Team 2: SONY eReader
Alyssa Walsh Amanda Arvin
Mark LeaverXavier Ortiz
Mission/Vision/Wining
Mission-“Make” “Believe”
Vision -Consumer convenience, Affordability
Winning-Preferred eReader in education
Sound Strategy
Target students Special Applications Maintain Low-Cost Ease of use Educational sector Young consumers Continuous use
Customers for life Elementary schools Middle Schools High Schools Higher Education Exclusive content
Updated Value Curve
Refined strategy Sony Reader as a complementor Carve a new market Create innovations, import ideas, and
eliminate features
Low-Cost Leadership/Focused Organization with the
ability to produce a good or service at a lower cost then competitors
Sony is a Low-Cost leader-Already established distribution channels-Customer base (brand loyal)-Less capital and human resources for expansion
Organization with the ability to be a low-cost leader in a narrow market segment
Sony: considered a focused low-cost leader
-Economically priced e-Reader device market segment
-One of the lowest price e-Reader devices in market
Focus on being a complementor
Differentiation/ Focused Organization with a
uniqueness that customers are willing to pay extra for
-Gain greater market share-Higher profit margins Criteria required for
successful differentiation-Uniquely satisfy one or more
needs that are valued by buyers-Customers must be willing to pay
higher prices Coca-Cola and Pepsi
Unique products are targeted to a particular market segment or arena
Greater differentiation = smaller target segment
-Less individuals with money to purchase product
Mercedes Benz:-Imports only its most expensive top-
of-the-line models-Focused differentiator marketing to
most affluent industry-Possible future plans for Sony
s v
Production and Distribution
Skills
R&D (Innovation)
Efficient Production and
Distribution
New Products
Decreased Cost, Higher Quality
Increase in Sales
Decreased Production and
Distribution Costs
Customer Satisfaction
Profitability Balanced Score Card
External
Objectives Measures Targets Initiatives Main Competitor in Market Market Share >40% Market Share
Excellent Customer Service Customer Surveys Effectively Manage all
Complaints or Suggestions
Online Anonymous Survey
Image Brand Index
Internal Business Processes
Objectives Measures Targets Initiatives
Quality Controls, Inspections,
and the # of returns/replacements.
Decrease # of Defected Products
Productivity # Products Manufactured per Day
Target set before each financial period.
Bonuses for Plant/Line Managers
Reduce Costs Cost of Production Minimum
Incorporate other Depts in Production,
Distribution, and Retail
Balanced Score Card
Learning and Growth Objectives Measures Targets Initiatives
Technolgical Innovations # Additional Features,
Improvements, etc
Target set before the R&D process for financial period.
Market Research
Skilled Employees Employee Knowledge Increase Employee
Knowledge (Company, Products, Operations
Employee Training
Financial
Objectives Measures Targets Initiatives
Profitability Net Income Steady % Increase
Annually
Reduce Costs, Maximize Sales (R&D and Marketng Effort s)
Growth in Sales Net Sales % Goal Set Before each financial period. New Retail Locations
Increase Customers # of Customers A steady % increase Marketing
Balanced Score Card
VRINE
Valuable (4) Rare (1) Inimitable (1) Non-Substitutability (1) Exploitability (5)
PESTEL
Political (10) Economic (9) Sociocultural (9) Technology (8) Environment (4) Legal (5)
Porters 5 Forces
Rivalry (2) Threats of New Entry (4-5) Supplier Power (2) Buyer Power (3) Threats of Substitutes (4) Complementors (NA)
Profit Pool
Entry into new industry Supply Chain Purchasing, production, distribution Functional break-down of revenue
generation
Conclusion/ Wrap Up
Be the GO-TO eReader Focus on educational sector Market to younger consumers Consumers for life Exclusive Context only with Sony Different Models