Current Technological Advancement of Sony - Case Study Example

Sony launched its mobile value network operator (MVNO) project to improve its competitive advantage. A critical analysis of this project discloses various value drivers as well as cost drivers. Tawfik and Enders define value created as the difference between alleged use-value which is positively influenced by value drivers, and real costs increased by cost drivers. The use of UMTS technology and handset, applications that promote interaction and individualization are seen to promote the quality of the products, with UMTS technology also advancing speed and thus improving value. The implementation of the project comes together with some extra cost. However, it is worth noting that the increase in value is still larger than the increase in cost. For this reason, Sony focused on capturing the value e which calls off for a wise tradeoff between consumer surplus and producer surplus; given that the company does not operate in a monopolistic market. Moreover, following the advancement in Sony’s operation with time, there is a need t to include in the case study some other operations such as virtual payment fees which Sony has recently introduced to capture the real value of their products.