Sony Playstation 3 Case Study Essay

5029 Words Aug 10th, 2011 21 Pages
Page

COMPANY BACKGROUND 2
SWOT ANALYSIS 3
STRENGTHS 3
WEAKNESSES 4
OPPORTUNITIES 6
THREATS 7
Threat of Competitor 7
Threat of Buyer 7
Threat of Suppliers 7
Threat of Substitutes 8
Threat of New Entrance 8
Other threats 8
PROBLEMS / ISSUES 9
Lose of Market Share 9
Unethical Business Strategy 9
Product Disadvantage/Defect 10
Expensive Product, High Manufacturing Cost and Negative Profit 11
Differentiation 12
Over Confidence 12
Longer Software Development Cycle 12
Heavy Criticism from Media 13
SOLUTIONS AND RECOMMENDATIONS 14
Market Strategy
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Since the company was established, Sony had produced many different products in the World market. They have made an impact in the video game market, the PC market, and especially the television market and there are still numerous others. Their Play Station 2 enjoyed a huge success in the market thus made Sony as a leader in gaming industry.

PS3 system is powered by the Cell Broadband EngineTM, revolutionary microprocessor that leapfrogs the performance of existing processors giving the PS3 system supercomputer like power and performance. It also equipped with a built in Blu-rayTM Disc player so users can enjoy high definition gaming and movies. Blu-ray offers developers unprecedented storage capacity so they can fully express their creativity and pristine picture quality at 1080p, the highest definition resolution available today. It supports a broad range of displays from conventional or standard TVs to the latest full HD flat panel displays.

As well as gaming it also allows users to access internet and allow them to play video or audio files. The PS3 system comes standard with Giga-bit Ethernet and a pre-installed upgradeable Hard Disk Drive (HDD) so user can download a variety of content as well as access online games and services over the networks.

WEAKNESSES
Sony’s biggest and most recent weakness is their lack of innovation with PS3. Sony focused on digital technology when building the PS3 and it has the ability to export

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