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SONY E-READERTEAM #5
Taylor KuceraCassandra Pastore
Nicole CoumouKara McDonald
Pavel Lubov
About Publishing Industry:Industry is changing from paper to electronic
format.
About Us:Leading manufacturer of audio, video,
communications and information
technology products for the consumer and
professional markets, making Sony one of
the most widespread entertainment
companies in the world.
Our Mission:Provide our customers with a variety of
innovative products, content and services world-wide.
Pursue the dreams of our customers.
Adapt unique products to individual needs of varying demographics by bringing to our customers advanced technology at economic value.
Our Vision: Generate the largest market share by becoming
the leading provider of the electronic book industry.
Partner-up with diverse publishers.
Provide customers with intellectual content at affordable prices.
Offer customers resourceful and sophisticated technology useful for everyday life.
Goals:Focus on electronics, entertainment and
financial services sectors. Represent a wide range of business.
Remain globally unique.
Aim to emotionally touch and enthuse customers.
Four Strategic Priorities:Consistent profitability in our core hardware
business.
Innovative hardware, software and services.
New customers and geographies.
Environmentally conscious products and processes.
About the Sony E-reader:Touch screen
E-ink display
Pictures, audio, drawing pad
Make notes, highlight documents
Lacks: wireless connection, text to talk feature, back
lighting
E-reader Market:
Winning to Us:
Our target is to reach a 40% market share within the
e-reader industry.
Competition:Amazon, Kindle
Samsung, Edge
Barnes & Noble, Nook
Generic Strategies: Scope of Arenas
BROAD:
NARROW:
ECONOMIC LOGIC Low-Cost Leadership Differentiation
Cost Leadership: PUBLISHERS
Differentiation:APPLE I - PAD
Integrated PositionEdge e-reader
Stuck in the MiddleNet book
Focused Cost Leadership: Focused Differentiation:
SONY E-READER AMAZON KINDLE
VRINEVALUABLE: Electronic versions are cheaper to create
than printed books. Published quicker than standard books. Versatile than traditional books.
RARE: Fairly new market. Not recognized by many consumers. Capacity to hold up to 2,000 electronic books.
INIMITABILE: Many other styles and brands available (ex: Amazon’s Kindle)
Some versions provide similar applications. Competitors in the market with similar
products.
NON-SUBSTITABILITY: E-books substitute standard printed books. No other product on the market that provides
electronic versions of books than e-readers.
EXPOLTABLITY: Versatile to customers, can be used in everyday life.
Anyone can use it. Currently on the market.
PESTEL
Five-Forces
Degree of Rivalry
HIGH
Supplier Power
Low -
Medium
Threat of New Entrant
(and Entry Barriers)
HIGH
Threat of Substitutes
Medium -
HIGH
Buyer Power
Low - Medium
Complements
- Computers
Profit Pool
Why we will be successful:
Simplicity of product
Existing alliances (raw material providers,
publishers)
Brand loyalty
Price differentiation
Conclusion:
Establish alliances with publishers.
Stick with simple and easy to use device.
Add additional features. (online book store, wireless feature)