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Q4. Apple SG5

Sony was struggling in 2011 due to losing touch with changing consumer behavior and market needs. Their focus on legacy products like CDs and Walkmans caused declining profits as the market evolved. As new CEO, the assistant would diagnose Sony's problems as related to value, profit, and people. Using the ERRC grid framework, the assistant would eliminate Sony's product-oriented focus and fixation on CDs/Walkmans. They would raise innovation focus through market research and awareness of financial issues. They would reduce emphasis on pushing products and missing opportunities. They would create a brand encompassing quality and customer loyalty, while clearly defining goals and strategy.

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Fadhila Nurfida Hanif
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137 views2 pages

Q4. Apple SG5

Sony was struggling in 2011 due to losing touch with changing consumer behavior and market needs. Their focus on legacy products like CDs and Walkmans caused declining profits as the market evolved. As new CEO, the assistant would diagnose Sony's problems as related to value, profit, and people. Using the ERRC grid framework, the assistant would eliminate Sony's product-oriented focus and fixation on CDs/Walkmans. They would raise innovation focus through market research and awareness of financial issues. They would reduce emphasis on pushing products and missing opportunities. They would create a brand encompassing quality and customer loyalty, while clearly defining goals and strategy.

Uploaded by

Fadhila Nurfida Hanif
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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4.

Reflecting on Sony’s struggle in 2011, suppose you are appointed as new CEO
at Sony, succeeding Howard Stringer:
a. How would you diagnose the problem of Sony in terms value, profit, and people?

Value
Sony was so focussed on its initial success of its products that they forgot
an important aspect which influences business heavily – Consumer
behaviour. Consumers over the years have always wanted new features in
their product. As a business, Sony lost its connect with the market whose
needs had changed over the years

Profit
Sony’s net income dropped from US$1.5 Bn by to US$851Mn in a span of
5 years. It hits its lowest share price in 2011. A primary thing to look forward
would be to find out why the declining net Income trend had not been
looked into seriously.
People
The Sony leader had not identified the problems of stagnancy in its various
teams. The problems which were thrown at the people were not
challenging enough. People were averse to the idea of letting go off legacy
products(CDs and Walkman).
4. b. Using the four actions framework (E-R-R-C Grid) introduced in Blue Ocean Strategy, what would
you do to revive the company?

Eliminate Reduce
• Sony was a product oriented • Sony required to reduce its focus
company suffering from from pushing its products into a
marketing myopia. highly evolving market
• It needed to eliminate its fixation • It also required to reduce and
with CDs and Walkmans as the minimise missing opportunities
market rapidly changing.

ERRC
Raise Create
• Sony required to raise its focus • Sony should have created a
on innovation in alignment with brand encompassing quality
market research. that would help customers
• It required more focus on its non
show loyalty and thus help it
customers rather than existing
customers while concentrating on retain its market share
R&D. • It needed to create and be clear
• Required to raise awareness on about its both long and short
the declining net income and low term goals and strategy.
share prices.

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