REAL WORLD ALLIANCE PROPOSAL: SONY JOINT VENTURE WITH XIAOMI
Table of Contents
1. Introduction
2. Strategic Fit & Motives
3. Partner Selection & Management
4. Governance & Structure
5. Industry Analysis (Porters 5 Forces)
6. Performance Management
7. References
1.Introduction (Brief)
The aim of this report is to establish the feasibility of a new joint venture between Sony & Xiaomi within the telecommunications industry. The venture will be focused on sharing technologies, risks & distribution channels and will proposes a 50/50 equity joint venture between Sony and Xiaomi, to form Sony Xiaomi LTD. The new entity will focus on enhancing profitability and market share for both companies with product focus on smartphones.
2. STRATEGIC FIT & MOTIVES
SONY: Sony has been experiencing a downturn in the mobile industry with profits consistently reducing over the last few years. The volatile nature of the Telecommunications industry and intensity of the competition are some of the reasons for this situation. The mobile division has been affecting Sony’s overall business structure and to address this negative trend the company is looking to ally with a partner in order to minimize risks and capture profits (Sony.net, 2016). Xiaomi will be a good strategic fit as they have experienced enormous growth especially within the Chinese market. They have a well-established customer base, and their smartphones are selling extremely well. A partnership with Xiaomi
I decided to do my research on Sony due to the advancement in technology and the competition between companies such as Microsoft, Apple, and Sony. I have been around long enough to know about Sony’s products but the real reason that attracted me to them for this essay is because I actually believe that they are having a negative trend. I am starting to see less Sony items in stores and I haven’t really heard much about them. Whereas companies such as Apple are constantly being talked about and you often see people walking around with some type of apple product in their hands. Today we are going to research Sony through a horizontal analysis and through different ratio analyses. Let’s see what we find!
This case is about Nora, one of the leading suppliers of telecom solutions in Malaysia. The case involves a possible joint venture with Sakari, the leading manufacturer in Finland of mobile phones and telecom systems. There is a large potential in the future development of telecom facilities in Malaysia and the to enterprises have discussed a joint venture
Apple and Samsung are the major competitors in the smartphone field. We would, like to discuss why they’re leading and conclude which one is better. In the electronic industry these two companies fight are considered as the highest massive ever. They mainly clash for brand image and brand reputation but any consequences regarding this fight, the impact should be faced by both these companies in terms of brand reputation loss and also the loss of huge amount of money over the litigations We would like to discuss the following,
Sony Corporation was founded in 1946 and was originally named Tokyo Telecommunications Engineering Corporation. That name was later changed to what we now know as Sony in 1958. Ever since Sony became a corporation they always envisioned themselves as a company who “creates new markets with communication technology” (McPhail, 2014, p. 159). Little did they know when Sony started out how popular the brand would become. In 1988, as Sony was expanding, they acquired the company Columbia Pictures for a whopping $4.9 billion. They wanted to grow their US media empire and they did just that with Columbia Pictures. This sort of deal was the first of its kind in the 1980’s with it being between a Japanese company and a Hollywood studio (Richter, 1989).
Due to the financial downturn and the emergence of new devices in the global handset
As we all known, Sony and Matsushita are two of the largest consumer electronic makers in Japan or even in the world. And in this reading, it points out the different strategies Sony and Matsushita use when they were facing the fierce competition in China ----- Matushita was accelerating its pace on stretching the supply chain in China while Sony unexpectedly decided to shift some of its manufacturing business in China back to Japan. In this article, I will discuss the reasons that lead them to make different decision as well as analysize the advantages and the disadvantages of their decision.
Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from
Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.
Sony has many products and started to branch out. Sony has mostly started to manufacture appliances and electronics. Even thou many new different products may arise, Sony can manage and maintain their quality.
(1) How did DoCoMo create distinctive value at low cost? How did DoCoMo combine the strength of the mobile phone and the PC-Internet? How did the value curve of DoCoMo’s i-mode differ from those of the mobile phone and PC-internet?
Executive Summary: Sony 's present fiscal challenges are tied into its corporate society which were expressed in excess of 30 years back. With such an expansive multinational company, more noteworthy arranging and more utilization of methodologies ought to be sought after. Sony could begin with the usage of another statement of purpose, with benefit and profits of the organization fixing all the more nearly too ordinary operations. Inside, the four compels, the administration, the creators, the creation and the showcasing ought to attain better correspondence and collaboration. Union and collaboration between contenders ought to additionally be eagerly sort after to make guidelines in new fields. Sony ought to go for being the pioneer as opposed to being the dissident. With respect to cost cutting, Sony ought to genuinely consider setting up operations in other Asian nations keeping in mind the end goal to exploit the shabby work and the sprouting markets. At long last, enhancement, as opposed to seeking after the quick changing and effortlessly imitated shopper products market, Sony ought to utilize its innovative expertise for top of the line business and office gear.
Inorganic Growth - Xiaomi should look to grow inorganically as much as possible. With a wide range of startups happening in technology & mobile content, Xiaomi can look to ideally invest in these companies and look to add innovative features and services from these companies to their products. With recent acquisitions of Segway by Ninebot (Xiaomi Backed), it shows Xiaomi’s serious intentions of expansion by means of acquisitions in terms of inorganic growth. FI would be critical in Xiaomi’s plans for further acqusitions as it looks to acquire them in India.
Nowadays, it takes just a few minutes for a customer to make research and evaluate competitors. Customer reviews provide others with valuable insights. The point here is that this decreases switching (transaction) costs for customers to switch from Sony to Apple, for example, and vice versa. As it was mentioned earlier, customers are sensitive to prices and price elasticity of demand is high. The most important thing that matters to customers is price, not quality, because all of big players offer very similar products in terms of design and functionality. More customers prefer buying online, and this pushes down switching (transaction) costs even further. To summarize, buyers have the power to influence Sony directly because they can easily switch to competitors; but also indirectly, through exchange rates, as Sony is all about international
Motorola is a global communications leader that is divided into six business units: semiconductor products sector (SPS), broadband communications sector (BCS), integrated electronic systems sector (IESS), commercial, government and industrial solutions sector (CGISS), global telecom solutions sector (GTS), and the personal communications sector (PCS). Motorola was formed in the late 1920’s by two brothers; Paul and Joseph Galvin, since that time the company has undergone numerous changes. Today they are located in about 70 countries and are still one of the top electronic manufacturers.
Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry.