8/9/2019 Switching Cost

1/12

SWITCHING COST

The costs the customers face whenchanging suppliers.

Includes direct financial cost and moregeneral cost .

Significant as they can mean acompany can have a higher costs than arival without necessarily loosing business.

8/9/2019 Switching Cost

2/12

SONY CORPORATION

W orld s most widely known electronicscompany

Founded in Japan in 1946, started withinvestment of less than 200000 Yen.

Released its first product, Taperecorder inJapan.

8/9/2019 Switching Cost

3/12

CURRENT SYSTEM AND

TECHNOLOGYR & D mission can be described as

Technology for inspiration and sharedexperience .

Conducts research on proprietorytechnologies.

Establish Cross Business Council to examinetechnological development themes.

8/9/2019 Switching Cost

4/12

MANAGEMENT CHALLENGESCompany was slow to respond to vastly popular

digital music products entries from Apple.

Lost volume market leadership to samsungelectronics company.

In gaming devices, Nintendo s W ii and Xbox 360

from Microsoft are the tough competitors.

8/9/2019 Switching Cost

5/12

8/9/2019 Switching Cost

6/12

IMPACT OF PROPOSED WORK

Direct and indirect impact on society in whichit operates.

Aim to create value by developing productsand services and advancing innovation.

Pursue its corporate value enhancementthrough innovation and sound businesspractice for welfare of society.

8/9/2019 Switching Cost

7/12

SUGGESTIONS

Building of strategy G reat emphasis on market share

Strategy should be aimed at greater controland communication between managers andworkers

8/9/2019 Switching Cost

8/12

D iversificationConcentrate on business sector and industries

supplying technical equipments and parts.Expand its products range by offering lower

price , simple featured product.

8/9/2019 Switching Cost

9/12

C ost cuttingProduct should be refined instead of

reinvented so that there should be less set upcost and greater automation could beachieved.

8/9/2019 Switching Cost

10/12

Integration of production , design and marketing

R & D should listen more to what theconsumer need and then innovate.

The designing team should also take ongreater responsibility of making the productfit to current production pattern andmarketing aims.

8/9/2019 Switching Cost

11/12

CONCLUSION

The heart of Sony's success, the innovative spiritand quest of excellence and perfection cannot becopied.

Sony's main task is to integrate its talent byplacing common goals and priority for thisincreasing competitive market.Sony has the potential to innovate into a

company with international operations as well ascultureW ith strategy and luck, Sony could become agreat firm as it was and will be.

8/9/2019 Switching Cost

12/12

REFERENCES