Consumer Electronics Industry

Consumer Electronics IndustryFailure of Japanese Giants Sony, Panasonic (Matsushita), Sharp, JVC, Toshiba , Hitachi Sony, Panasonic and Sharp combines loss US$ 20 billion in 2011Why did they fail?Changing Trends in the Industry Lack of Radical Innovation Changing Consumer Mindset Globalization and new emerging markets Changing Industry Trends Analog to Digital Walkman to IpodBubble box TV to Flat Scree TVHardware to software

Changing Industry Trends Manufacturing - it easier to produce goods in a uniform way with off-the-shelf parts, discounting the manufacturing skill that once made Japan an industry forceHardware a commodity -Software decides the success Even Television will be dominated by software (Google TV and Apple TV)Camera , E-book reader (Librie by Sony)Innovation Continuous improvement rather than innovation- in an industry where the technology changing fastEven the few radical innovations were driven by top management only Changing Consumer MindsetIgnored what consumer wantsVideo format warsSony vs JVA (Betamax Vs VHS)Sony Vs Toshiba (Blu-ray vs HD DVD)Introducing LCD and LED TVs

Globalization and new emerging markets Ignored the consumers from emerging markets Adopting the Japanese standards for mobiles ignoring the global consumers Refusal to tie-up with network operators Culture Main ReasonPower Distance innovation and promotionsUncertainty Avoidance innovation Arrogance about their achievement- OLED TVs

Nokias fallColor Touch Screen PhoneColor touch screen phone in late 90s "I was heartbroken when Apple got the jump on this concept," says Mr. Frank Nuovo, Nokia's former chief designer. "When people say the iPhone as a concept, a piece of hardware, is unique, that upsets me."

Nokias fallOVI Store OVI Store was announced in August 2007

Nokias fall Culture Smart phones were not given a push after the merger in 1996Too much focus on cost and ruggedness operational excellence hardware Symbian and Meego fight for resources Samsung Bringing Outsiders in slowly initially bringing ethnic Koreans, then non-Koreans Sending Insiders Out