Xu,Xiaoxuan (Connie)
Zhang,Yao
(Stephanie)
Liu,Zhenzi (Christina)
Nov.10th ,2008
 Industry Analysis
 Company Analysis
(History, Current, Future)
 International Expansion
 Competitor Analysis
 SWOT Analysis
 Recommendations
Industry 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
2003, Nikon D70
Industry Analysis
•
Fierce competition between camera makers
Market Share in the Digital Camera Industry, 2006
Canon
18.70%
31.50%
Sony
Kodak
15.80%
Olympas
Samsung
7.60%
Nikon
10%
7.80%
8.60%
Other
Industry Analysis
The Tendency of Digital Camera Industry:
•
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.
Industry Analysis
The Tendency of Digital Camera Industry:
•
Third, the use of touch-screen
Company Analysis
History
•
•
•
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
Company Analysis
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
International Expansion
Expansion in electronic field
•
•
•
1960 - America
1980 - Sony Euro
Switzerland
UK
Germany
France
1996 - China
- most important
- large potential
International Expansion
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
core
technology
Globalization
All the branches in
the world share the
company
philosophy
key
strategic
markets
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 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
area
U.S.
Europe
Sony
37%
12%
Other Brands
63%
78%
In China, Sony is the leader in this market
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
Competitor Analysis
Sony’s main competitors include
Canon, Nikon, Kodak, Samsung, and
Panasonic.
Competitor Analysis
Canon
•
The number one company in the digital camera industry
•
Strong technical strength and marketing ability
•
Produces the best cameras for shooting portraits
•
Not as fashionable as Sony’s
•
Relies on its brand recognition
Competitor Analysis
Nikon
•
Top-ranking SLR digital cameras
•
High-end consumer digital camera market
•
Not well accepted by low-end market users
•
No self-produced CCD
(Charge-coupled device, an electronic
light sensor used in digital cameras )
Competitor Analysis
Kodak
•
Wrong decision in 2006
•
Boring color
•
Appearances are
less prominent
•
Quit the digital
camera industry
on August 1, 2006
Competitor Analysis
Samsung
•
Slim appearance and colorful design
•
Strong capability in electronic technology
•
Shortage of core
technologies
Competitor Analysis
Panasonic
•
The leader of electronic products
•
Develops its own CCD sensor device
•
Weak fundamental of optical technology
•
Higher prices
SWOT Analysis
Strengths
•
•
•
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
SWOT Analysis
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.
Recommendations
Short term
•
Do not make use of Memory Stick
•
To expand in the luxury business
Recommendations
Long term
•
•
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