Sony

Part A

Question 1:

The business is on track to lose money for the sixth straight year. In the past, Sony’s engineers could push the company to roll out products that were technology marvels but struggled to turn a profit. Since the OLED technology is so new that Sony is barely breaking even on the pricey set, Sony push back introduction of the OLED television so that return its TV business to profitability is a priority.

For the advantages in waiting, it can attract investors who are interest in invest on new technology. Also, it can create a promising opportunity because Sony did not have a blockbuster since Trinitron cathode rat tube (CRT) televisions of the 1970s, 1980s, and 1990s.

For the drawbacks in waiting, it may lost market share in music players, video game systems and other types of TVs in recent years because the public knows there is a new technology will be introduced soon. Also, it opens the door to competitors assume leadership in a promising technology, such as Samsung Electronics Co., LG Electronics Inc etc.

For the threat of moving to market with new technology too fast, there are operational and supply chain challenges. The manufacturing for new technology is too high because it is not common. Also, the needed components are hard to procure so that production of larger panels would likely introduce more difficulties. For example, LCD screens were first tested in the 1970s, but were not commonly used in TVs until 30 years later.

Furthermore, the reputation maybe affected if the introduction have been delayed. Consumer will not wait anymore for the future new technology and the loyalty of enthusiasts will be decreased.

Question 2:

There are three competitive threats that Sony faces. First one is unrelated diversification. It stuck to maintain a presence. It is the most important threats Sony needs to face. Unlike Samsung and LG some Asian companies, Sony even expands...