BENEFITS OF DOCUMENT
DESCRIPTION
ANALYSIS OF COMPETITIVE STRATEGY – Example: SONY's LCD television BU
After being market leader in the TV business for decades, Sony lost its position and fell in the red by missing the transition to LCD TVs
We have analyzed Sony's competitive position and recommended actions to bring the TV business back into the black
INDUSTRY ATTRACTIVENESS
The worldwide TV industry is a large and growing industry, dominated by the fast growing LCD TV market segment
LCD TV growth is driven by the replacement of old CRT TVs – regional level of competition depends on penetration rate
Despite high growth, the global LCD TV market is not attractive due to intense rivalry and very powerful buyers and suppliers
LCD TV brands are squeezed between very powerful buyers and suppliers, putting enormous pressure on margins
Premium brand vs. price fighter – Would you pay twice as much for the Sony television?
A lack of differentiation and the introduction of private labels quickly eroded price premiums of tier-1 brands, such as Sony and Samsung
TV brands are backward integrating to control core technology, ensure access to LCD panels and increase margins
KEY SUCCESS FACTORS
Customers are driven by price, screen-size & picture quality, branding & design and compatibility
Most important KSF are in-house panel production, state-of-the-art R&D, outsourced production and streamlined logistics
COMPETITIVE POSITION
Sony envisions a world in which the TV is the center of the "High-Definition" world
Sony targets its LCD TVs for the global mass consumer market, trying to regain leadership by differentiating TVs at minimal cost
Sony has a large number of resources to build on, including its strong brand, large product portfolio and extensive experience
Sony has built four strong capabilities: miniaturization, winning standard wars, leveraging brand image and product development
Sony's resources and capabilities do not provide a significant competitive advantage as they do not fulfill the most important KSFs
STRATEGIC ACTIONS
To build a sustainable competitive advantage, Sony should focus on exploiting strengths that provide a differentiation advantage
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