Sony Corporation

Case Study
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In this presentation, the competencies & strategies of Sony Corp has been mapped with three prominent Marketing theories - Schumpeter's theory of "Creative Destruction", Michael Porter's "Generic Theories" and Michael Porter's "Five Competitive Forces Theory".


However, in 1942 he modified his theory stating that innovation 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 given that the organization spends heavily in R&D across all the product lines. As per statement released in 2003 by Nobuyuki Idei, Chairman & CEO of Sony Corporation, the organization planned to spend 500 billion 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, 2005]
Sony has been practicing creative destruction by forcing the old available products towards obsolescence by virtue of their innovations. One excellent example is the "style" innovation of Sony latest Pocket Style VAIO P that is expected to yet again create a new niche segment for Sony that may force laptops to obsolescence especially in applications like Internet usage, word processing, multi-media & entertainment, messaging, Internet based telephony, etc. [Prokaza, Julian. 2009]
Sony practices the strategy of Differentiation Strategy thus targeting niche markets where products are unique and sold at premium rat ...
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