the Sony store Introduced in Canada in stores Targets women Showcases products available for purchase online

On-line Operations Corporate website Links to Sony Style and Sony Store sites Product and pricing information Financing, delivery and warranty options Order tracking

Online Target Market Consumers who value convenience Geographical and temporal constraints Consumers already familiar with products

Manufacturer Warehouse Sony Store Sonystyle.ca End Consumer Channel Structure

Sonystyle.ca channel flows Payment and Financing Risk Ordering Physical Possession Ownership Promotion

Demand Facilitation of Search Assortment and Variety Supply Elimination of contact point Demand and Supply Side Factors

Service Outputs Bulk Breaking Spatial convenience Waiting and delivery time Assortment and Variety

Sony Store Gap Analysis BULK-BREAKINGSPATIAL CONVENIENCE WAITING AND DELIVERY TIME ASSORTMENT AND VARIETY LEVEL PROVIDEDHighLow OK EFFICIENCYHighLowOK SOURCE OF PROBLEMLow quantities demanded by consumers Must travel to major urban center Shipping time from wholesaler to retailer Units exceed Capacity of store ENVIRONMENTAL- MANAGERIAL BOUNDS Lack of information internally Taxes differences in each province Lack of information OUTCOME DESIREDIncrease capacity of store for inventory/frequency of purchase Reach more consumers Next day delivery Offer all lines of products manufactured by Sony TACTICS TO CLOSE GAPIncrease capacity of retail outlets to offer all of Sony’s line of products to consumers. PREDICTED CHANGE IN CHANNEL PERFORMANCE Increased efficiency and reduced delivery time. Increasing offerings of products in store will reduce costs of transporting goods from wholesaler to retailer to consumer.

Sonystyle.ca Gap Analysis BULK-BREAKINGSPATIAL CONVENIENCE WAITING AND DELIVERY TIME ASSORTMENT AND VARIETY LEVEL PROVIDEDHigh: customer buys single unit High: on-line reaches everyone with the internet Low: anywhere from 1 -7 days High: can locate all products offered by Sony EFFICIENCYHigh: no need for traditional “bricks & mortar” system High: targets anyone with internet; convenience for time pressed people Low: multiple points and shipments High: access to all Sony products SOURCE OF PROBLEMNo demand for bulk purchases in consumer electronics Certain consumers do not have access to the internet All products purchased online need to be shipped to end user No access to other brands ENVIRONMENTAL- MANAGERIAL BOUNDS Shipping rates/method s of transporting specific products Geographical barriersSystem crashes/viruse s could cause problems in the ordering process Barrier through management to focus attention exclusively on Sony brand OUTCOME DESIREDTo increase frequency of purchase To increase consumers use of Sony online Decrease delivery time as much as possible Continue to offer all Sony products online TACTICS TO CLOSE GAPAdd another distribution center in Western Canada. PREDICTED CHANGE IN CHANNEL PERFORMANCE Costs will fall due to a reduction in delivery time and transportation costs of shipping individual products Delivery will be 4 days or less

Tutorials and Emulators Additional after-sales service FAQs Timely and consistent information On-line Support System

Conflict Resistance from retailers Cannibalization of sales Potential loss of retailers

Recommendations Establish distribution center in Western Canada Increase product offerings at Sony Store Implement use of EDI Increase capacity of stores

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