...* Matsushita and sony are the two largest consumer electronics makers in Japan and in the world and both stretched their supply chains to their low-cost manufacturing neighbor which is CHINA to reduce cost. * Matsushitas 49 of 144 manufacturing subsidiaries are scattered in China. * 6 of 35 Sony’s factories abroad are located in China. * In 2002 when Matsushita was expanding their supply chain in China, Sony decided to shift some of its manufacturing business in China back to JAPAN. MATSUSHITA’s EMBARASSING LOSS * Matsushita is a electric industrial co., the largest home appliances and household equipment producer in the world. * They have competed with low priced Chinese counterparts in the international market. * Yukio Shohtoku who was responsible for Matsushitas overseas business, kept hearing bad news from overseas branches because Chinese price is becoming the world’s price. To stay in the market against those Chinese competitors, Matsushitas had to cut their profit margins. PROBLEMS * Matsushitas weakness was high cost. * To maintain its leadership in the market, Matsushita believed combination of Japanese advanced techniques/parts and Chinese low cost labor would enhance their competitive advantage in the world. * By doing that it helped them cut their products prices. However, Shanghai subsidiary “Panasonic” microwave over was 30 percent cheaper than its counterpart made in Japan. * However, in 2000 they Shanghai subsidiary...
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...Blu-Ray and HD-DVD: Betamax-VHS Format Wars Redux Contrast the strategies adopted for Betamax (vs. VHS) in the 80’s and Blu-Ray (vs. HD-DVD)? I. Strategies adopted for Betamax (vs. VHS) in the 80’s: Customers Large Retailers High end Stores Wealthier segment market Substitutors Sony Betamax Complementors U-Matic – JVC (VHS) Video rental - TVs Movie Studios Firms Suppliers Few electronic manufacturing companies Customers Mass Market Supermarkets Substitutors JVC VHS Complementors U-Matic – Betamax Video Rental - TVs Movie Studios Firms Suppliers Many electronic manufacturing companies (Hitachi, Matsushita…) II. Blu-Ray (vs. HD-DVD) nowadays: Customers HD TV Owner Follow Technology Substitutors Sony Blu-Ray Complementors Xbox – Toshiba – HD DVD – DVDs Hollywood Studios Websites with HD contents Gaming development ...
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...Sony Corporation Introduction In an economy that thrives thoroughly on technology and progression itself, there are many companies that have taken advantage of the opportunities that have been offered to them through science. Due to continuous development in technology, companies are being able to find their path in success through competitive products and service. And one of the Company that would strike on peoples mind in no time while talking about information technological products or be it digital equipments, it would be none other than Sony. Known for the best quality around the world and technological leadership, with its music, pictures, game and online businesses, the company is uniquely positioned to be one of the world’s leading digital entertainment brands, offering an outstanding portfolio of exciting multimedia content. History Established in the wake of Second World War 1946, May 7, as an electronic shop in a bomb damaged electronic department store by Masaru Ibuka. The company had an initial capital of $530 and 8 employees. The following year, he was accompanied by his colleague, Akio Morita and together, they founded a company called Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Corporation), and the main objective of the company, was to design and create innovative products which would benefit the people” .The founders were looking for Romanized name, and previously recommended using the initials, TKK as their company’s name...
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...Philips vs Matsushita Susan Cumpton PHL-3100 International Management April 11, 2015 Professor Ismail Throughout History Philips and Matsushita have charted different strategies as well as different organizational structures, and the outcome has been the same; success. With success comes adversity and both companies’ experienced major challenges in the beginning of the 21st century. Both CEO’s were forced to implement organizational restructurings as well as new strategies. How they would come out of was unknown as well as if their competitive nature with each other would continue. In 1892 Gerard Philips and his father founded a small light bulb company in Eindhoven Holland, at firs the ventured failed and they were forced to recruit Gerard’s brother Anton an excellent salesman. Philips focused on a singled product while larger electrical production companies raced to diversify. Innovation was a priority and Philips company policy was to keep up with modern technology and advancement in research. Philips labs developed a tungsten metal filament bulb that gave them finical strength to compete against it rivals.. In 1899 Anton hired the companies first export manager and the company was sell into markets in Japan, Australia, Canada, Brazil, and Russia. By 1900 Philips was the third largest light-bulb producer in Europe. By 1912 the lamp industry stated showing an overcapacity of companies so Philips started building sales organizations in the United States, Canada...
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...Philips Vs Matsushita Scm 1. A New Century, a New Round Scott Campbell - Christina Connolly - Maureen Stafford MBAM 619.11 March 30, 2009 versus 2. Foundation Founded in 1892 by Gerard Philips in Eindhoven, Holland Tradition of caring for its workers Innovation as a core strength One product focus on light-bulbs (initially) + Gerard’s technological prowess enable significant innovations Strong research vital to company’s survival Philips built its success on a worldwide portfolio of responsive national organizations 3. Foundation Founded in 1918 by Konosuke Matsushita in Osaka, Japan “ Seven Spirits of Matushita” and cultural and spiritual training are key First Japanese company to adopt the divisional structure “ One-product-one-division” Internal competition fostered among divisions Matsushita built its success on its centralized, highly efficient operations in Japan 4. Tangible and Intangible Assets Physical Assets: new labs Regulators: Common Market erodes trade barriers External Assets Financial Assets Suppliers Customers Employees: competitive/loyal Owners Brand Capital, Relationship Capital, Knowledge Capital Individual Capital, Team Capital Human Capital: strong experts Intellectual Capital Society Competitors: Sony, Matsushita, General Electric Organizational Fiscal Responsibility Boundaries Market Boundaries Society Boundaries Intangible Assets Supply Chain Boundaries Organizational Boundaries Tangible Assets 5. Tangible and Intangible Assets Physical Assets External...
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...Digital Rights Management 12/1/2010 Digital Rights Management 1 Introduction • Digital Rights Management (DRM) is a term used for systems that restrict the use of digital media • DRM defends against the illegal altering, sharing, copying, printing, viewing of digital media • Copyright owners claim DRM is needed to prevent revenue lost from illegal distribution of their copyrighted material 12/1/2010 Digital Rights Management 2 DRM Content and Actions • There are many capabilities covered by DRM Digital Rights Management Digital content: • Videos • Music • Audio books • Digital books • Software • Video games Possible Actions and Restrictions: • Play once • Play k times • Play for a set time period • Play an unlimited amount • Copy • Burn to physical media • Lend to a friend • Sell • Transfer to a different device 12/7/2010 Digital Rights Management 3 Early U.S. Copyright History • US Constitution, Article 1, Section 8 – “The Congress shall have the Power … To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries” • Copyright Act of 1790 – "the author and authors of any map, chart, book or books already printed within these United States, being a citizen or citizens thereof....shall have the sole right and liberty of printing, reprinting, publishing and vending such map, chart, book or books...." – Citizens could patent...
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...Cisco Shital Kavle Columbia Southern University Some people think marketing is marketing and whether you are marketing to consumers or marketing to businesses, you are still just marketing to people. But business-to-business (B2B) and business-to-consumer (B2C) marketing is different because, emotionally a person buying a product for themselves verses buying for their company is a very different. Building a strong brand that is able to set a company apart from other business is always an important job. Depending on who the intended client is determines how the company will build their brand. A brand is defined as a name, term, sign, symbol, or design, or any combination to identify goods and services of a seller or group of sellers. (2007). According to Walter Landor, founder of the Landor Associates, the world’s leading brand consulting firm; a brand is a promise that the company will provide satisfaction and quality. (Burgess, C) While many things in branding are the same, building a brand that supports brand to brand, B2B, or brand to customer, B2C, sales has slight differences. The table below summarize the differences between B2B marketing and B2C marketing. Business to Business(B2B) | Business to Customer (B2C) | Small, focused target market | Large target market | Relationship driven | Product driven | Brand identity created on personal relationship. | Brand identity created through mass communication like TV, radio, magazine advertisements. | Maximize...
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...Economics of Competitive Strategy Professor R. Preston McAfee Apple Computer Inc.: Digital Connectivity in the Age of the Maturing PC 8 April 2002 Group : Alp Buyukuygur Yuma Maris Amit Bhardwaj Brief Background Apple Computer is a major developer, manufacturer, and marketer of personal computers and peripheral products for sale primarily to the business, creative, education, government, and consumer markets. Apple also sells operating systems, utilities, languages, developer tools, and database software. California-based Apple Computer aims its colorful iMac (desktop) and iBook (laptop) computers at the consumer and education markets. It targets high-end consumers and professionals involved in design and publishing with its more powerful G4 portable and desktop computers. Apple also makes publishing and multimedia software, and offers Internet services such as Web page hosting. The company's FileMaker subsidiary makes database software. Once the world's top PC maker, Apple Computer has been relegated to niche status in a market dominated by "Wintel" machines (computers using Microsoft Windows software and Intel processors). Macintosh computers (Macs) forgo the Intel Pentium for processors made by IBM and Motorola. Apple has offered unique designs such as the colorful iMac that distinguish its computers from their competitors. Looking to attract customers into "the era of the Digital Lifestyle," Apple has conducted a marketing campaign that casts Macs as the centerpiece...
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...Chapter 1 expanding abroad: motivations, means, and mentalities Case 1-1 Cameron Auto Parts * Alex Cameron got the family biz when graduated in 2001, when the American economy fell into a recession * History * Auto Pact, big three ship car parts between Canada & US, with tariff free * Cameron focus on small engine parts and auto accessories * Car Sales dropped in 2000, because declining North America and entry of Japanese * High pressure for modernization and cost reduction * Operational survival: cut workforce, overtime, part-time, subcontracting * Recovery and diversification * The short-term future seemed positive, but the popularity of Japanese car forced it to diversify * Working as an OEM Cameron did little to be innovative * Alex brought in a team of designers, concentrating on developing products with a wider ‘non-automotive’ market appeal * The first year no progress, Alex lured away a key engineer from the Canadian firm, and mid-2003, developed its own line of flexible couplings * Marketing the new product * Hired eight field sales representatives, stress product quality, service and speed of delivery, but not price. * Financing plant capacity * Increasing sales of flexible couplings required a new separate plant, but the financial position is not strong enough to support it * Foreign markets * Took a European Patent * A licensing opportunity ...
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...Executive Summary: XM satellite is a newly established company that has the potential and the ability to become leading satellite radio service provider in United States. At the time of the case, the demand for high quality, ad-free and mobile radio had a great potential and XM along with Sirius received a great opportunity to enter into the untapped market. XM’s only significant competition threat was Sirius. Both Companies were trying to capture market share from one another by creating superior customer access channels and build a brand image. These could have been done through retailers and strategic partnerships with radio producers for home and car markets. The home product brands include Sony, Pioneer, Matsushita and Car audio products include Sony, Pioneer Alpine, Delphi and Visteon The major issue for XM was how to market, how to price and what will be the value proposition. Since there were only two companies in the market the pricing of the service could significantly shift the demand and estimated/desired earnings. In order to thoroughly analyze the problem and seek viable alternative solutions I will try to list some of the key marketing issues. Key marketing issues include but are not limited to: * Creating brand awareness: In my opinion it is very important to mention that potential future customers are only the ones who are aware of the brand. The creation of brand awareness would be complicated given the company’s value proposition to keep ads off the...
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...Television History - A Timeline 1878-2005 1878 William Crookes confirmed the existence of cathode rays by building a tube to display them in. 1897 German scientist Karl Ferdinand Braun constructs the cathode ray tube scanning device. 1900 Russian Constantin Perskyi introduces the word "television" at the 1st International Congress of Electricity at the World's Fair in Paris. Souvenir trading cards are sold at the same fair, two predicting color television and news radio in the year 2000. 1905 Philipp Lenard wins the Nobel Prize in physics for his research on cathode rays. 1907 A.A. Campbell Swinton in England and Boris Rosing in Russia independently propose an electronic scanning system in which a cathode ray tube could produce an image on a phosphorus-coated screen. 1923 Vladimir Zworykin, working for Westinghouse Electric, patents the iconoscope, a television transmission tube and in 1924, patents the kinescope, the receiver tube. 1925 In England, John Logie Baird demonstrates the first moving television pictures via a mechanical system based on Nipkow's disk; they were recognizable human faces in 1925 and moving objects in 1926. He had shown a still image of Felix the Cat in 1924. 1927 Philo Farnsworth transmits the first electronic television image and applies for a patent on the first complete electronic system, the Image Dissector. The first practical demonstration of television is arranged by Bell Labs and AT&T, when Commerce Secretary Herbert...
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...The Art of Standards Wars Carl Shapiro Hal R. Varian S tandards wars—battles for market dominance hetween incompatible technologies—are a fixture of the information age. Based on our study of historical standards wars, we have identified several generic strategies, along with a number of winning tactics, to help companies fighting today's—and tomorrow's—battles. There is no doubt about the significance of standards battles in today's economy. Public attention is currently focused on the Browser War between Microsoft and Netscape (oops, America On-Line). Even as Judge Jackson evaluates the legality of Microsoft's tactics in the Browser War, the Audio and Video Streaming Battle is heating up between Microsoft and RealNetworks over software to deliver audio and video over the Internet. The 56k Modem War of 1997 pitted 3Com against Rockwell and Lucent. Microsoft's Word and Excel have vanquished WordPerfect and Lotus 1-2-3 respectively. Most everyone remembers the Video-Cassette Recorder Duel of the 1980s, in which Matsushita's VHS format triumphed over Sony's Betamax format. However, few recall how Philips's digital compact cassette and Sony's minidisk format both flopped in the early 1990s. This year, it's DVD versus Divx in the battle to replace both VCRs and CDs. Virtually every high-tech company has some role to play in these battles, perhaps as a primary combatant, more likely as a member of a coalition or Prepared for the Cnlifornia Management Review.Jh'is material...
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...vantage//~‘L~ FIRST-MOVER ADVANTAGES Marvin B. Lieberman David B. Montgomery’ October 1987 Research Paper No. 969 1The authors are, respectively, Assistant Professor of Business Policy, and Robert A. Magowan Professor of Marketing, at the Stanford Business School. We thank Piet Vanden Abeele, Rajiv Lal, Mark Satterthwaite and Birger Wernerfelt for helpfiul discussions on earlier drafts. The Strategic Management Program at Stanford Business School provided financial support. / ~‘N ~ Abstract This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also considered. INTRODUCTION What, exactly, are first-mover advantages? Under what conditions do they arise, and by what specific mechanisms? Do first-movers make aboveaverage profits? And when is it in a firm’s interest to pursue first-mover opportunities, as opposed to allowing rivals to make the pioneering investments? In this paper we examine these and other related questions. We categorize the mechanisms that confer advantages and disadvantages on first-mover firms, and critically assess the relevant theoretical and empirical literature. The recent burgeoning of theoretical work in industrial economics provides a rich set of models that help make our understanding of first-mover advantages more precise. There...
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...FIRST-MOVER ADVANTAGES Marvin B. Lieberman David B. Montgomery’ October 1987 Research Paper No. 969 //~‘L~ 1The authors are, respectively, Assistant Professor of Business Policy, and Robert A. Magowan Professor of Marketing, at the Stanford Business School. We thank Piet Vanden Abeele, Rajiv Lal, Mark Satterthwaite and Birger Wernerfelt for helpfiul discussions on earlier drafts. The Strategic Management Program at Stanford Business School provided financial support. / ~‘N ~ Abstract This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also considered. INTRODUCTION What, exactly, are first-mover advantages? Under what conditions do they arise, and by what specific mechanisms? Do first-movers make aboveaverage profits? And when is it in a firm’s interest to pursue first-mover opportunities, as opposed to allowing rivals to make the pioneering investments? In this paper we examine these and other related questions. We categorize the mechanisms that confer advantages and disadvantages on first-mover firms, and critically assess the relevant theoretical and empirical literature. The recent burgeoning of theoretical work in industrial economics provides a rich set of models that help make our understanding of first-mover advantages more precise. There is...
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...mobile phones. A mobile phone can function as a camera, PDA and has many other features such as gaming functions and access to the Internet. Based on 3G, broadband is also paving the way for video-telephony and TV viewing. Characterised by continuous change and innovation, the mobile phone industry then sets an exciting stage for devising an innovation strategy. Our focus will be on mobile phone manufacturer LG. LG Electronics, Inc. is in fact a consumer electronics company with two other business units (Digital Display & Media and Digital Appliances), besides the Handset unit we will focus on in our report. On a global scale, LG’s handset division is 5th in terms of market share based on handset revenue, behind Nokia, Motorola, Samsung, and Sony Ericsson (see Appendix 1). Despite not being in the ‘Big Four’, LG’s market position is that of a strong challenger considering the many other ‘me too’ competitors that exist (e.g. NEC, Sanyo), but who fail to register in consumers’ minds. LG’s achievement can be seen to be mainly due to the success of their ‘Black’ series with popular models such as ‘Chocolate’ and ‘Shine’. Industry experts predict that if LG can replicate this success, they will eventually be able to surpass their main competitor Samsung (Screenshots, 2007). Considering the importance of technological innovation for LG’s future success, this essay aims to support the company in achieving a better market position by means of devising an innovation strategy for the global...
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