televisions, home audio and video, digital imaging, personal and mobile products, and gaming devices. PDS segment offers professional solutions, semiconductors and components. Through the financial services segment, Sony offers services such as insurance, savings and loans. The pictures segment produces content for the internet and mobile devices, movies, theatrical motion pictures, TV shows, and animation and other programming. The music segment produces and distributes recorded music and music videos. Sony Mobile segment develops and markets mobile phones, accessories and applications. Sony's other activities include its Blu-ray Disc, DVD and CD disc manufacturing business, and OEM business (Braun & Latham, 2012, pp. 13-21). At the end of FY2012, the group generated 47.5% of its revenues from CPS, 15% from PDS, 13.5% from financial services, 10.2% from pictures, 6.7% from music, 1.2% from Sony Mobile, and 5.9% from all other.

Sony markets its electronics products and services in around 200 countries and territories. Sony generates significant revenues from each of these regions. For instance, at the end of FY2012, the group generated 32.4% of its from Japan, 19.5% from Europe, 18.7% from the US, 9.8% from Asia-Pacific, 7.6% from China, and 12% from other areas (such as UAE, Mexico, and Canada). In addition, Sony's SPE (a subsidiary engaged in motion picture related activities) distributes entertainment in more than 159 countries. Diversified product/service offering and geographic base of the group proves to be its strength as it aids Sony in catering to different markets and minimizes risks of being dependent on a single geographic area or segment for revenues (Pellegrin-Bouchar, et. al., 2013, pp. 71-89).

Focus On Research and Development

Sony maintains strong focus on research and development (R&D) activities as part of its strategy for extending existing brands and introducing new ones. The group spent approximately JPY433.5 billion ($5.5 billion) on R&D activities in FY2012, an increase of 1.6% over the previous year. The ratio of R&D costs to sales (excluding financial services segment revenue) increased from 6.7% in FY2011 to 7.7% in FY2012. The group's R&D activities are focused on four key areas: home and mobile electronics, and semiconductor, device, and software technologies. Focus on these four key areas enables the group to create value-added products. The strong focus on R&D helped the group to launch innovative products in the market. For instance, in August 2011, Sony launched HMZ-T1 "Personal 3D Viewer," the world's first consumer-use device to incorporate HD OLED displays. In September 2011, the group launched "Walkman" Z Series of digital music players, equipped with advanced sound-enhancing technologies, including the proprietary S-Master ...