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BENEFITS OF DOCUMENT

Real life example of a competitive strategy analysis
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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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Source: Analysis of Competitive Strategy - Example PowerPoint document

Analysis of Competitive Strategy - Example

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Initial upload date (first version): Feb 23, 2016
Most recent version published: Feb 24, 2016

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