critical note 3

critical note 3 - software made available. Sony however,...

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In the article, “The Firm Matters, Not the Industry” argues that, “Organizations that have become mature and suffer from poor performance typically view themselves as prisoners of them environment.” This is simply not true in many cases. For instance, take the videogame industry. It is well established and highly competitive. The three major players are Sony, Nintendo, and Microsoft. Sony has been the dominant company for nearly a decade until recently. They are now underperforming in every area, which is surprising. In an article from the Financial Times , “Sony Rules out PS3 Price Cut for Christmas” the Kazuo Hirai the president and chief executive, feels that their system is a bargain compared to the other video game consoles on the market. Yet Sony is loosing money on every system sold; furthermore, they are drastically behind in the sales department. Sony is even trailing Microsoft the new comer to the market. Previously they failed due to lack of experience and not taking a more global approach to both console design and
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Unformatted text preview: software made available. Sony however, has done both these things and is still trailing in a high growth industry nonetheless. This however, is not the fault of Sony’s position in the industry since they were clearly the leader earlier. It could be due to economic downturn, which has forced people to cut back money in all areas, though Sony feels they will prevail despite this. Another reason for their poor position could be merely changing preferences in gaming, going toward the more casual and open approach of Nintendo’s Wii console. The book claims that firm’s contest that firms grasp at the wrong areas to get out of a bad position yet Sony has not. They are attempting to change and roll with the tides of the industry proving that this view is an overly simplified and cannot explain all industries. Harding, Robin. “Sony Rules out PS3 Price Cut for Christmas”. Financial Times . October 12, 2008....
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This note was uploaded on 09/25/2011 for the course BUS 690 taught by Professor Amartinez during the Spring '10 term at S.F. State.

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