Sony : the launch of the MiniDisc

Résumé du document

This document focuses on Sony's use of a "Global Localization" strategy during the launch of the MiniDisc in 1992.

Sony is a leading Japanese consumer electronics brand (Case study, graph, p. 2), known through its universal and language-free brand name "Sony". Its global reputation is also reflected by the fact that it is ranked number two in the global brand power league, just after Coca-Cola.

A key to Sony's success is its "global" status, a status achieved in the 1970s when Sony became the first Japanese company to be listed on the New York Stock Exchange. Just two years later, Sony opened its first American factory, with European production starting in 1974. By 1985, the concept of "Global Localization" was well established, with 70% of sales coming from outside of Japan. (Case study, p.1)

Sony's uses a concept of "Global Localization" (coined by its chairman and cofounder, Akio Morita). In other words, Sony tries to "think globally and act locally". As much of Sony's business as possible is conducted locally, by local people, without sacrificing the strengths and advantages of a truly global enterprise; this shows that Sony attempts to combine poly- and geocentric orientation for its international and global marketing approaches (G. Hankinson, (2007); W.J. Keegan, (2003)).

Extraits

[...] By the end of the 1980s, the Compact Disc format had become an established technology. However, digital audio technology such as CDs was still limited to home use. For portable and recordable media, consumers were limited to analogue audiocassettes. Sony President Norio Ohga saw a clear gap in the market: miniaturised, fully portable, recordable disc which would complete the digital sound revolution”. The MD 2.1 The Global Strategy Though the MD would create an entirely new market segment, Sony's market research had shown that, globally, consumers' requirements were the same, meaning Sony could produce an identical product worldwide. [...]

[...] Lastly, continued success of MD may mean production capacity in Japan is exceeded, resulting into the establishment of new plants outside Japan Do you think it was successful? How successful do you think it was? 3.1 Good solutions Good solutions of the “Global Localisation” concept appear to have been: Product: The MD hardware: uniform global product. The MD software: adapted to local music tastes. Promotion and people: Global branding, marketing guidelines and advertising were centralised, but local teams were given the autonomy to decide how best to position MD in their regions. [...]

[...] “Global Localisation” is increasingly important when operating in the highly competitive global environment. Creating sustainable competitive advantage by emphasising a global brand and the trust relationship that comes with it whilst still appreciating local differences is key for any multinational company who wishes to succeed in the future. (Editorial British Food Journal, 2001; Editorial: Harvard Business Review, 1985) Reference List CASE Study: The global localisation concept and the launch of the MiniDisc”; by Sony and Graham Hankinson Textbooks Frances Brassington and Stephen Pettitt, (2003), Principles of Marketing, 3rd edition, Prentice Hall: London Sven Hollensen (2004): Global Marketing, a decision-oriented approach, 3rd edition, Prentice Hall: London Keegan, W.J. [...]

[...] It was imperative for Sony that the global brand image was maintained globally. Finally, Sony also used a global pricing strategy at the time of launch. The reason for this was to maintain Sony's position as a leading consumer electronics enterprise by emphasising the price premium (skimming pricing- strategy) of new technology from a sophisticated brand (Frances Brassington and Stephen Pettitt, (2003)) The local strategy Apart from the global elements, the local aspects of Sony's “Global Localisation” strategy were just as significant in making the product a success. [...]

[...] A key to Sony's success is its status. A status achieved in the 1970s when Sony became the first Japanese company to float on the New York Stock Exchange. Just two years later, Sony opened its first American factory, with European production starting in 1974. By 1985 the concept of “Global Localization” was well established, with 70% of sales coming from outside of Japan. (Case study, p.1) 2. The concept of “Global Localisation” Sony's uses a concept of “Global Localization” (coined by its chairman and cofounder, Akio Morita). [...]