Xu,Xiaoxuan (Connie)Zhang,Yao (Stephanie)Liu,Zhenzi (Christina)

Nov.10th ,2008

Industry Analysis

Company Analysis (History, Current, Future)

International Expansion

Recommendations

Competitor Analysis

SWOT Analysis

• The beginning of consumer digital camera era

1995, Casio QV-10

Industry Analysis

• The becoming of mainstream product

• Pocket-size and fashionable

• Matured digital camera industry

Industry Analysis

• SLR digital camera & Ultrathin digital camera

2005,Sony T7

2003, Nikon D70

Industry Analysis

• Fierce competition between camera makers

Industry Analysis

• The designs of the digital cameras become more classic and stylish.

• A higher level of face detection technology and intelligent scene recognition technology make shooting easier.

The Tendency of Digital Camera Industry:

Industry Analysis

• Third, the use of touch-screen

Industry Analysis

The Tendency of Digital Camera Industry:

Sony

T300

Company Analysis

• In 1945, Masaru Ibuka and Akio Morita, Tokyo Telecommunications Engineering Corporation

• In 1958, New Name

• First electronic camera, Mavica, in 1981

magnetic recording ， embryonic form

History

Current

•Leader

•Digital cameras, recorded music, PC

•The headquartered is in Tokyo

•2007, Revenue increased 10.5%

•Increasing sales in the electronics and games

•Cyber-Shot

•NO.2 digital camera

Company Analysis

Future

• 1.8 million Japanese Yen

• Facilitate the customization service

Company Analysis

International Expansion

• 1960 - America

• 1980 - Sony Euro Switzerland

UK

Germany

France

• 1996 - China

- most important

- large potential

Expansion in electronic field

Horizontal Global Expansion

Entertainment

• Sony Music Entertainment

- founded by Sony and CBS in 1968

• Sony Pictures Entertainment

- took over Columbia TriStar Motion Picture Group in 1989

- subsidiaries in Hong Kong, Madrid

- merged with MGM in 2004

- the largest film company

International Expansion

Global Expansion Strategy

Globalization

All the branches in

the world share the

same technology and

company culture.

International Expansion

Localization

• In operation: localized R&D, procurement, production,

distribution and sale

• In talent: invests the local talents

Make overseas R&D center

• The importance

• Advantages:

- the cycle of R&D shortened

- make better use the talents and capital all of the world

- cross-border collaboration

International Expansion

Digital CameraDigital Camera

• Manufactory:

- produced not only in Japan but other Asian countries

(Premier Image Technology &Abco)

- cooperation with Carl Zeiss AG,

(a German manufacturer)

International Expansion

• Marketing:

the market share of Sony

In China, Sony is the leader in this market

area Sony Other Brands

U.S. 37% 63%

Europe 12% 78%

International Expansion

Challenges

• The continuous price reduction

- the brand image

- lead to a shortage of capital

• The image of Sony is too complicated

- In India, SPE

- In Japan, an electronic company

- In U.S., an Entertainment company

International Expansion

Sony’s main competitors include

Canon, Nikon, Kodak, Samsung, and

Panasonic.

Competitor Analysis

Canon

• Strong technical strength and marketing ability

• Produces the best cameras for shooting portraits

• Relies on its brand recognition

• The number one company in the digital camera industry

• Not as fashionable as Sony’s

Competitor Analysis

Nikon

• High-end consumer digital camera market

• No self-produced CCD (Charge-coupled device, an electronic

light sensor used in digital cameras )

• Top-ranking SLR digital cameras

• Not well accepted by low-end market users

Competitor Analysis

Kodak

• Boring color

• Appearances are less prominent

• Quit the digital camera industry on August 1, 2006

• Wrong decision in 2006

Competitor Analysis

Samsung

• Strong capability in electronic technology

• Slim appearance and colorful design

• Shortage of core technologies

Competitor Analysis

Panasonic

• Develops its own CCD sensor device

• The leader of electronic products

• Weak fundamental of optical technology

• Higher prices

Competitor Analysis

SWOT Analysis

• Brand image: new and high quality, CCDs

• Global operations: 204 countries. Sales(2007): US(26.9%), Japan(25.6%),Europe(26.6%). Global producing ability: Japan(50%).

• Professional design and R&D team. Survey: 30% customers; Technology

Strengths

Weaknesses

• SG&A expenses. Operating profits 69.3% (2007)

• Legal proceedings. In 2004, Eastman Kodak VS Sony for 10 patents.

• Not easy to operate. Survey: 24% customers.

SWOT Analysis

Opportunities

• Business reorganization: $1.2 billion and $0.3 billion in 2006 and 2007.

• Partnership with FIFA (Federation International de Football Association), 2007,8,40,2

SWOT Analysis

Threats

• Integration of alliances and joint ventures.

S-LCD(Samsung) 2004. SONY BMG

(Bertelsmann)

Cultures and Interest Conflicts.

• Raw material prices. $350 (2008).

• Intense competition.

SWOT Analysis

Recommendations

• Do not make use of Memory Stick

Short term

• To expand in the luxury business

• To contribute to the environment protection

• Value-added activities on value chain.

- market research

- sourcing

- production

- marketing

- after-sales service

• Intellectual property rights & high-tech talent, Suit

Long term

Recommendations