Brand Rejuvenation - a Case Study of Sony

1890 Words Apr 21st, 2008 8 Pages
Brand Rejuvenation - A case study of Sony

After a long time, a brand other than Apple is creating a global buzz about the impending launch of one its product. Sony with the launch of PlayStation 3 seems to have stuck a chord with consumers once again after a long hiatus. It was high time that one of the world’s iconic brands started reclaiming its rightful position as the leader of the consumer electronics market. Even though PlayStation 3 seems to have brought back some energy and zest for the brand, it is an irony that the life of such a strong global brand has come to depend on a single product. As one of the pre-eminent global consumer electronics brand which has enjoyed unparallel brand equity and loyalty, Sony is surprisingly a
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Being the first mover or in many cases, the inventor of the category, Sony had a great leeway in defining the rules of the game as it were. It set the expectations for the other companies that entered the category. Also, the brand image was enhanced every time a competitor imitated Sony as it became an indirect way to accept Sony’s leadership position. Being the pioneer also offered Sony an opportunity to make more mistakes, test new ideas, and experiment with innovative concepts.
As can be seen, each of these three factors lead into each other thereby creating a virtuous circle. The combination of these factor pushed Sony into the exclusive club of iconic brands. But over the last decade, Sony seems to have lost the magic formula. It has been gradually sliding down from its high seat. Many reasons have contributed to Sony’s decline:

Unrelated diversification: An important and unique factor that has distinguished several Asian businesses from other Western business is the extent of diversification. Controlled and managed largely by business families, companies blow up into conglomerates that does business in very diverse and unrelated industries. Many Asian companies such as Samsung and LG that have become global forces to reckon with also started as bloated conglomerates. But these companies seem to have learnt the importance of focusing on core competence. As such, Samsung trimmed down its

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