SONY E-READERTEAM #5

Taylor KuceraCassandra Pastore

Nicole CoumouKara McDonald

Pavel Lubov

About Publishing Industry:Industry is changing from paper to electronic

format.

About Us:Leading manufacturer of audio, video,

communications and information

technology products for the consumer and

professional markets, making Sony one of

the most widespread entertainment

companies in the world.

Our Mission:Provide our customers with a variety of

innovative products, content and services world-wide.

Pursue the dreams of our customers.

Adapt unique products to individual needs of varying demographics by bringing to our customers advanced technology at economic value.

Our Vision: Generate the largest market share by becoming

the leading provider of the electronic book industry.

Partner-up with diverse publishers.

Provide customers with intellectual content at affordable prices.

Offer customers resourceful and sophisticated technology useful for everyday life.

Goals:Focus on electronics, entertainment and

financial services sectors. Represent a wide range of business.

Remain globally unique.

Aim to emotionally touch and enthuse customers.

Four Strategic Priorities:Consistent profitability in our core hardware

business.

Innovative hardware, software and services.

New customers and geographies.

Environmentally conscious products and processes.

About the Sony E-reader:Touch screen

E-ink display

Pictures, audio, drawing pad

Make notes, highlight documents

Lacks: wireless connection, text to talk feature, back

lighting

E-reader Market:

Winning to Us:

Our target is to reach a 40% market share within the

e-reader industry.

Competition:Amazon, Kindle

Samsung, Edge

Barnes & Noble, Nook

Generic Strategies: Scope of Arenas

BROAD:

NARROW:

ECONOMIC LOGIC Low-Cost Leadership Differentiation

Cost Leadership: PUBLISHERS

Differentiation:APPLE I - PAD

Integrated PositionEdge e-reader

Stuck in the MiddleNet book

Focused Cost Leadership: Focused Differentiation:

SONY E-READER AMAZON KINDLE

VRINEVALUABLE: Electronic versions are cheaper to create

than printed books. Published quicker than standard books. Versatile than traditional books.

RARE: Fairly new market. Not recognized by many consumers. Capacity to hold up to 2,000 electronic books.

INIMITABILE: Many other styles and brands available (ex: Amazon’s Kindle)

Some versions provide similar applications. Competitors in the market with similar

products.

NON-SUBSTITABILITY: E-books substitute standard printed books. No other product on the market that provides

electronic versions of books than e-readers.

EXPOLTABLITY: Versatile to customers, can be used in everyday life.

Anyone can use it. Currently on the market.

PESTEL

Five-Forces

Degree of Rivalry

HIGH

Supplier Power

Low -

Medium

Threat of New Entrant

(and Entry Barriers)

HIGH

Threat of Substitutes

Medium -

HIGH

Buyer Power

Low - Medium

Complements

- Computers

Profit Pool

Why we will be successful:

Simplicity of product

Existing alliances (raw material providers,

publishers)

Brand loyalty

Price differentiation

Conclusion:

Establish alliances with publishers.

Stick with simple and easy to use device.

Add additional features. (online book store, wireless feature)