sony corporation commonly referred to as sony (1)

8/2/2019 Sony Corporation Commonly Referred to as Sony (1)

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0 Assignment

On

Strategic Marketing

Strategies Of Sony

Submitted to

DrParulTandonSubmitted by

SwapnaraniSamal


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1982 saw the launch of Sony's professional Betacam videotape format and the

collaborative Compact Disc (CD) format. In 1983 Sony introduced 90 mm micro

diskettes (better known as 3.5-inch (89 mm) floppy disks), which it had developedat a time when there were 4" floppy disks and a lot of variations from different

companies to replace the then on-going 5.25" floppy disks. Sony had great

success and the format became dominant; 3.5" floppy disks gradually became

obsolete as they were replaced by current media formats. In 1983 Sony launched

the MSX, a home computer system, and introduced the world (with their

counterpart Philips) to the Compact Disc (CD). In 1984 Sony launched the Discman

series which extended their Walkman brand to portable CD products. In 1985

Sony launched their Handycam products and the Video8 format. Video8 and thefollow-on hi-band Hi8 format became popular in the consumer camcorder

market. In 1987 Sony launched the 4 mm DAT or Digital Audio Tape as a new

digital audio tape standard.

In addition to developing consumer-based recording media, after the launch of

the CD Sony began development of commercially based recording media. In 1986

they launched Write-Once optical discs (WO) and in 1988 launched Magneto-

optical discs which were around 125MB size for the specific use of archival data

storage.[16]

In the early 1990s two high-density optical storage standards were being

developed: one was the MultiMedia Compact Disc (MMCD), backed by Philips and

Sony, and the other was the Super Density disc (SD), supported by Toshiba and

many others. Philips and Sony abandoned their MMCD format and agreed upon

Toshiba's SD format with only one modification based on MMCD technology,

vizEFMPlus. The unified disc format was called DVD which was marketed in 1997.


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Sony introduced the MiniDisc format in 1993 as an alternative to Philips DCC or

Digital Compact Cassette. Since the introduction of MiniDisc, Sony has attempted

to promote its own audio compression technologies under the ATRAC brand,

against the more widely used MP3. Until late 2004, Sony's Network Walkman line

of digital portable music players did not support the MP3 de facto standard

natively, although the provided software SonicStage would convert MP3 files into

the ATRAC or ATRAC3 formats.

In 1993, Sony challenged the industry standard Dolby Digital 5.1 surround sound

format with a newer and more advanced proprietary motion picture digital audio

format called SDDS (Sony Dynamic Digital Sound). This format employed eight

channels (7.1) of audio opposed to just six used in Dolby Digital 5.1 at the time.

Unlike Dolby Digital, SDDS utilized a method of backup by having mirrored arrays

of bits on both sides of the film which acted as a measure of reliability in case the

film was partially damaged. Ultimately, SDDS has been vastly overshadowed by

the preferred DTS (Digital Theatre System) and Dolby Digital standards in the

motion picture industry. SDDS was solely developed for use in the theatre circuit;

Sony never intended to develop a home theatre version of SDDS.

In 1998, Sony launched their Memory Stick format; flash memory cards for use in

Sony lines of digital cameras and portable music players. It has seen little support

outside of Sony's own products with Secure Digital cards (SD) commanding

considerably greater popularity. This is due in part to the SD format's greater

throughput (which allows faster recording and access), higher capacities, and

significantly lower price per unit capacity compared to Memory Sticks available at

the same time. Sony has made updates to the Memory Stick format with MemoryStick Duo and Memory Stick Micro.

Sony and Philips jointly developed the Sony-Philips digital interface format

(S/PDIF) and the high-fidelity audio system SACD. The latter has since been


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entrenched in a format war with DVD-Audio. At present, neither has gained a

major foothold with the general public. CDs are preferred by consumers because

of ubiquitous presence of CD drives in consumer devices.

In 2004, Sony built upon the MiniDisc format by releasing Hi-MD. Hi-MD allows

the playback and recording of audio on newly-introduced 1 GB Hi-MD discs in

addition to playback and recording on regular MiniDiscs. Recordings on the Hi-MD

Walkmans can be transferred to and from the computer virtually unrestricted,

unlike earlier NetMD. In addition to saving audio on the discs, Hi-MD allows the

storage of computer files such as documents, videos and photos. Hi-MD

introduced the ability to record CD-quality audio with a linear PCM recording

feature. It was the first time since MiniDisc's introduction in 1992 that the ATRAC

codec could be bypassed and lossless CD-quality audio could be recorded on the

small discs.

Sony was one of the leading developers and remains one of the strongest

proponents of the Blu-ray Disc optical disc format, which eventually emerged as

the market leader over the competing standard, Toshiba's HD DVD, after a 2 year-long format war. The first Blu-ray players became commercially available in June

2006, and Sony's first Blu-ray player, the Sony BDP-S1, debuted in December 2006

with an MSRP of US $999.95. By the end of 2007 the format had the backing of

every major motion picture studio except Universal, Paramount, and

DreamWorks.The Blu-ray format's popularity continued to increase, solidifying its

position as the dominant HD media format, and Toshiba announced its decision to

stop supporting HD DVD on 19 February 2008.


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PRODUCTS OF SONY

Sony offers a number of products in a variety of product lines around the world.Sony has developed a music playing robot called Rolly, dog-shaped robots called

AIBO, humanoids, and QRIO.

PlayStation

In late 1994 Sony launched the PlayStation to compete with other consoles. This

successful console was succeeded by the PlayStation 2 in 2000. The PlayStation 2

has become the most successful video game console of all time, selling over 150

million units as of 2011. The PlayStation brand was extended to the portable

games market in 2005 by the PlayStation Portable (PSP). Sony developed the

Universal Media Disc (UMD) optical disc medium for use on the PlayStation

Portable. Although Sony tried to push the UMD format for movies, major-studio

support for the format was cut back in spring 2006, though as of 2009 somemajor-studio titles continue to be released on UMD.

Sony released the PlayStation 3, a high-definition console, in 2006. It later

introduced the PlayStation Move, an accessory that allows players to control

video games using motion controllers. Sony announced that on 1 April 2010 it was

electronically removing Linux functionality from the first generation PS3. A class

action has been taken out in California challenging the legality of "thedisablement of valuable functionality originally advertised". Sony admitted in late

2005 to hiring graffiti artists to spray paint advertisements for their PlayStation

Portable game system in seven major cities including New York City, Philadelphia,

San Francisco, and Sydney, Australia. The mayor of Philadelphia filed a cease and

desist order. According to Sony, they paid businesses and building owners for the


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right to graffiti their walls. As of early January 2006, Sony had no plans to keep or

withdraw them.

In November 2006, a marketing company employed by Sony created a website

entitled "All I want for Xmas is a PSP", designed to promote the PSP through viral

marketing. The site contained a blog, which was purportedly written by "Charlie",

a teenager attempting to get his friend "Jeremy"'s parents to buy him a PSP,

providing links to t-shirt iron-ons, Christmas cards, and a "music video" of either

Charlie or Jeremy "rapping". However, visitors to the website soon discovered

that the website was registered to a marketing company, exposing the site on

sites such as YouTube and digg, and Sony was forced to admit the site's true origin

in a post on the blog, stating that they would from then on "stick to making cool

products" and that they would use the website for "the facts on the PSP". The site

has since been taken down. In an interview with next-gen.biz, Sony admitted that

the idea was "poorly executed".

In 2003, Sony Computer Entertainment America, marketer of the popular

PlayStation game consoles, was sued by Immersion Corporation of San Jose,California which claimed that Sony's PlayStation "Dual Shock" controllers infringed

on Immersion's patents. In 2004, a federal jury agreed with Immersion, awarding

the company US$82 million in damages. A U.S. district court judge ruled on the

matter in March 2005 and not only agreed with the federal jury's ruling but also

added another US$8.7 million in damages. This is likely the reason that the Sixaxis

controller for the PlayStation 3 had no rumble feature. The DualShock 3 has since

been made available for the PlayStation 3, reintroducing rumble capabilities.

Microsoft Corp. was also sued for its Xbox controller, however, unlike Sony, theysettled out of court so they could continue using the technology for the follow-up

Xbox 360. A California judge ordered Sony to pay Immersion a licensing fee of

1.37 percent per quarter based on the sales of PlayStation units, Dual Shock

controllers, and a selection of PlayStation 2 games that use Immersion's

technology.


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VAIO

Sony offers a line up laptops branded as VAIO. Previously Sony has disabled

hardware virtualization on their high end VAIO laptops, citing concern for users

running malicious code. However, most new VAIO laptops can utilize

virtualization.

Laptop batteries dysfunction

In April 2006, a Sony laptop battery exploded in Japan and caught fire. A Japanese

couple in Tokyo sued both Sony and Apple Japan for over 2 million (US$16,700)

regarding the incident. The suit argues that the man suffered burns on his finger

when the battery burst into flames while being used, and his wife had to be

treated for mental distress due to the incident.

On 14 August 2006, Sony and Dell admitted to major flaws in several Sony

batteries that could result in the battery overheating and catching fire. As a result

they recalled over 4.1 million laptop batteries in the largest computer-related

recall to that point in history. The cost of this recall was shared between Dell and

Sony. Dell also confirmed that one of its laptops caught fire in Illinois. This recall

also prompted Japan's Ministry of Economy, Trade and Industry to order the

companies to investigate the troubles with the batteries. The ministry said that

Sony must have reported on their findings and drawn up a plan to prevent futureproblems by the end of August, or face a fine under consumer safety laws. On 23

September 2006, Sony announced its investigation of a Lenovo ThinkPad T43

laptop which overheated and caught fire in the Los Angeles International Airport

on 16 September, an incident that was confirmed by Lenovo.


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On 28 September 2006, Sony announced a global battery exchange program in

response to growing consumer concerns. Acer, Apple Computer, Dell, Fujitsu,

IBM, Lenovo, Hewlett-Packard, and Toshiba all recalled Sony laptop batteries.Itwas also reported that Fujitsu, Toshiba, and Hitachi were considering the

possibility of seeking compensation from Sony over the battery recalls.

Sony Pictures Entertainment

In July 2000, a marketing executive working for Sony Corporation created a

fictitious film critic, David Manning, who gave consistently good reviews for

releases from Sony subsidiary Columbia Pictures that generally received poor

reviews amongst real critics. When the scandal was revealed, Sony apologised to

Ridgefield Press, the newspaper Manning was claimed to be from. Sony claimed it

was unaware of the marketing ploy, and pulled the ads and suspended Manning's

creator and his supervisor. In 2003, Sony paid the state of Connecticut $325,000in fines following the Connecticut Attorney General's investigation into Sony's

alleged fraudulent marketing practices. In August 2005, Sony finalized a

settlement to pay $1.5m to fans who saw the reviewed films in the US.

In 2006 Sony started using ARccOS Protection on some of their film DVDs, which

caused compatibility problems with some DVD players including models

manufactured by Sony. After complaints, Sony was forced to issue a recall.


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Sony BMG

In October 2005, it was revealed by Mark Russinovich of Sysinternals that Sony

BMG's music CDs had installed a rootkit on the user's computer as a DRM

measure (called Extended Copy Protection by its creator, British company First 4

Internet), which was difficult to detect or remove. This constitutes a crime in

many countries, and poses a major security risk to affected users. The uninstaller

Sony initially provided removed the rootkit, but in turn installed a dial-home

program that posed an even greater security risk. Sony eventually provided an

actual uninstaller that removed all of Sony's DRM program from the user's

computer. Sony BMG faced several class action lawsuits regarding this matter. On31 January 2007, the U.S. Federal Trade Commission issued a news release

announcing that Sony BMG had agreed to settle Federal Trade Commission

charges that Sony BMG committed several offenses against United States federal

law. This settlement required that Sony BMG allow consumers to exchange the

CDs through 30 June 2007, and to reimburse consumers for up to $150 for the

repair of damage to their computers that they may have incurred while removing

the software.

In September 2009 Sony had its Mexican office raided by police to recover over

6000 CDs, masters and artwork, by the popular Latin American artist Alejandro

Fernndez. Fernndez's lawyers claimed that Sony was in breach of contract as

Fernndez had been contracted to Sony for seven albums and the recordings

were an eighth album made after the contract had expired.

Digital photography

Sony offers a range of digital cameras, ranging from point-and-shoot models to

digital SLRs.Initially, in October 2005, it was reported by Sony that there were

problems with the charge-coupled devices (CCD) in 20 models of digital still

cameras. The problems can prevent the cameras from taking clear pictures, and in


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some cases, possibly prevent a picture being taken at all. In late November 2006,

the recall was broadened to eight additional models of digital cameras sold

between 2003 and 2005. The problem appears to manifest itself mostly when the

camera is used in areas with hot weather. The eight models affected are the

following: DSC-F88, DSC-M1, DSC-T1, DSC-T11, DSC-T3, DSC-T33, DSC-U40 and

DSC-U50. Sony indicated that they would repair or replace the affected camera at

no charge. Since Sony is one of the largest producers of CCD chips, this recall may

affect other manufacturers and models of cameras, possibly as many as 100

models or more. Other manufacturers of digital cameras, including Canon,

Minolta, Nikon, Olympus or Fuji have indicated they will replace faulty CCDs in

their respective models of cameras if necessary.

STRATEGIES OF SONY

"To be the leading global provider of networked consumer electronics and

entertainment"

Sony today presented a series of new initiatives designed to build on its previous

three-year revitalization plan and to position the company as the leading global

provider of networked consumer electronics and entertainment. In particular, the

company will focus on strengthening core businesses, enhancing networkinitiatives and leveraging international growth opportunities to build for the

future and drive further growth and profits. In addition, Sony announced the

following key mid-term goals:

- Expand PC, Blu-ray Disc-related products and component/semiconductor

businesses into "trillion yen businesses**," joining LCD TVs, digital imaging (digital

cameras and camcorders), game and mobile phones and raising the total number

of "trillion yen businesses" to seven.

- Ensure that 90% of our electronics product categories are network-enabled

and wireless-capable by the fiscal year ending March 31, 2011 ("FY2010").

- Roll out video services across key Sony products by FY2010, starting with

the summer 2008 launch on the PLAYSTATIONNetwork.


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- Double annual revenue from BRIC (Brazil, Russia, India, China) countries to

2 trillion yen*** by FY2010.

Sony has identified a 5% operating margin as a baseline of profitability to

generate cash to continue to lead and innovate. Furthermore we will target anannual return on equity of 10% by FY2010. Sony is also planning to allocate a total

of 1.8 trillion yen to invest in and build key businesses and technologies over the

next three years.

Highlights are as follows:

Further Strengthen Our Core Businesses

Sony intends to maintain a leading position in its "trillion yen businesses" (LCD

TVs, digital imaging, game and mobile phones) and will focus on expanding its PC,

Blu-ray Disc-related products, and component/semiconductor businesses into

"trillion yen businesses" by the end of FY2010. At the same time, we expect to

improve the operations of our TV business significantly and implement a variety

of cost reduction measures to restore that business to profitability in the fiscal

year ending March 31, 2009*, and strive for the global No. 1 position in LCD TVs

by FY2010. Of the planned 1.8 trillion yen investment over the next three years,

approximately 900 billion yen will be allocated towards strengthening core focusareas within components and semiconductors, such as image sensors, batteries,

display devices and Blu-ray Disc-related components.

Sony is also promoting the concept of "open innovation", whereby we are looking

not only inside the company, but outside for technologies that foster innovation.

By combining Sony's inherent technological strengths with external expertise, we

aim to accelerate R&D efficiency and enable the company to effectively respondto rapidly changing customer needs and preferences in the network era. Through

the creation of new user experiences, strengthening core businesses, driving

innovation, and minimizing the environmental impact of its operations, Sony will

strive to achieve not only sales volume, but also sustainable and profitable

growth.


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In the Game segment, the two key drivers of new growth are non-game content

and services in tandem with enhanced network capability. Sony also expects to

achieve profitability in this segment in the fiscal year ending March 31, 2009*, a

significant year-on-year improvement due to hardware cost reductions and an

enhanced line-up of software titles for PLAYSTATION3 ("PS3"). Key Game

initiatives are:

1. Expand content and services available on the network platform

2. Continue to expand the PS3 customer base through the strength of Blu-ray

Disc

3. Accelerate PS3 sales through upcoming key franchise software titles

4. Continue PS3 cost reduction initiatives

Network Initiatives

Sony will increase network and wireless connectivity across its family of devices

and build a service platform to provide a seamless user experience across our key

hardware devices and content. We are planning to expand services that will

enable our customers to enjoy content such as motion pictures and television

programming through the network on a variety of Sony products such as

BRAVIA LCD TVs, PS3, PSP (PlayStationPortable) and Walkman video music

players.

Sony's unique position in electronics and entertainment allows us to offer

compelling network services. As an example of our potential, this November, Sony

Pictures Entertainment will offer one of the most highly anticipated films of the

summer, "Hancock", exclusively to all internet connected BRAVIA LCD TVs in theU.S. before it is available on DVD. This film will be distributed to Sony customers

directly to their televisions outside conventional distributors and without the

need for any set-top box. This is an industry first.

Capitalize on Growth in BRIC Countries and Other Emerging Markets


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Because Sony believes that the largest growth opportunities exist outside its

traditional markets of Japan, North America and Europe, expanding Sony's

business into new markets is a key area of focus. New markets in regions

including the BRIC countries - Brazil, Russia, India and China - are developing

quickly, and Sony's business in these countries is growing rapidly. Going forward,

Sony plans to accelerate business expansion through collaboration and

integration, not just within each of the Electronics, Game and Pictures segments,

but across the entire Sony Group.

Sony will target annual sales of 2 trillion yen in the BRIC countries (including

revenues from Sony Ericsson Mobile Communications and SONY BMG) by FY2010,

doubling FY2007 sales with annual Electronics segment sales alone slated to grow

from 600 billion yen to 1.2 trillion yen during this period.

Environmental Initiatives - Green Management 2010

"Green Management 2010" is a series of mid-term environmental targets that are

guiding the Sony Group in its efforts to help prevent global warming, recycle

resources, ensure appropriate management of chemical substances and address a

broad range of other environmental issues. Through these initiatives, Sony is

striving to achieve an absolute reduction in greenhouse gas emissions, specifically

a 7% or greater reduction in CO2 emissions by FY2010 compared to the level of

FY2000.

Financial Strategies for the Mid-Term

In order to generate funds to continue to grow and innovate, Sony has identified

a 5 percent operating margin as a baseline of profitability. Sony is also

establishing return on investment capital as a fundamental framework for

evaluating capital investments and potential acquisitions across the Sony Group

to ensure the optimum use of resources. Our targeted investment (an aggregate

of 1.8 trillion yen by the end of FY2010) will put Sony in a position to drive further

growth and innovation over the next three years and beyond. Sony will also target

an annual return on equity of 10% by FY2010. Going forward, we will work to

deliver a stable, high level of profitability while enhancing shareholder value.


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The business environment in which Sony operates is changing rapidly and, with

the advance in digital technology and broadband networks, technological

innovation is moving at a pace never experienced before. In order to be a leading

company in the digital age, Sony aims to leverage its unique advantage of

producing both hardware and content, continuing to offer cutting-edge products

together with superior content and services to meet the needs and expectations

of our customers.

PRODUCT INNOVATION

To ensure the ongoing vitality of a company's product offerings, R&D

professionals must play a daunting array of roles. The already rapid, yet still

accelerating, pace of technological change may lead some companies to devotemore resources to intensive internal research efforts. However, the shift toward

global competition demands a more market-oriented focus from R&D; clear

understanding of current and potential markets must drive R&D efforts. And

efficient, cost-effective manufacturing of new products requires an R&D

organization that understands and interacts effectively with the production

department

- Engineered to pioneerThinner, lighter VAIO notebooks require less energy and reduce consumption

and depletion of materials.

Most VAIO computer models are ENERGY STAR 5.0 compliant and have received

either EPEAT Gold or Silver rankings. This means they use less power, reducing

both energy bills and greenhouse gas emissions.

- More picture quality, less energy wasted


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Sony BRAVIA TVs and LCDs are developed with the environment in mind. This

includes reduced costs throughout the product lifecycle -- from buying to

maintaining to running your Sony TVs and LCD displays. All BRAVIA HDTVs are

designed to meet or exceed ENERGY STAR specifications, saving you money on

energy costs while still delivering stunning images. The BRAVIA EX700 and

LX900, for example, features a Presence Sensor that turns off the backlight when

no motion in the room is detected, and the Energy Saving Switch eliminates

stand-by power consumption without having to unplug your unit. Also, Edge LED

backlight LCD panels reduce operational power consumption compared to

conventional CCFL backlit televisions.

Sony BRAVIA HDTVs also feature innovative technology that self adjusts

backlight to save power. Light sensors automatically adjust the brightness of the

screen to maximize viewing quality and minimize energy usage, all to support the

conservation of valuable resources and limit green house gas emissions.

Sony Ericsson is an industry leader in terms of no-load power consumption and

offers some of the most efficient chargers in the world. All phones sold globallysince 2003 have chargers that meet the EU voluntary CoC, requiring no-load

power usage of less than 0.3 watts, for power supplies. Also, for all newly

developed chargers the minimum requirement for energy efficiency is Energy Star

2.0.

Sony Tablet S, revealed at IFA today, shows true innovation in hardware design.

Its slightly smaller than the iPad, but it feels completely different to hold, with itsfolded-magazine wraparound design. It has high-tech features that set it apart

from the iPad and other Android Honeycomb tablets, including DLNA support, an

IR blaster, and what Sony calls quick view/quick touch, which makes the screen

and Web browser extremely responsive and fast-loading.


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TECHNOLOGY

Sony harnesses new technologies to contribute to the realization of sustainable

lifestyles and address key issues of importance to society.

SOLUTION

In addition to taking steps to lower greenhouse gas emissions from its operations,

Sony is developing energy-saving products and IT technologies that help reduce

CO2 emissions from Sony products during use by customers.

MARKETING

Sony offers programs that enable consumers to make their own contribution

toward solving environmental problems.

DESIGN

Sony offers programs that enable consumers to make their own contribution

toward solving environmental problems.

sony corporation commonly referred to as sony (1)

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