SONY VS SAMSUNG PPT - SONY vs SAMSUNG The Inside Story of...

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SONY vs SAMSUNG : Claire Caudron & Evan Wong The Inside Story of the Electronics Giants’ Battle for Global Supremacy
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AGENDA Background on Sony Background on Samsung Sony’s global strategy Samsung’s global strategy Discussion & questions
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MARKET CAPITALIZATION OF SONY AND SAMSUNG ELECTRONICS
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CHANGING PERCEPTION OF SAMSUNG 2002: Sony is a model for their brand image – “they learned from us” 2003: inquired about what Samsung is doing every week 2006: Samsung is a first rate company
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Began as a start-up in 1946 Created by Ibuka Masaru and Akio Morita 1954 : they obtained the license to produce transistors 1st transistor radio 1958: changed its name to Sony Expanded into different business areas
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AUDIOVISUAL 1960s: Trinitron technology and CRT TV 1979 : the Walkman Late 90s: released WEGA Dominant player in high-quality TV market 2005: Sony, Phillips and Samsung competed in LCD TV sector and digital camera sector
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ENTERTAINMENT 1968: joint venture with CBS records + acquired the remaining shares in 1988 became Sony Music Entertainment (Sony BMG since 2004) 1989 : acquisition of Columbia Pictures Sony Pictures Entertainment Just behind Universal in the music industry/biggest film company in the world
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GAMES 1993: Sony computer entertainment is established 1994: PlayStation is Sony’s 2 nd biggest hit PlayStation 2 in 2000, PSP, PlayStation 3 in 2006 and now PlayStation 4
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NETWORK, IT AND FINANCIAL BUSINESS 1996 : set up a new company that developed a home multimedia computer called VAIO Joint partnership with Ericsson in 2001 Enter the financial service sector
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A subsidiary of Samsung group 1969: Samsung Electronics is established Began in 1970 by producing black-and- white TVs (outdated product at the time) It is Vertically integrated in the group From an obscure OEM entity to a leading producer
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SEMICONDUCTOR DIVISION AND THE LCD DIVISION Memory business, System LSI business Market leader in DRAM, SRAM, flash memory LCD based on the TFT technology used for notebook PCs, monitors and TVs 2004 : joint venture with Sony called S-LCD Current market leader in the LCD sector
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COMMUNICATIONS 1988: Samsung GTE Communication merged with Samsung electronics Expanding strongly: - explosive growth of the market for 2 nd generation mobile phones - decision from the Korean government to choose CDMA-based system as the only standard for the 2 nd - generation phones Now : mobile phones are Samsung Electronics’ flagship product
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SONY’S PERFORMANCE
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SAMSUNG’S PERFORMANCE
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ANALYSING PERFORMANCES Sony’s stagnation Samsung’s rise Their hit products became outdated with digitalization Not able to release any new ‘wow’ products Past successes obstructed the future Been preoccupied with synergies between hardware and software content Sony needs “better integration” Samsung identified trends in the
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