Xu,Xiaoxuan (Connie) Zhang,Yao (Stephanie) Liu,Zhenzi (Christina) Nov.10 th,2008

 Industry Analysis Industry Analysis  Company Analysis (History, Current, Future) Company Analysis (History, Current, Future)  International Expansion International Expansion  Recommendations Recommendations  Competitor Analysis Competitor Analysis  SWOT Analysis SWOT Analysis

The beginning of consumer digital camera era 1995, Casio QV-10 Industry Analysis

The becoming of mainstream product Pocket-size and fashionable Matured digital camera industry Industry Analysis

SLR digital camera & Ultrathin digital camera 2005,Sony T7 2003, Nikon D70 Industry Analysis

Fierce competition between camera makers Industry Analysis

The designs of the digital cameras become more classic and stylish. A higher level of face detection technology and intelligent scene recognition technology make shooting easier. The Tendency of Digital Camera Industry: Industry Analysis

Third, the use of touch-screen Industry Analysis The Tendency of Digital Camera Industry: Sony T300

Company Analysis In 1945, Masaru Ibuka and Akio Morita, Tokyo Telecommunications Engineering Corporation In 1958, New Name First electronic camera, Mavica, in 1981 magnetic recording ， embryonic form History

Current Leader Digital cameras, recorded music, PC The headquartered is in Tokyo 2007, Revenue increased 10.5% Increasing sales in the electronics and games Cyber-Shot NO.2 digital camera Company Analysis

Future 1.8 million Japanese Yen Facilitate the customization service Company Analysis

International Expansion America Sony Euro Switzerland UK Germany France China - most important - large potential Expansion in electronic field

Horizontal Global Expansion Entertainment Sony Music Entertainment - founded by Sony and CBS in 1968 Sony Pictures Entertainment - took over Columbia TriStar Motion Picture Group in subsidiaries in Hong Kong, Madrid - merged with MGM in the largest film company International Expansion

Global Expansion Strategy core technology company philosophy key strategic markets Globalization All the branches in the world share the same technology and company culture. International Expansion

Localization In operation: localized R&D, procurement, production, distribution and sale In talent: invests the local talents Make overseas R&D center The importance Advantages: - the cycle of R&D shortened - make better use the talents and capital all of the world - cross-border collaboration International Expansion

Digital Camera Manufactory: - produced not only in Japan but other Asian countries (Premier Image Technology &Abco) - cooperation with Carl Zeiss AG, (a German manufacturer) International Expansion

Marketing: the market share of Sony In China, Sony is the leader in this market areaSonyOther Brands U.S.37%63% Europe12%78% International Expansion

Challenges The continuous price reduction - the brand image - lead to a shortage of capital The image of Sony is too complicated - In India, SPE - In Japan, an electronic company - In U.S., an Entertainment company International Expansion

Sony’s main competitors include Canon, Nikon, Kodak, Samsung, and Panasonic. Competitor Analysis

Canon Strong technical strength and marketing ability Produces the best cameras for shooting portraits Relies on its brand recognition The number one company in the digital camera industry Not as fashionable as Sony’s Competitor Analysis

Nikon High-end consumer digital camera market No self-produced CCD ( Charge-coupled device, an electronic light sensor used in digital cameras ) Top-ranking SLR digital cameras Not well accepted by low-end market users Competitor Analysis

Kodak Boring color Appearances are less prominent Quit the digital camera industry on August 1, 2006 Wrong decision in 2006 Competitor Analysis

Samsung Strong capability in electronic technology Slim appearance and colorful design Shortage of core technologies Competitor Analysis

Panasonic Develops its own CCD sensor device The leader of electronic products Weak fundamental of optical technology Higher prices Competitor Analysis

SWOT Analysis Brand image: new and high quality, CCDs Global operations: 204 countries. Sales(2007): US(26.9%), Japan(25.6%),Europe(26.6%). Global producing ability: Japan(50%). Professional design and R&D team. Survey: 30% customers; Technology Strengths

Weaknesses SG&A expenses. Operating profits 69.3% (2007) Legal proceedings. In 2004, Eastman Kodak VS Sony for 10 patents. Not easy to operate. Survey: 24% customers. SWOT Analysis

Opportunities Business reorganization: $1.2 billion and $0.3 billion in 2006 and Partnership with FIFA (Federation International de Football Association), 2007,8,40,2 SWOT Analysis

Threats Integration of alliances and joint ventures. S-LCD(Samsung) SONY BMG (Bertelsmann) Cultures and Interest Conflicts. Raw material prices. $350 (2008). Intense competition. Intense competition SWOT Analysis

Recommendations Do not make use of Memory Stick Short term To expand in the luxury business

To contribute to the environment protection Value-added activities on value chain. - market research - sourcing - production - marketing - after-sales service Intellectual property rights & high-tech talent, Suit Long term Recommendations