STRATEGIC MANAGEMENT: MINI CASE 11 - SONYS SILOS PREVENT COLLABORATION ACROSS DIVISION

(Rothaermel, 2013)

Fairuz Nizam Mohd Joned EMBA-HCM- 121526 Azian Ibrahim EMBA-HCM- 121527 Jannet Anthony EMBA-HCM-121529

1. Why had Sony been successful in the past (e.g. with the introduction of the Walkman, PlayStation, the CD, and the VAIO computer line? Its ability to leverage on technologies well and ahead of its competitors; to create innovative and high quality products for its customers which contributed to increased sales and revenues. 2. What was Mr. Ideis assessment of strategic alliances vs. M&As? Do you agree or disagree? Support your assessment. Cooperation and collaboration are easily forged when they are voluntary and both parties come to the table with equal worth - skills and knowledge which complement one another. With hard alliances, M&As are more of a survival of the fittest in a dog eat dog market environment. Culturally the companies in the M&A are two different entities forced to work together. In this case, time & resources are wasted in getting buy-ins. Cultural assimilation must be forged before real collaboration can begin. 3. Why do you think Apple succeeded in the digital portable music industry, while Sony failed? Apple was proactive, they seized on the strategic window of opportunity. It moved faster in anticipating the change in market demand i.e. customers needs for portable music digital while balancing music studios interest in protecting their music. It positioned its products as a lifestyle a need as opposed to a want.

4. What could Sony have done differently to avoid failure? Centralize its centre of operations Create open communication channels - specific face-to-face meetings to share, brainstorm, Devise their strategic plans and move alongside customers needs and be proactive towards technological and market change. Push for disciplined company-wide collaboration to find a differential advantage in the eyes of the customer. 5. What recommendations would you give Sonys CEO to help them compete againsts Apple? Find a segment focus & restructure around the focused segment. Apply most of their resources in the most productive segment. Acquire within the segment - smartly & aggressively - to gain market share & economies of scale, reduce on manufacturing costs and most importantly have access to new technologies & patents. Refine on quality control - Sony has strength on branding and consumers generally believe Sony products are reliable & of good quality. Sony needs to refine on quality control.