Sony: Betting It All on Blu-Ray

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Sony is widely known company for introducing new technological products into the market. In 1976, they found themselves in a technological war with VHS, in which their product, Beta, was finally defeated after eight years of struggle. Now, they find themselves in another technological battle in a war named Blue Ray vs HD DVD. Even thought there are many market giants backing up both these products, main companies behind them are Sony for Blue Ray and Toshiba for HD DVD. This technology war results has been fluctuated through the past couple of years as they battled for factors such as price, capacity, quality, availability of videos in these technologies. However, some expertise think that this is a meaningless war since data storage and video products are traveling to a new era, where these files are available in non physical elements. Even though many famous companies have helped these products in major ways, as of now, it is impossible to predict a front runner with the war being equally poised. However, the survival of this war is unpredictable.

Classify the high-definition DVD market using the product life-cycle framework. Based on this analysis, what objectives and strategies should Sony and other competitors pursue? Are any of the competitors deviating from this formula? In the product life-cycle, a product goes through different stages such as product-development, introduction, growth, maturity and decline. During product development, there are no sales and the company investment expenses increase after which it leads to the introduction stage. This is a period of slow sales growth as the product is introduced to the market. Also, profits are minimal due to expenses of product introduction to the market. Growth is a period of rapid market acceptance and increasing profits. During this period the investments made on the product pays off. In maturity stage, sales growth slows down since the product has achieved acceptance from many potential...
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