Strategy, Context, and the Decline of Sony

Strategy, Context, and the Decline of Sony Sometimes it’s useful to be reminded that a great strategy is only great in context. From the early 1980s and into the 90s, Sony’s was great. The unrivaled master of the consumer eleCTronics world, its name was synonymous with cutting-edge technology, sophistication, and desirability. people had a colleCTive […]

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Strategy, Context, and the Decline of Sony

Sometimes it’s useful to be reminded that a great strategy is only great in context. From the early 1980s and into the 90s, Sony’s was great. The unrivaled master of the consumer eleronics world, its name was synonymous with cutting-edge technology, sophistication, and desirability. had a colleive vision back th of a thrilling yet humane future, and Sony’s hyper-capable, sly fussy gadgets were its clearest expression. It was much more than just the Walkman and the Trinitron—everything the company made was of impeccable quality, satisfying to hold and intricately detailed in its funionality.

That last statem is still true today, but everything else has changed. Sony still makes exquisite produs, but fewer and fewer get excited about them. The strategy address recly dered by the corporation’s new CEO, Kazuo Hirai, earned press coverage that verged on mocking, with The Journal noting that the brand’s “once-sterling cachet has deteriorated,” and The New York Times going further, placing Sony in “a fight for its life,” and accusing it of “an astonishing lack of ideas.”

Both observations are corre, but they only hint at the underlying question: why is the strategy that once served Sony so well now failing so badly? It’s not as if its cameras now take fuzzy piures or its boom boxes fall apart after three months. And the market for consumer eleronics is r than it’s ever be. The Times article rightly observes that Sony’s curr produ line is owded and confusing, but offering customers a wide array of choices was fundamal to Sony’s success in the past. What changed?

Part of the shift is technological. Apple’s iPhone—the produ oft desibed as getting everything right that Sony got wrong—only comes in one curr model and two colors, yet it’s tremdously customizable. With so much of the experice coming from the software, not the hardware, consumers ar’t using a produ designed for them; it was designed by them. This is an especially powerful offering because it replaces the single mom of instant gratification—buying the perfe camera, TV, or phone—with dozs of such moms. Every time they install an app or download a song, users are getting a customized experice with an emotional impa on par with the one-time purchase of a produ.

This suggests a more fundamal explanation: consumers today care more about the experice, but Sony is still ed on the produ. It’s gott trapped by its own past success. In the early 80s, simply dering technology in a usable form was still the biggest challge, and Sony got it right before anyone else. It had an astonishing ability to find the next technical hurdle—a brighter TV, a smaller tape player, an integrated camcorder—and leap over it with grace, before its competitors ev thought to try. In an industrial, produ-oried economy, this was ough. Every year saw new produs with unpreceded capabilities. As long as it could do something new, we didn’t seem to care what kind of experice we had using it. Plowing through 70-page manuals and fussing with Dolby II and Metal/Non-Metal switches was just part of the deal.

In the experice economy, these expeations are reversed. Technology is a giv, and the question of “what are the specs?” has be replaced by “what is it like to use?” Sony’s expertise at making the next great thing has be matched by companies like Samsung and LG, and soon ough, they’ll all be caught by ineasingly sophisticated Chinese manufaurers. Without modifying its business model, Sony has be left behind by a world that’s changed its relationship with technology.

Playstation shows its ability to der a good experice through an integrated ecosystem of produs and cont. But the Playstation is now just another platform struggling to keep up with innovative alternatives like the Wii, Xbox, and Kine, and it’s be years since Sony’s other divisions unveiled a real game changer.

What’s missing is the strategic vision to hasize the dery of powerful and resonant user experices. Mr. Hirai acknowledged several times the need for the company to change, but the goals he stated were still hardware ed: sell this many smartphones, that many camcorders. The user is still missing in this equation, as is a sse of what Sony stands for, and what its vision is for an integrated experice. For Sony, it may be too late.

mobile operating system.

There’s nothing magic about innovation, just as there’s nothing magic about technology. Both are hard work, but as Sony has shown, all the hard work in the world won’t matter if you’re working toward a strategy that was framed for an another era.

Strategy, Context, and the Decline of Sony


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Happiness is for those who plan well and pursue. A profound among us have been proven those who have true dream to live for likely REALIZED IT. It is just simply the person working toward the DREAM days and night until accomplishment. There is a phrase of efficiency a head of you. Steps and obstacles at first seem tremendous. However, just with some times those difficult steps and challenges are so easy performance for you. There are also plenty of tools including VISUALIZATIONS and helps are around you.

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StRAtegy, Context, and the Decline of Sony Sometimes it’s useful to be reminded that a great stRAtegy is only great in context. From the early 1980s and into the 90s, Sony’s was great. The unrivaled master of the consumer eleCTronics world, its name was synonymous with cutting-edge technology, sophistication, and desiRAbility. People had a colleCTive […]

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How To Really REALIZE DREAMS COME TRUE?

Happiness is for those who plan well and pursue. A profound among us have been proven those who have true dream to live for likely REALIZED IT. It is just simply the person working toward the DREAM days and night until accomplishment. There is a phrase of efficiency a head of you. Steps and obstacles at first seem tremendous. However, just with some times those difficult steps and challenges are so easy performance for you. There are also plenty of tools including VISUALIZATIONS and helps are around you.

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COVID-19
HOW TO DEFEAT DEADLY CORONAVIRUS EVERY TIME?

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