Sony, created in May 1946 by A. Morita and Masaru Ibuka, was originally called the Tokyo Telecommunications Engineering Corporation. At the beginning, Sony was a small company but today it has obviously become a recognized global company. This firm, which follows the concept ofKereitsu was based in Tokyo at the time of its creation but now it is considered a global business with offices all around the world. Today, Sony is managed by Ryoji Chubachi, the Chief Executive Officer and the Executive Deputy President Katsumi Ihara.
This company specializes in audio, video, television, information, communication, semi-conductors and electronic components. The firm employed 1,514,000 workers around the world and in 2005, it registered 7,159,600 million Yen of sales altogether. Sony's basic strategy involved innovation and before becoming a global firm, Sony focused on innovations as a factor of development and achievement.
In 1950, Sony created the video tape recorder; in 1979, it manufactured the product that became synonymous with the brand: the Walkman. Sony, even today, continues to innovate and create new products for the public; such as the Playstation in 1994 and the new version of Walkman.
This research currently focuses on the Sony products for the public and not for the professionals. The products that are popular among the public are the cell phones, audio and other video products. Sony manufactures its products based on the new technologies. Customer profiles are very simple. Sony has an impact on the entire social class, especially in developed countries where the main focus is on "new technologies".
Tags: Sony innovation strategy, Walkman, electronics industry, Sony acquisition of CBS Records
[...] In order to optimize these processes of innovation Sony had to improve four fields of activity: conceiving the idea, the prototype, the production process and the commercialization. These were the four steps for successful innovation. To improve the creation of idea, Sony used the method of “brainstorming”: interactions between the researchers to hit upon more ideas and accelerate possibilities. Sony could perhaps increase the number of experts to save more time. Consumers' studies could be initiated in order to coordinate better the needs of customers and the offers: looking for an idea according to the tastes and needs of the consumer base. [...]
[...] domain of new technologies, firms have to stay competitive and if there is much of a delay, they cannot stay the race”. For instance, Ericson was bought by Sony as it did not succeed with respect to its cell-phones and was overtaken by other brands such as Samsung. In this company, where everything is based on innovation, the most important factor is Research and Development. Sony has a lot of research laboratories all around the world and a lot of money has been invested on research and development. [...]
[...] That's why brands such as Nintendo are launching products on a market which was tested by Sony before. Leaders in this market should constantly be able to anticipate the actions of their competitors. It is also very difficult to keep up this position owing to the imitations/counterfeits which are very popular in Asian countries, where markets are saturated; to stay competitive, Sony has to propose good prices. It is obviously cheaper to imitate than to innovate, so prices pose a big challenge that has to be overcome to stay on the top. [...]
[...] Everybody remembers the ad of the dog robot which showed the modern image of Sony. Sony tried to keep a modern and prestigious image. For example, the firm organized novel events including the football game featuring robots in order to show that Sony was atrue pioneer and not a follower. It creatively used images, colors and music on ads to stay in the consumer's minds. The product had to stay mysterious and they were no explanations: just music and at the end, just one sentence: like no other”. [...]
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