Sony Playstation 3 Case Study

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Page COMPANY BACKGROUND 2 SWOT ANALYSIS 3 STRENGTHS 3 WEAKNESSES 4 OPPORTUNITIES 6 THREATS 7 Threat of Competitor 7 Threat of Buyer 7 Threat of Suppliers 7 Threat of Substitutes 8 Threat of New Entrance 8 Other threats 8 PROBLEMS / ISSUES 9 Lose of Market Share 9 Unethical Business Strategy 9 Product Disadvantage/Defect 10 Expensive Product, High Manufacturing Cost and Negative Profit 11 Differentiation 12 Over Confidence 12 Longer Software Development Cycle 12 Heavy Criticism from Media 13 SOLUTIONS AND RECOMMENDATIONS 14 Market Strategy…show more content…
One of Sony’s biggest weaknesses is their reluctance to adapt the competitor’s technology. This can be seen in the case of Betamax where it has more quality than VHS but shorter recording time. Customers prefers longer recording time and chose VHS. Finally Sony abandoned Betamax and adapts JVS’s VHS technology. Same scenario happened with Walkman that loses out to Apple’s I Pod. Sony was also reluctant to license out its technology to competitor and therefore their product was produced and marketed by Sony only where else their competitor licensed out their product and produced and marketed by various parties. Another downfall to the PS3 is the price. The Sony PlayStation 3 was the most expensive console ever launched, with a price tag of $600, or $500 for a stripped down version with smaller hard drive and no wireless module. In fact, the basic console cost Sony almost as much to make as the premium model. Despite Sony’s willingness to subsidize each console purchase, many users complained that the PS3 cost $200 more than the Xbox 360. Besides, the product uses the Blu-ray format which means that the games sold for PS3 also expensive. Sony could not produce the planned number of PS 3 consoles within time. Most people were disappointed because of delayed in launched of PS3. Sony also unable to manufacture the anticipated one million consoles

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