Case Study Sony.docx - Case Study And the winner is Sony\u2019s Blu-ray the high-definition DVD format war 1 What does this case tell us about whether or

Case Study Sony.docx - Case Study And the winner is...

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Case Study: And the winner is Sony’s Blu-ray - the high-definition DVD format war 1. What does this case tell us about whether or not it is the best technology and/or being first in the market that determines the winner of these product format battles? There are advantages for being first in the market, however it does not mean that the first movers are the winner of the product format battles. For example, in the competition between Blu-ray by Sony and HD DVD by Toshiba, Blu-ray is the winner although Sony and Toshiba have the same dimension and standard. Other than that, the best technology is not the only factor that determines the winner. For instance, in 1980s, Sony’s Betamax video format lost out to VHG of JVC although it was superior technically. There are other factors to determine the winner in the battles, such as marketing strategies, licensing, and consumer presence. It is true that Sony has taken first mover advantage to surpass Ampex Corporation. Its technology has given Sony a competitive edge to conquer the market. However, the company realized that they should also take other factors into considerations in order to stand a strong position in the marketplace. 2. Illustrate some other business sectors where different formats coexist and some where a single format is preferred. The next generation of HD-player is successful product due to the decision made by Sony, which is to incorporate its Blu-ray playback format into PS3. The different formats can coexist id Sony has cooperated with Apple. By incorporating Blu-ray into Apple’s computer drive, both companies are beneficial. Sony can earn a higher profit with the incorporation, whereas Apple can move to another field, which is delivering movies across the internet. Apart from that, there are some business sectors that a single format is preferred. For instance, digital video publishers have to make a choice between Google’s royalty free format and H.264 industry standard. The coexistence of both format leads to the loss of

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