Seminar I, October 12-16, 2009

Welcome to the Seminar Section of Principles of Marketing MKT 1112

Seminar I
Seminar Tutor: NG


Topics Covered:

A. Important Ground Rules

B. How to Analyse a Case

C. Case Study: Sony Shock


A. Important Ground Rules

By now, you should have gone over your class handbook and be completely clear about what is expected of you to complete this module successfully.

By now, you should have bought the required text for the module. You are also highly encouraged to consider buying the recommended texts.

By now, you should have attended a Learning Resources training seminar at the Library.

You have to attend both the lectures and the seminars to be able to pass the module. If you miss more than 20% of either the lectures or the seminars, you will fail the module. Missing 20% of the lectures or seminars equates to missing 1 day of every five days of the working week in professional life, which in return is likely to mean that you would be fired.

If you come to the seminars any later than 10 minutes without a valid excuse, you will not be allowed into the seminar and you will be marked as absent.

You are required to come to the seminars having done the work required of you. Otherwise you will be asked to leave the class for that day.

You are not to use mobile PDA devices, phones, laptops dusing the seminars. If you do, you will be asked to leave the class for that day.

Please turn off all mobile deices. otherwise you will be asked to leave the seminar for the day.

You are required to respect each other's time and presence in class. So absolutely no talking among students! If you have a question, you will have to ask the seminar tutor. If your discussion is not class related, you will be asked to either follow the class rules or leave the seminar for that day.


B. How to Analyse a Case

Step 1
- Read the case thoroughly with a view to understanding the key marketing issues illustrated in the case
- Discriminate between information which is relevant and that which is superfluous and/or ambiguous
- Select and apply relevant theoretical marketing models.

Step 2
- Define clearly and concisely the basic problems in the case
- Identify main issues, e.g. increased competition, changes in underlying consumer tastes. Do not be confused with “symptoms” - e.g. declining market share, lower profitability.
- Identify the key decisions to be made, e.g. how to expand, how to position the product, how to increase competitiveness, etc.

Step 3
- Company strengths and weaknesses, external opportunities and threats (SWOT Analysis).
- Use the Information and facts provided in the case to analyse the situation: the market, demand…etc.

Step 4
- Based on the analysis in 3, identify possible alternative strategy solutions to cope with the problem defined in 2.
- State assumptions, which are made in order for the strategies to work.
- Evaluate the pros and cons of each alternative. This should form the main focus of your attention.

Step 5
- Recommend a course of action selecting the alternative proposed in step 3.
- Which would you consider most appropriate to solve the problem identified in step 2 taking into consideration the analysis made in step 3?

Step 6
- Edit your recommendations based on the latest Web-information that you can access by going to the company’s web site.


C. Case Study: Sony Shock

Teaching Objectives:
To identify the rapidly changing nature of the marketing environment and its impact on marketing strategy.
To help delineate between micro and macro environmental factors
To identify the need for continuous innovation and product development.
To conduct a SWOT analysis.
To discuss how firms can react to changes in the marketing environment.

Questions:
Discuss the importance of product innovation to the future success of Sony, in regard to the changing marketing environment.
Conduct a SWOT analysis on Sony.
What are the strategic options available to Sony, in the wake of “Sony Shock”? Furthermore recommend a course of action for Sony.


Q1 Importance of Product Innovation to Sony’s Future Success
Product innovation enables Sony to:
Retain is brand status
Benefit from innovative products – higher prices
Add to the brands reputation as innovative products are seen as technologically superior
Maintain dominate industry position
Reduce the risk of technological leapfrog
Set proprietary standards
Creates demand
Acts as a barrier to entry for potential new entrants
Helps create new markets
Helps reposition a business
Helps in defending market share


Q2. SWOT Analysis: Strengths
Global Size and Market Share
Presence in numerous markets
Solid brand image
Creates market-defining products
Experience and strength of brand
Level of vertical integration
Strength of "Playstation" Brand
Japanese Strength in Electronic Engineering Design
Alliances with other manufacturers
Exposure to global markets
New leadership


Q2. SWOT Analysis: Weaknesses
Overcapacity
Too broad a product range
Low profit margins
Collapse of Cathode-Ray Television market
Bureaucratic culture
Sony’s development of new technology - too slow
Failing to focus on its core operations
Slow to market products
Over reliance on Playstation


Q2. SWOT Analysis: Opportunities
Expansion of global presence
Taking advantage of producing in low cost economies
New technology which could become industry standard, encourage upgrading to newer versions and leading to new product opportunities
Model count reduction and investment in manufacturing capabilities to improve efficiencies.
Sony divesting non-strategic assets
Utilize electronic platforms to distribute products.
Further integration of business
Creating interoperability
Develop crossover products


Q2. SWOT Analysis: Threats
Increased foreign competition
Increased commoditization of products
Technologically Leapfrogged
Changing technology altering the competitive landscape
Boardroom clashes with partners such as BMG and Ericsson
Heavily reliant on Japanese market
Reliant on fickle entertainment industry
Failure to establish Blu-Ray as a proprietary standard
Failure to successfully implement turnaround strategy


Q3 Strategic Options:
New management team
Move production to low cost economies
Renew and revitalise advertising campaign and focus on brand image
Continue aggressive price promotions
Continue to reduce inventory levels
Introduce innovative products
Greater investment in R&D
Exit personal computing market
Improve distribution network
Rethink product portfolio
Consider partnerships and reorganisation