- Sony is a well-recognized and respected brand with consumers, and its products cover a wide spectrum of the entertainment and industrial markets
- new entrants are threatening sony’s position due to the industry shift from analog to digital technology. In the analog era, complicated functionality of electronics products was made possible through the combination of several complex parts, and Sony held a competitive advantage in the design and manufacture of those parts as a result of its accumulated expertise. In the digital era, however, complicated functionality has become concentrated in semiconductors and other key digital devices. Since, these semiconductors and key devices can be mass produced, they have become readily available to new market entrants, and the functionality that once commanded a high premium has become more affordable. This has led to intense price erosion in the consumer audio visual products market. Also, Sony is exposed to the pressure of declines in selling prices as a result of a concentration of market share among a limited number of dealers and retailers.
- In the pictures segment, the DVD format is now 11 years old and is showing signs of maturation. To meet these challenges, Sony is working to produce and acquire a diversified portfolio of motion pictures with broad worldwide appeal.
- Sony is confronted by changes in the financial services industry as a result of the deregulation and liberalization of additional insurance premiums, postal privatization, the complete lifting of the ban on the securities intermediary services by banks and others.
Even within the electronics division, there is an enormous variety of products and specialized markets. • Audio - Sony has lost its dominance in the lucrative market of portable audio. Its Walkman line of cassette and CD players has been superseded by a new wave of...