Team 2: SONY eReader

Alyssa Walsh Amanda Arvin

Mark LeaverXavier Ortiz

Mission/Vision/Wining

Mission-“Make” “Believe”

Vision -Consumer convenience, Affordability

Winning-Preferred eReader in education

Sound Strategy

Target students Special Applications Maintain Low-Cost Ease of use Educational sector Young consumers Continuous use

Customers for life Elementary schools Middle Schools High Schools Higher Education Exclusive content

Updated Value Curve

Refined strategy Sony Reader as a complementor Carve a new market Create innovations, import ideas, and

eliminate features

Low-Cost Leadership/Focused Organization with the

ability to produce a good or service at a lower cost then competitors

Sony is a Low-Cost leader-Already established distribution channels-Customer base (brand loyal)-Less capital and human resources for expansion

Organization with the ability to be a low-cost leader in a narrow market segment

Sony: considered a focused low-cost leader

-Economically priced e-Reader device market segment

-One of the lowest price e-Reader devices in market

Focus on being a complementor

Differentiation/ Focused Organization with a

uniqueness that customers are willing to pay extra for

-Gain greater market share-Higher profit margins Criteria required for

successful differentiation-Uniquely satisfy one or more

needs that are valued by buyers-Customers must be willing to pay

higher prices Coca-Cola and Pepsi

Unique products are targeted to a particular market segment or arena

Greater differentiation = smaller target segment

-Less individuals with money to purchase product

Mercedes Benz:-Imports only its most expensive top-

of-the-line models-Focused differentiator marketing to

most affluent industry-Possible future plans for Sony

s v

Production and Distribution

Skills

R&D (Innovation)

Efficient Production and

Distribution

New Products

Decreased Cost, Higher Quality

Increase in Sales

Decreased Production and

Distribution Costs

Customer Satisfaction

Profitability Balanced Score Card

External

Objectives Measures Targets Initiatives Main Competitor in Market Market Share >40% Market Share

Excellent Customer Service Customer Surveys Effectively Manage all

Complaints or Suggestions

Online Anonymous Survey

Image Brand Index

Internal Business Processes

Objectives Measures Targets Initiatives

Quality Controls, Inspections,

and the # of returns/replacements.

Decrease # of Defected Products

Productivity # Products Manufactured per Day

Target set before each financial period.

Bonuses for Plant/Line Managers

Reduce Costs Cost of Production Minimum

Incorporate other Depts in Production,

Distribution, and Retail

Balanced Score Card

Learning and Growth Objectives Measures Targets Initiatives

Technolgical Innovations # Additional Features,

Improvements, etc

Target set before the R&D process for financial period.

Market Research

Skilled Employees Employee Knowledge Increase Employee

Knowledge (Company, Products, Operations

Employee Training

Financial

Objectives Measures Targets Initiatives

Profitability Net Income Steady % Increase

Annually

Reduce Costs, Maximize Sales (R&D and Marketng Effort s)

Growth in Sales Net Sales % Goal Set Before each financial period. New Retail Locations

Increase Customers # of Customers A steady % increase Marketing

Balanced Score Card

VRINE

Valuable (4) Rare (1) Inimitable (1) Non-Substitutability (1) Exploitability (5)

PESTEL

Political (10) Economic (9) Sociocultural (9) Technology (8) Environment (4) Legal (5)

Porters 5 Forces

Rivalry (2) Threats of New Entry (4-5) Supplier Power (2) Buyer Power (3) Threats of Substitutes (4) Complementors (NA)

Profit Pool

Entry into new industry Supply Chain Purchasing, production, distribution Functional break-down of revenue

generation

Conclusion/ Wrap Up

Be the GO-TO eReader Focus on educational sector Market to younger consumers Consumers for life Exclusive Context only with Sony Different Models