Case study: Can Sony Regain Its Innovative Edge? The OLED Project
Why did Sony push back introduction of the OLED television? What was the advantage in waiting? What were the drawbacks? Was there a threat of moving to market with new technology too fast? How might the delayed introduction affect Sony’s reputation among consumers, enthusiasts, and Sony’s own R&D personnel? Sony holds the view that the OLED technology provides a markedly improved picture and it will be the basis for the next generation of television. At the same time, even very small televisions using the new OLED technology are significantly more expensive than LCD sets, and Sony fears that high prices could cause the limitation of sales. In recent years, Sony has been struggled and wants to ensure that it’s back on more sound footing before making the investment necessary to successfully commercialize the OLED technology now. In making this decision, Sony is taking the risk that it will lose the advantages that could come with being the top in the OLED market, also gain extra benefits associated with being an innovator in the technology industry. (Meanwhile, other companies such as LG Electronics and Samsung are making their own OLED televisions, and positioning themselves to gain first mover advantages.)
2. What competitive threats does Sony face? From which companies and geographic regions? How does Sony stack up against these competitors? Sony has pressure put by LG Electronics and Samsung, also Panasonic is developing OLED models. In addition, these companies are focusing on further improving LCD televisions. In fact improvements in LCD technology are now a threat to OLED technology because the new LCD televisions have substantially improved picture quality, without the high prices carried by OLED televisions. To against these competitors, Sony can:
1): Lower the costs. To acquire a wider profit margin, Sony should hasten the pace in restructuring its music business...
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