Strategic group analysis of Sony and digital camera manufacturers

sony cyber shot-DSC-W300 BLACK

Strategic Group Analysis

The Sony Corporation operates in a highly dynamic industry, characterized by numerous and rapid changes, most of them due to technological advancements. This means that both Sony and its competitors must quickly adapt to the emerging requirements. The company's top competitors and the components of its strategic group include Japanese Panasonic Group, Dutch Phillips Electronics and Japanese SANYO (Hoovers, 2009). These companies manufacture similar products (such as digital cameras, television sets, play stations or other numerous electronic appliances with applications in all entertainment and leisure, professional activities or day-to-day chores) and address the same target market. The primary strategy used to overcome competition is that of differentiation. However, with the technological innovations, most products came to reveal similar features. As a result then, the differentiation strategy based on product characteristics becomes more and more difficult to reap on. Consequently, Sony and its competitors have made increased efforts to differentiate in terms of cost.

The Sony Corporation has developed strategic partnerships with various providers that insure it with a timely delivery of high-quality components is cost-effective conditions; other endeavors have also been launched to further reduce expenditures. This allows the organization to reduce the retail price of their items and better attract the attention of the customer base. However the demand for the Sony products varies based on independent features, it has generally been observed that "the demand curve for Sony will be downward sloping, implying that more sets will be sold as the retail price is reduced" (Nellis and Parker, 2006)

2. Product Life Cycle

With the numerous advancements that are being made in Information Technology, the product life cycle of various items has suffered drastic modifications. The most eloquent example in this sense is given by the decrease in product life duration as newer technologies emerge and the best product of last year's is today outdated. The players in the electronics or telecommunications industry suffer greatly from this as they must continually strive to advance their products, services and technologies in order to keep up with the new emergent demands. This then gives the rapid and dynamic rhythm of the industry and explains the modifications in product life cycle.

Historically, the PLC of digital cameras required massive investments in development, launch onto the market, growth, support at maturity stages and revival in decline. Today, most of the investments are made in development, introduction and sales. Sony and its competitors understood the futility of trying to support a declining product in an era of rapid technological innovations. As such, most of the financial resources and time is spent on research and development of newer technologies and their integration within products that will further increase customer satisfaction.

In placing their new digital camera, the marketing team at Sony has to consider a pivotal piece of information - the PLC of digital cameras has been rethought to focus more of market, brand and technology, rather that the product itself. "The development of digital cameras (a significant step in the camera technological life cycle) has implications both for the film processing industry and for the number of type of players within the market" (Wilson and Gilligan, 2005). This basically means that the competition in the field has dramatically increased and the launch of the Sony Cyber Shot-DSC-W300 BLACK will have to revolve around modern characteristics of product life cycle.

4. SWOT Analysis

Strengths - the black color of the digital camera makes it easier for the user to keep the device clean (this is a strength as cleaning instruments cost additional money); the titanium frame is protective of the camera; it has face recognition and can even differentiate between older people and children; the lens stabilize the image; high speed feature which allows for the taking of five pictures per second; three noise reduction opportunities; Smile Shutter technology can make the photograph when the people are smiling; highlight and shadow technologies incorporated; highly responsive; rapid download through USB; high performances in low light environments; HD output (Imaging Resource, 2009).

Weaknesses - the HD output is only valid for photographs and not the videos shot; the optical zoom is of only three times; does not include HD cable; shooting the movies does not allow zoom; inaccurate viewfinder; the flash recycle times are slow; wide angles are unclear and with bright chromatic aberrations; the upper right and lower left corners are soft (Imaging Resource, 2009).

Opportunities - Sony can benefit from the continuous growth of the digital camera market and the technological advancements made in the field; more and more people begin to see the benefits of digital imaging and switch from traditional film cameras to digital appliances.

Threats - the internationalized economic crisis has shifted consumers' interest from luxury products to necessary commodities, generating as such a decrease in the demand for Sony digital cameras; Sony conducts international operations and faces severe challenges in terms of currency exchange risks (Kim, 2002).