Aaron Fredrick Huston - Strategic Business Management Group Capstone - Sony HoloDeck

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Strategic Business Proposal 1 of 23 Strategic Business Proposal For SONY For: SONY www.sony.com Prepared On: July 25, 2014 Prepared By: Mason Hale Harris Domenica Giorgio Aaron Fredrick Huston Brianna Williams Instructor Name: Margaret Cox

description

I was presented with complex, real-world business scenarios related to the entertainment industry. I analyzed the scenarios, assessed potential action steps, and through collaboration, developed strategic plans to address the scenarios. Through this process, in a group of four, we evaluated the management, marketing, financial, legal, and ethical decisions that affect real-world business decisions. We also assessed external entrepreneurial opportunities that these scenarios could generate. Finally, with an encapsulating three week deadline we were required to produce a Strategic Business Proposal based on a company publicly traded, with an emphasis on intrapreneurial opportunities within that company. Furthermore, we were challenged to deliver this proposal via a panelist of three entertainment professionals, and amongst our peers, through verbal and visual presentation and communications, with an eight-minute time limit. A bound copy of our Strategic Business Proposal was delivered, along with accompanying Executive Letters per panelist, and a promotional marketing piece, designed in-house by the team itself.

Transcript of Aaron Fredrick Huston - Strategic Business Management Group Capstone - Sony HoloDeck

Page 1: Aaron Fredrick Huston - Strategic Business Management Group Capstone - Sony HoloDeck

Strategic  Business  Proposal    1  of  23

Strategic Business Proposal

For

SONY

 

For:  SONY  www.sony.com  

Prepared  On:  July  25,  2014    

Prepared  By:  Mason  Hale  Harris  Domenica  Giorgio  

Aaron  Fredrick  Huston  Brianna  Williams  

 Instructor  Name:  Margaret  Cox  

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Contents  Introduction  .............................................................................................................................................................  3  

Executive  Summary  .............................................................................................................................................  3  

1.    Environmental  Scanning  .....................................................................................................................................  4  

Company  Overview  .............................................................................................................................................  4  

Internal  Analysis  ..................................................................................................................................................  4  

External  Analysis  .................................................................................................................................................  5  

2.    Challenges  &  Solutions  .......................................................................................................................................  9  

Organizational  Challenges  ...................................................................................................................................  9  

Proposed  Solution  ...............................................................................................................................................  9  

3.    Strategy  Formulation  ..........................................................................................................................................  9  

Operations  ...........................................................................................................................................................  9  

Sales  &  Marketing  .............................................................................................................................................  10  

Legal  &  Ethical  ...................................................................................................................................................  11  

4.    Financial  Data  Analysis  ......................................................................................................................................  12  

Financial  Overview  of  the  Company  ..................................................................................................................  12  

Ratio  Analysis  Chart    ..........................................................................................................................................  12  

Total  Assets  Chart    .............................................................................................................................................  13  

Stock  Price  Chart  ...............................................................................................................................................  13  

5.    Strategy  Implementation  ..................................................................................................................................  14  

Timeline  and  Proposed  Milestones  ...................................................................................................................  14  

6.    Strategy  Evaluation  ...........................................................................................................................................  15  

Implementation  Evaluation  &  Benchmarks  ......................................................................................................  15  

7.    Appendices  and  References  ..............................................................................................................................  16  

References  .........................................................................................................................................................  16  

Appendices  ........................................................................................................................................................  18  

           Appendix  1:Three  Year  Synopsis  of  Income  Statements  .............................................................................  19  

           Appendix  2:Three  Year  Synopsis  of  Balance  Sheets  .....................................................................................  20  

           Appendix  3:  Sales/Revenues    .......................................................................................................................  22  

8.  Sony  HoloDeck  Marketing  Piece……………………………………………………………………………………………………………………23  

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Introduction  Executive  Summary  Sony  Corporation  designs,  develops,  manufactures,  and  sells  electronic  equipment,   instruments,  and  devices  for  consumer,  professional,  and  industrial  markets  worldwide.  The  company  is  also  engaged  in  the   acquisition,   production,   and   distribution   of   television   programs,   animated  motion   pictures,   and  video  content;  operation  of  television  networks  and  studios;  and  recorded  music  distribution,  as  well  as  music  publishing  businesses.   In   this   business   plan,   we   propose   to   create   a   new   revenue   stream   for   Sony   by   leveraging   the  company’s  electronics  manufacturing  and  music/video  content.   Enjoying   live   entertainment   is   an   experience   that   can   last   a   lifetime.   However,   seeing   your   favorite  artists  or  bands,  live  at  any  given  time,  is  not  practical.  Many  real  world  factors  prevent  this  from  sold  out  shows,  bad  weather  to  distance  to  the  venue.  The  Sony  HoloDeck  is  a  new  paradigm  in  experience  of  live  entertainment.  The  Sony  HoloDeck  is  an  innovative  new  combination  of  computer,  software  and  video  electronics  that  will  generate  a  true  3-­‐D  image,  with  Surround  Sound  in  your  own  home.   Never  miss  a  live  concert,  musical,  play  or  any  artist,  ever  again!  The  Sony  HoloDeck  can  project  your  concert   live   from   the   artist   on   stage,   or   play   it   back   later,   hundreds  of   times.   The  HoloDeck   is   your  stage  at  home  and  is  “Bluetooth”  enabled  to  accept  streaming  music  and  videos  from  any  computer  or  mobile   device.   The   HoloDeck   is   disruptive   new   technology   that   will   both   enhance   viewing   a   live  performance  and  will  create  a  new  connection  between  artist  and  fan.

 

 

                                                                                                                                                                               

                                 Mason  H.  Harris                              Domenica  Giorgio  

 

 

                                                                                                                                                                               

                               Brianna  Williams                        Aaron  Fredrick  Huston  

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1:  Environmental  Scanning  Internal  Analysis  

Company  Overview  Sony  Corporation  is  based  out  of  Tokyo,  Japan  and  the  United  States  headquarters  is  in  New  York,  NY.  Sony's  principal  U.S.  businesses  include  Sony  Electronics  Inc.,  Sony  Mobile  Communications  (USA)  Inc.,  Sony   Computer   Entertainment   America   LLC,   Sony   Network   Entertainment   International   LLC.,   Sony  Pictures   Entertainment   Inc.,   Sony   Music   Entertainment,   Sony/ATV   Music   Publishing   LLC,   and   Sony  Online  Entertainment  LLC.    With  some  900  million  Sony  devices  in  hands  and  homes  worldwide  today,  a  vast  array  of  Sony  movies,   television  shows  and  music,  and   the  PlayStation  Network  and   the  Sony  Entertainment  Network,   Sony   creates   and  delivers  more  entertainment   experiences   to  more  people  than  anyone  else  on  earth.  (Company  Overview  of  Sony  (Sony,  2014)

Sony   and   its   subsidiaries   are   known   for   creating   products   that   enrich   people's   lives.   Sony’s  commitment  extends   to  helping   local   communities,   fostering  better  educational   systems,   supporting  the   arts   and   culture,   helping   disadvantaged   youth,   protecting   and   improving   the   environment   and  encouraging  employee  volunteerism.  (Sony,  2014)  

Organizational  Strengths  The  cutting  edge  co-­‐developer  of  the  CD,  the  DVD  and  the  Blu-­‐ray  Disc  format,  Sony  continues  to  break  new   ground   with   innovative   products   like   the   PlayStation®4,Xperia™   smartphones   and   tablets,  BRAVIA®   4K   televisions,   VAIO®   personal   computers,   4K   professional   cameras,   and   the   Cyber-­‐shot®,  Alpha  DSLR  and  NEX  digital  cameras.    In  2013,  Sony  led  the  movie,  television  and  music  industries  with  21  Academy  Award,  22  Golden  Globe  and  95  Grammy  nominations.  Sony  has  brought  the  world  such  acclaimed  movies   as   “The  Amazing   Spider-­‐Man,”   “Skyfall,”   and   “American  Hustle”   and   produces   hit  television  shows   like  “Breaking  Bad,”   "The  Blacklist,"   “The  Dr.  Oz  Show,”  “Jeopardy!”  and  “Wheel  of  Fortune.”    Sony   music   artists   include   Adele,   Michael   Jackson,   Bruce   Springsteen,   Beyoncé,   Carrie  Underwood   and   Justin   Timberlake.   The   Sony   Entertainment  Network   is   the   ultimate   destination   for  digital  music,  movies,  television  programs  and  games  delivered  through  the  PlayStation  Network  and  the  Music  Unlimited  and  Video  Unlimited  services.  (Sony,  2014)

Organizational  Weaknesses  Once   known   as   the   premiere   electronic   company   starting   with   the   Sony   Walkman,   due   to   the  competition   Sony   has   lost   its   exclusivity.   The   competition   is   also   beating   them   out   in   price;   it   was  proved  recently  that  Samsung  was  caught  for  hiring  children  as  workers.    (Lee,  2014)

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Customers  Sony   is   a   diverse   brand   that   provides   products   and   services   for   a   wide   variety   of   people.   Sony’s  products   typically   target   consumer’s  ages  10   to  65  years  old.   These   customers  are  most   likely   to  be  living  in  urban  and  suburban  areas  and  are  middle  to  upper  middle  class  residents.  They  usually  consist  of   families  who  enjoy  home  entertainment   systems  and  other  electronic  devices   in   their  household.  Besides   home   entertainment,   these   families’   interests   include   family   oriented   activities   such   as  traveling,  outdoor  activities,  and  recreational  activities.  These  customers  are  worldwide  but  are  mainly  targeted  in  North  America,  Europe  and  Japan.  The  consumer’s  motivation  for  continuously  buying  the  products  is  their  trust  and  loyalty  in  the  brand.  Consumers  usually  purchase  these  products  online  and  in   stores   at   popular   retail   stores   like   Best   Buy   and  Wal-­‐Mart.   The   company   strives   to   deliver   high-­‐quality,   reliable  products   that   its   consumers  can  use  with  confidence  and  heartfelt   customer   service  with  a  personal  touch  (Sony,  2010).  

Collaborators  Digital  Distribution

PlayStation  Network  and  PlayStation  Plus  -­‐  Online  Digital  Media  Delivery  Service

In  order  to  properly  localize  this  digital  property  and  maintain  control  over  distribution  and  delivery  of  this  property  PSN  will  be  utilized  as  the  foundation  for  this  release.  Through  the  synergy  of  PSN  and  PlayStation   Plus,   brand   advocates   that   have   already   adopted   Sony,   as   their   flagship   electronics   and  media  providers  will  be  able  to  easily  access  this  content,  due  to  their  subscription  based  membership  to   PSN.   Boasting   over   110   million   accounts   worldwide   the   PSN   network   will   be   instrumental   in  implementing  dynamic  distribution  to  an  all  encompassing  market.  (Moss,  2013)   CBS  -­‐  Live  Cable  Distribution

In  order  to  foster  stronger  brand  loyalty  between  North  American  costumers  and  Sony,  CBS  will  be  the  main  broadcasting  network  synchronized  with  this  digital   release.  Being  a   top  competitor  within   this  sector   of   the   industry,   and   its   close   ties   with   Sony   will   allow   for   easier   communication   between  organization   levels,   and   will   increase   efficiency   of   this   project,   while   maintaining   Sony’s   ability   to  competently   maneuver   away   from   potential   setbacks   and   obstacles.   Through   a   lucrative   deal   to  provide   retransmission   rights   to   both  MTV   and  BET  networks,   there   is   also   the   option  of   also   using  these  networks  in  conjunction  with  CBS    (Bloomberg  BusinessWeek,  2014).   AXN  -­‐  Sony  Pictures  Television  (Division  of  Sony  Pictures)  -­‐  Foreign  PayTV,  Cable,  and  Satellite  Distribution  

Finally,   being   one   of   SPT’s   premier   pay   TV,   cable   and   satellite   networks,   AXN   stands   to   be   a   key  gatekeeper  towards  providing  this  digital  release  to  foreign  sectors  of  the  global  economy.  Countries  

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such  as  Spain,  Italy,  Central  America,  and  India  can  easily  be  distributed  to  through  AXN’s  established  channels,  increasing  global  exposure  exponentially,  with  the  proper  marketing.  (Roxborough,  2013)    

External  Analysis  

The  external  analysis  for  Sony  is  largely  based  on  the  PEST  analysis  created  for  the  business  climate.  Sony  used  to  be  the  leading  technology/electronic  company  in  the  industry.      

 

 

 

 

 

 

 

 

 

Competitors  Samsung

Samsung   is   Sony’s   top   direct   competitor.   The   company   operates   through   three   different   business  divisions;   Consumer   Electronics,   Information   Technology   &   Mobile   Communications   and   Device  Solutions.   Some   services   Samsung  offers   in   competition   to   Sony  are  TVs,   computers,  mobile  phones  and  digital  cameras.  They  were  originally  founded  in  1938  and  Samsung  Electronics  came  to  life  in  1969  and  their  headquarters  is  in  Suwom,  South  Korea.  (Forbes,  2014)

Panasonic

Panasonic  is  another  one  of  Sony’s  direct  competitors.  This  company  operates  through  six  different  business  segments;  Audio  Visual  Computer  (AVC),  Appliances,  System  and  Communications,  Eco  Solutions,  Automotive  Systems,  Device,  Energy  and  Others.  The  main  competition  Sony  faces  from  Panasonic  are  through  their  AVC  and  System  and  Communications  segments.  This  involves  TVs,  digital  cameras  and  camcorders,  mobile  phones,  projectors  and  home  theaters.  The  company  was  founded  in  1918  and  their  headquarters  is  currently  in  Osaka,  Japan.  (Forbes,  2014)

       

Price  Range  Per  Consumer  Product  

$2,000-$30,000 $730-$50,000 $299-$12,999 $550-$1300

Products  Electronics,

Mobile, Home Theater,

Appliances

Electronics, Mobile, Home

Theater, Appliances

Electronics, Mobile, Home

Theater, Appliances

Electronics, Mobile, Home

Theater, Appliances

Company  Founded   1946 1959 1988 1958

 2014  Annual  Sales    

$78.2B $77.27B $208.9B $53.11B

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LG  (LG  Electronics)

LG,  another  direct  competitor  of  Sony’s,  works  in  the  following  business  areas:  Home  Entertainment,  Mobile   Communications,   Home   Appliance,   Air-­‐Conditioning,   Energy   Solution,   and   Independent  business   area.   The   main   competition   Sony   faces   from   LG   comes   from   their   operations   in   Home  Entertainment  and  Mobile  Communications.  The  company  was  originally  founded  as  LG  Corporation  in  1947  and  then  in  1958  LG  Electronics  came  to  be  the  company  known  worldwide  today.  (Forbes,  2014)

Business  Climate  Political  &  Regulatory  Sony  Corporation  is  a  worldwide  business  that  operates  within  many  different  laws,  regulations,  tax  rates,  etc.  When  it  comes  to  doing  business  with  consumers  and  other  companies  Sony  has  to  adhere  to  the  rules  and  regulation  of  whichever  country  they  are  operating  in.  This  means  it  is  very  important  for  the  company  to  stay  up  to  date  with  international  laws  at  all  times.  (Oakley,  2013)    Economic  Economics   factors   Sony   needs   to   consider   are   inflation,   exchange   rates,   interest   rates,   stock   market  patterns,  etc.  When  rolling  out  a  new  product,  Sony  needs  to  make  sure  these  factors  are  playing  in  favor  of  the  company.  This  means  entering  the  market  with  a  new  product  at  the  right  time.  Analyzing  the  labor  and  material  requirements,  economic  situation  and  inflation  are  key  components  Sony  should  focus  on  before  releasing  new  products.  (Oakley,  2013)    Social/Cultural  The   social   factors   that   Sony   needs   to   consider   when   it   comes   to   selling   their   products   are   consumer  behavior,   life   styles,   demographics,   consumption   patterns,   incomes   levels   and   other   similar   factors   as  those.  One  problem  Sony  faces  is  their  prices  are  highest  among  their  competitors,  which  doesn’t  allow  for  low-­‐income  people  to  buy  Sony  products.  This  is  not  to  say  Sony  should  cut  all  prices,  however,  there  price  cuts   could   be  made   accordingly   so   Sony   can   also   offer   reliable   products   at   a   lower   prices.   Another   area  Sony   needs   to   analyze   constantly   and   always   be   up-­‐to-­‐date   on   is   the   life   styles   of   different   regions.  Americans   are   going   to   expect   much  more   advanced   technology   than   those   in   some   African   and   Asian  countries  where  technology  has  not  progressed  as  much.  Considering  these   factors  will  allow  for  Sony  to  narrow   down   the   specific   areas   that   use   certain   technologies   so   the   company   knows   where   to   place  products  in  the  markets.  (Oakley,  2013)    Technology  Today’s  world   is  built   around   technology,  but  a   technology   can  become  obsolete  over  night.   Sony  was  a  market   leader   for   more   than   6   decades,   but   has   recently   been   dominated   in   the  market   by   Apple   and  Samsung.   Sony   needs   to   focus   a   lot   of   time   and   energy   in   the   technological   area   in   order   to   become   a  market   leader   once   again.   Research   and   development   is   the  most   important.   This  will   allow   for   Sony   to  create   innovative   products   and   bring   them   into   the  market   better   than   its   competitors.   Sony   also  must  

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ensure   the  availability  of   their  products  worldwide   to  allow   their   reputation   to   continue  and  grow.  Also,  learning  from  past  failures  and  successes  will  be  key  to  growing  within  the  technology  area. (Oakley,  2013)

Business  Opportunities  For  Sony  Corporation  to  become  a   leading  competitor  over  a  company  such  as  Samsung,  they  would  need  to  create  a  product  that   is   trademarked  and  patented  only  by  them  so   it  would  be  difficult   for  another   company   to  bring   to   the  market.   Currently   Sony  has   already  begun  work  on   this   project.   A  product   that   the   company   can   capitalize   on   is   the   Crystal   LED   Television.   This   type   of   product   can  become  a   lead  force  for  Sony  because  a  sharper   image  television   is  something  that  will  always  be   in  demand  in  the  market.  Consumers  want  the  best  quality  if  Sony  can  provide  their  customers  with  the  best   they  will  become  a   leader   in   the   industry   (Fatakia,  2012).   Sony  has  also  had  great   success  with  their  PlayStation.  PlayStation  plus  is  estimated  to  bring  Sony  $1.2  billion  by  2017.  With  the  way  gaming  consoles  are  used  today  Sony  can  expect  to  revenue  from  not  only  the  purchase  of  the  console  itself,  but   also   subscriptions   with   more   digital   content.   Because   of   this   success,   this   opens   future  opportunities  to  develop  a  holographic  gaming  console.  The  more  features  that  Sony  is  able  to  create  with   their   console   the   more   consumers   will   look   to   purchase   this   product   (Tassi,   2013).   With   the  development  of  these  two  products  Sony  will  be  able  to  come  a  leading  competitor  against  Samsung,  LG,  Panasonic   and  Apple.   They  will   be  able   to   capitalize  on  both   these  products  because   they  are  a  Sony  product  only  with  specific  features.  

Business  Threats  Sony  Corporation  could  face  huge  threats  with  competition  based  pricing.  If  companies  such  as  LG  and  Samsung  produce  similar  devices  at  a  lower  cost  it  could  cause  consumers  to  choose  companies  other  than  Sony.  If  these  companies  can  create  other  products  and  team  with  one  of  the  other  leading  music  companies,  such  as  Universal  or  Warner,  this  could  lead  to  Sony’s  product  losing  value.  Apple  is  also  a  large  threat  to  Sony  because  they  have  the  ability  to  create  a  product  that  consumers  know  and  trust  (Fatakia,  2012).  Customers  may  feel  if  something  is  an  Apple  product  it  is  better  than  another  leading  brand.  Starting  as  the  first  company  with  this  technology  Sony  faces  the  threat  of  a  company  using  the  initial   idea   and   making   a   product   that   has   more   to   offer   or   different   versions   causing   Sony   to   fall  behind  with  the  product.    

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2:  Challenges  &  Solutions  Organizational  Challenges  The   challenge   Sony   Corporation   currently   faces   is   their   electronic   sales.   Not   only   are   sales   with  competitors   an   issue,   but   releasing   a   new   high   quality   product   to   compete   against   other   major  electronic  corporations  is  also  a  major  challenge.  The  entire  goal  behind  the  roll  out  of  Sony’s  proposed  solution  is  to  significantly  increase  sales  and  popularity  of  the  company  among  consumers.  

Proposed  Solution  The  proposed  solution  to  increase  sales  and  popularity  is  to  create  an  in-­‐home  hologram  device.  This  will  be  a  concept  similar  to  that  of  having  a  home  theater  installed  into  your  home.  The  idea  is  to  build  four  individually  standing  projector  bars  and  one  bar  that  will  be  laid  on  the  floor  of  the  room.  The  5  projector  bars  are  professionally  installed  into  the  home  and  calibrated  with  each  other  so  they  work  in  sync  with  the  objects  in  the  room  and  with  the  other  projectors.  These  projectors  will  form  a  hologram  of  an  artist  in  a  personal  residence.    

3:  Strategy  Formulation  Operations  This  will  be  when  a  press  release  will  be  held.  The  press  release  will  involve  a  live  demonstration  of  the  hologram  for  press  and  select  general  public.  The  “live  performance”  using  the  HoloDeck  system  will  feature  a  30-­‐minute  concert  by   John  Legend.  During   the  press   conference  Sony  will   announce  a   live  concert   by   Beyoncé   and   Carrie   Underwood   at   Madison   Square   Garden   for   customers   who   have  purchased  the  HoloDeck  system.  There  will  then  be  a  six-­‐month  “pre-­‐order”  period  for  the  HoloDeck.  During  this  time  customers  will  purchase  the  system  and  install  with  a  guarantee  to  have  it  installed  by  the  debut  of  the  first  HoloDeck  concert  in  March  2016.  Those  who  pre-­‐order  will  have  the  concert  fee  waived  for  the  Beyoncé  and  Carrie  Underwood  concert.  On  November  15,  2015  the  HoloDeck  will  go  on   sale   to   the  general  public.  Orders  made  on  or  after   this  date  will   require   the  concert   fee   for   the  Beyoncé   and   Carrie   Underwood   concert.   All   orders   placed   prior   to   February   will   have   an   install  guarantee  to  be  in  the  customer’s  home  by  the  concert  in  March.  In  March  2016  Beyoncé  and  Carrie  Underwood   will   have   a   concert   that   will   be   streamed   to   all   customers   who   have   purchased   the  HoloDeck  system.    Sony  will   continue   to  manufacture  all   current  products   and   the  HoloDeck  at   their   facilities   in   Japan.  Research  &  Development  will   begin  outsourcing   to   third  party   contractors   to  develop   the  necessary  

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design  elements  for  the  HoloDeck.  This  will  also  involve  the  implementation  of  installing  these  devices  in   the  home.   Sony   specialty   staff  will   be   trained  on   the  device,   how   it   operates   and   the   installation  process.    

Sales  &  Marketing  

Sony  will  be  utilizing  a  variety  of  methods  to  market  the  release  of  the  “HoloDeck”  and  ensure  that  the  product  reaches  the  target  market  in  a  positive  way.  Financial  factors  include  manufacturing  costs,  new  employees,   commission,   distribution   and   marketing.   The   company’s   marketing   objectives   is   to  potentially  increase  sales  and  brand  awareness.    

In  order  to  maximize  the  efficiency  of  installation,  all  technicians  and  sales  associates  will  undergo  an  intensive   training   program.   There   will   be   a   reward   initiative   in   place   to   incentivize   sales   between  departments.  There  will  quarterly,  semi-­‐annual  and  annual  competition  based  sales  events  in  order  to  accomplish   this   incentive,  with   tiered   prizes   and   the   option   to   cash   out   in   the   event   that   a   prize   is  otherwise  unsuitable   for   the  respective  sales  representative  and   installation  technicians  respectively.  Sales  representatives  will  be  gauged  on  new  customer  acquisitions,  and  installation  technicians  will  be  gauged  on   installation  efficiency.  Both  departments  will   be  heavily   graded  on   customer   satisfaction.  Installation  technicians  will  also  have  to  maintain  current  certification  standards,   receiving  additional  training  as  necessary  when  new  improvements  arise.  Installation  by  a  certified  Sony  technician  will  be  mandated   for  all   initial   installations,  and   later   service   requests.  Due   to   the   fact   that  a  Sony  certified  technician  requires  installation,  this  service  fee  will  be  fixed  at  a  competitive  price,  in  accordance  with  scope  and  complexity  of  installation.  

Sony  will  be  partnering  with  its  music  company  to  help  promote  the  product.  A  celebrity  endorsement  deal  with   some  of   Sony’s   top  artists  will   include  Beyoncé’,   Carrie  Underwood  and   John   Legend.   The  company’s   first  strategy  will  be  to  send  out  press  releases  to   industry  professionals  to  announce  the  new  product  and  set  up  a  press  conference.  At  the  press  conference,  there  will  be  a  Q&A  session  and  a  live  performance  of   John  Legend   in  holographic   form  to  demonstrate  what   the  product  can  do.  This  conference  will  be  taking  place  in  New  York.  

The  next  strategy  will  be  creating  two  separate  TV  commercials  using  Beyoncé’  and  Carrie  Underwood  to  advertise  the  product.  These  two  celebrities  have  different  fan  bases  that  Sony  would  like  to  target.  These   30-­‐second   commercials  will   be   aired   on   CBS   and   ESPN   to   target   the   demographics   that   Sony  already  has.  The  commercials  will  also  be  distributed  online  through  social  media.  They  will  be  placed  on  the  company’s  website  and  social  media  pages  plus  the  artists  social  media  pages  such  as  Facebook,  Twitter  and  YouTube.    

The  last  strategy  would  be  to  have  promotional  posters  made  which  will  feature  a  QR  code  on  it  that  will  automatically  direct  consumers  to  the  website  that  will  provide  the  product’s  content/features  and  

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display  the  commercial  for  them  to  view.  This  poster  provides  consumer  interaction  and  convenience  built  on  the  benefits  of  expanding  the  products’  exposure.  Sony  will  be  placing  these  posters  in  major  malls,  electronic  stores,  bus  shelters,  magazines,  and  online  and  other  key  points-­‐of-­‐sales  around  the  country.  The  slogan  for  the  product  “Its  How  You  View  It”  will  be  the  name  of  this  campaign  to  eagerly  catch  consumer’s  attention  and  get  them  intrigued  with  the  product.        

Legal  &  Ethical  

Legal  Factors  Sony   Corporation   would   ultimately   be   creating   the   main   part   of   this   proposal,   the   HoloDeck.   The  HoloDeck  is  a  new  invention  that  will  need  to  be  patented.  This  will  be  so  no  other  business  can  create  the  exact  same  product.  Some  legal  factors  that  go  along  with  creating  this  product  are  licenses.  The  licenses  that  will  be  needed  are  a  synchronization  license,  a  public  performance  license  and  the  right  to  broadcast.  Because  this  product  is  set  up  as  if  a  customer  were  going  to  a  live  concert,  the  cost  for  each  license  will   be   covered   in   the   ticket   prices.   Sony  will   be   using   their   own   artists   and   have   their   own  publishing  company  it  will  be  possible  to  have  these  costs  at  a  reduced  rate.  This  will  be  handled  in  the  contracts  between  the  artist  and  the  record  label.    

Ethical  Considerations  The  ethical   concern   that  may  arise   from   this  product   is   Sony  Corporation  may   turn  down  our   initial  proposal   then   develop   a   product   similar   to   the  HoloDeck.   Because   of   this   factor  we  will   have   Sony  employees  and  the  third  party  contractors  sign  a  nondisclosure  form  as  well  as  a  non-­‐compete  form.  This  will  protect   the  business  and  both  sides  of   the  business  will  be  on  equal  negotiation  terms.  We  would  also  stress  that  employees  of  Sony  do  not  divulge  in  any  business  secrets  to  outside  companies.  Ethical  business  conduct  and  compliance  with  applicable  laws  and  regulations  are  fundamental  aspects  of   Sony’s   corporate   culture.   Sony   has   established   a   Global   Compliance   Network,   which   is   there   to  assure  that  employees  can  always  raise  any  concerns  or  seek  guidance  about  legal  and  ethical  matters.  These  factors  are  in  place  to  make  sure  everyone  at  Sony  and  contracted  companies  is  adhering  to  the  company  code  of  ethics.  As  well,  this  allows  for  shareholders  to  look  favorably  at  Sony  and  their  future  business  proposals  favorably.    

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4:  Financial  Data  Analysis  Financial  Overview  of  the  Company  Sony   Corporation   is   at   a   pivotal   moment   within   the   market   and   has   the   opportunity   to   utilize   its  expansive   network   of   resources   to   dramatically   launch   itself   competitively   into   the   future.   Sony’s  position  within  the  market  has  maintained  middle  ground,  defending  itself  despite  a  significant  down  curve  in  Stock  Price  at  the  end  of  2012,  but  has  significantly  risen  since.  This  is  clear  example  that  Sony  is   continuing   to   effectively   utilize   its   resources   within   the   market,   while   fortifying   itself   to   make  dynamic  brand  expansions   in   the   future  as  well.   Total   assets   show  good   reason   that   there  will   be  a  significant  allowable  budget  for  future  technological  advances  that  would  positively  position  Sony  with  the  market.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Price/  

Earnings  Ratio  

Price  Earnings  Growth  Ratio  

Current  Ratio  

Debt  to  Equity  Ratio  

Gross  Profit  Margin  

Earnings  Per  Share  

  15.47   .75   .879   5.78   .23   -­‐1.25  

  24.01   1.03   1.01   2.39   .25   .51  

  3.81   3.84   2.16   .44   .76   98.83  

  21.77   22.20   .715   1.96   .23   .62  

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3-­‐Year  Stock  Prices    

 

 

 

 

 

 

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5:  Strategy  Implementation  Timeline  &  Proposed  Milestones  The  timeline  of  the  HoloDeck  starts  in  2015  and  goes  through  2018.  These  are  the  first  3  years,  which  are  crucial  in  getting  the  HoloDeck  to  consumers  and  getting  buzz  behind  the  product.            

Year  One  

Date/Timeframe   Event/Milestone  May  2015   Press  Release  and  HoloDeck  Reveal  

May  –  November  2015   Pre-­‐Sale  Orders  and  Marketing  Campaigns  November  2015   Official  Public  Release  of  HoloDeck  

November  2015  -­‐  February  2016  

Orders  placed  in  this  time  frame  will  have  guaranteed  install  for  debut  concert  

March  2016   Debut  of  HoloDeck  concert  by  Carrie  Underwood  &  Beyoncé        

Year  Two  

Date/Timeframe   Event/Milestone  March  -­‐  May  2016   Begin  plans  for  implementation  into  public  establishments  

May  –  November  2016   Marketing  for  HoloDeck  concerts/Meeting  with  Lawyers  &  Artists  November  2016  -­‐  

March  2017  Installation  into  Hard  Rock  Café  &  House  of  Blues.  Begin  testing  live  shows.  

March  2017   Live  HoloDeck  concerts  begin  for  general  public  November  2017   Announcement  of  HoloDeck  Live  

   

Year  Three  

Date/Timeframe   Event/Milestone  December  2017  –  

March  2018  Sales  and  installation  of  HoloDeck  Live  Cameras  for  live  award  shows  

March  –  May  2018   Updates  given  to  previously  installed  systems  &  more  marketing  June  2018   HoloDeck  Live  begins  international  use  for  live  award  shows  

       

 

 

 

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6:  Strategy  Evaluation  Evaluation  Strategy  &  Benchmarks  The   success  of   the  HoloDeck  will  be  based   largely  on   sales,   as  well   as  how  often  customers  use   the  Hologram  program.  In  two  years  after  the  release  of  the  HoloDeck,  if  customers  utilize  the  Hologram  program  of   the  HoloDeck   as  often   as   possible   then   the  product   as   been   successful.  What  will   allow  Sony  to  evaluate  what  is  considered  a  success  is  by  getting  to  know  the  customer.  When  the  HoloDeck  is  being  purchased,  we  want  to  know  what  genres  of  music  are  of  interest  to  the  customer  and  what  kind  of  artists  they  plan  on  being  able  to  watch.  This  will  allow  for  us  to  narrow  the  usage  by  genre.  For  example,  if  the  customer  is  a  country  music  fan  and  10  country  concerts  become  available  in  one  year  for  the  HoloDeck  and  the  customer  purchases  7  of  the  10,  then  they  are  utilizing  the  Hologram  as  we  planned.   If   customers   are   purchasing   only   one   or   two   and   only   using   the   HoloDeck   for   it’s   home  theater  features,  then  a  plan  needs  to  be  set  in  place  to  give  the  customers  incentive  to  purchase  more  Hologram  concerts  in  their  home.    

After   the   Sony   HoloDeck   goes   on   sale   and   the   first   concert   is   broadcasted,   we  will   begin   plans   for  implementation   into  public  establishments.  These  plans  will  begin   in   the  spring  of  2016.  Throughout  the   following   year   we   will   begin   marketing   campaigns   promoting   the   HoloDeck   in   home   concerts,  installation  into  Hard  Rock  Café  &  House  of  Blues  venues  to  begin  testing  live  shows.  This  is  when  the  HoloDeck  will  be  played  inside  public  venues  while  the  physical  concert  is  happening  either  in  the  same  city,   or   in   another   state.   In   2017   Sony   plans   to   introduce   HoloDeck   Live   that  will   bring   live   awards  shows  into  your  home  via  a  hologram.  

 

 

 

 

 

 

 

 

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7:  Appendices  and  References      

References  Bloomberg  Businessweek.  (2014).  Company  Overview  of  CBS  Broadcasting,  Inc.  .  Retrieved  July  20,  2014,  from  http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=4235010

Business  Balls.  (2009).  PEST  Analysis  Template  .  .  Retrieved  July  20,  2014,  from  http://www.businessballs.com/freepdfmaterials/pest-­‐analysis-­‐free-­‐template.pdf

Dogruer,  B.,  Ferzly,  M.,  Nguyen,  H.,  Roach,  D.,  &  Ward,  R.  (2014).  Report  on  Sony  Corporation.  .  Retrieved  July  20,  2014,  from  http://webcache.googleusercontent.com/search?q=cache:6MYPku2c85cJ:stuff.mit.edu/afs/athena/course/15/15.249c/Sony.pdf+&cd=1&hl=en&ct=clnk&gl=us

Fatakia,  K.  (2012,  March  2).  Sony  Corporation:  Strengths,  Weaknesses,  Opportunities,  Threats.  .  Retrieved  July  20,  2014,  from  http://www.fool.com/investing/general/2012/03/02/sony-­‐corporation-­‐strengths-­‐weaknesses-­‐opportunitie.aspx

Forbes.  (2014).  LG  Electronics.  .  Retrieved  July  20,  2014,  from  http://www.forbes.com/companies/lg-­‐electronics/

Forbes.  (2014).  Panasonic.  .  Retrieved  July  20,  2014,  from  http://www.forbes.com/companies/panasonic/

Forbes.  (2014).  Samsung.  .  Retrieved  July  20,  2014,  from  http://www.forbes.com/companies/samsung-­‐electronics/

Forbes.  (2014).  Sony.  .  Retrieved  July  20,  2014,  from  http://www.forbes.com/companies/sony/

Lee,  M.  (2014,  July  14).  Samsung  Finds  Evidence  of  Child  Labor  at  Chinese  Supplier.  .  Retrieved  July  20,  2014,  from  http://online.wsj.com/articles/samsung-­‐finds-­‐evidence-­‐of-­‐child-­‐labor-­‐at-­‐chinese-­‐supplier-­‐1405311837

Moss,  S.  (2013,  July  3).  PSN  Passes  110  Million  Accounts,  Sony  Pictures  Developing  Exclusive  “Original  TV-­‐Style  Programming”  for  PSN,  Timed  Exclusives.  .  Retrieved  July  20,  2014,  from  http://www.playstationlifestyle.net/2013/07/03/psn-­‐passes-­‐110-­‐million-­‐accounts-­‐sony-­‐pictures-­‐developing-­‐exclusive-­‐original-­‐tv-­‐style-­‐programming-­‐for-­‐psn-­‐timed-­‐exclusives/

Ng,  P.  (2014,  July  10).  HBO  Lands  Beyonce  and  Jay  Z's  'On  the  Run'  Concert  Special.  .  Retrieved  July  20,  2014,  from  http://www.billboard.com/articles/columns/the-­‐juice/6157429/hbo-­‐lands-­‐beyonce-­‐and-­‐jay-­‐zs-­‐on-­‐the-­‐run-­‐concert-­‐special

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Oakley,  W.  (2013,  May  14).  P.E.S.T  ANALYSIS  FOR  SONY  CORPORATION.  .  Retrieved  July  20,  2014,  from  http://williamoakley1.wordpress.com/2013/05/14/p-­‐e-­‐s-­‐t-­‐analysis-­‐for-­‐sony-­‐corporation/

Rodriguez,  J.  (2008,  January  29).  John  Legend  Shows  How  Easy  Charity  Can  Be  With  Poverty  Action  Tour.  .  Retrieved  July  20,  2014,  from  http://www.mtv.com/news/1580520/john-­‐legend-­‐shows-­‐how-­‐easy-­‐charity-­‐can-­‐be-­‐with-­‐poverty-­‐action-­‐tour/

Roxborough,  S.  (2013,  July  12).  Sony  Launches  New  AXN  Networks  Across  Europe.  .  Retrieved  July  20,  2014,  from  http://www.hollywoodreporter.com/news/sony-­‐launches-­‐new-­‐axn-­‐networks-­‐584565

Sony.  (2010).  Products  and  Services.  .  Retrieved  July  20,  2014,  from  http://www.sony.net/SonyInfo/csr_report/issues/report/2010/pdf/CSR_Report2010_07.pdf

Sony.  (2014).  Who  We  Are  .  .  Retrieved  July  20,  2014,  from  http://www.sony.com/SCA/who-­‐we-­‐are/overview.shtml

Tassi,  P.  (2013,  August  16).  Analyst  Estimates  PlayStation  Plus  Will  Generate  $1.2B  For  Sony  Annually.  .  Retrieved  July  20,  2014,  from  http://www.forbes.com/sites/insertcoin/2013/08/16/analyst-­‐estimates-­‐playstation-­‐plus-­‐will-­‐generate-­‐1-­‐2b-­‐for-­‐sony-­‐annually/

 

 

 

 

 

 

 

 

 

 

 

 

 

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Appendices  

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