Briefly identify the main challenges facing Sony’s senior management. Identify and describe the origins of the challenges.
Sony’s proprietary technologies are not freely available for all to use. Sony hopes that they would provide higher profit margins. But in today’s market, standard free is correct strategy. Consumers need the electronic products interact each others. They want a concentrative electronic product. Sony’s own standards are not only raising the cost, but also depressing the experience of products.
Silo effect leads the poor communication in each part. So each group cannot work together that the convergence strategy slowed down.
The lack of marketing and brand development at Sony was pulling against the strategy. Along with technology development, the cost of product has reduced in global manufactures. In technology, Sony has not held absolute advantages. So the high price strategy was not appropriate strategy.
The loss of credibility and some fierce competitors led the loss of make share and deflation. The latest technological advances started to leave Sony behind and it become increasingly difficult to justify a price premium over cheap rivals.
The unsuccessful convergence model failed to use content to promote its technology.
Sony’s bloated corporate structure and the level of bureaucracy need improve. The problem is high cost. Except the cutting cost, it also will be easier for Sony’s independently minded business groups to work together. Reduce bureaucracy and create an environment with open communication which is more dynamic and focused, but open innovation.
1. Why would a change program at Sony take at least three year to show results?
In organisational change does not result in measurable improvement in effectiveness. It may merely enable the organization to survive or maintain its position in the industry. Competitors are often undertaking the same types of change, so in relative terms companies are not gaining on...