Xu,Xiaoxuan (Connie) Zhang,Yao (Stephanie) Liu,Zhenzi (Christina)

1. Xu,Xiaoxuan (Connie) Zhang,Yao (Stephanie) Liu,Zhenzi (Christina) Nov.10th ,2008

2. Industry Analysis • Company Analysis (History, Current, Future) • International Expansion • Competitor Analysis • SWOT Analysis • Recommendations

3. Industry Analysis • The beginning of consumer digital camera era 1995, Casio QV-10

4. Industry Analysis • The becoming of mainstream product • Pocket-size and fashionable • Matured digital camera industry

5. Industry Analysis • SLR digital camera & Ultrathin digital camera 2005,SonyT7 2003, Nikon D70

6. Industry Analysis • Fierce competition between camera makers

7. Industry Analysis The Tendency of Digital Camera Industry: • The designs of the digital cameras become more classic and stylish. • A higher level of face detection technology and intelligent scene recognition technology make shooting easier.

8. Industry Analysis The Tendency of Digital Camera Industry: • Third, the use of touch-screen Sony T300

9. Company Analysis History • In 1945, Masaru Ibuka and Akio Morita, Tokyo Telecommunications Engineering Corporation • In 1958, New Name • First electronic camera, Mavica, in 1981 magnetic recording， embryonic form

10. Current Company Analysis • Leader • Digital cameras, recorded music, PC • The headquartered is in Tokyo • 2007, Revenue increased 10.5% • Increasing sales in the electronics and games • Cyber-Shot • NO.2 digital camera

11. Future Company Analysis • 1.8 million Japanese Yen • Facilitate the customization service

12. International Expansion Expansion in electronic field • 1960 - America • 1980 - Sony Euro Switzerland UK Germany France • 1996 - China - most important - large potential

13. International Expansion Horizontal Global Expansion Entertainment • Sony Music Entertainment - founded by Sony and CBS in 1968 • Sony Pictures Entertainment - took over Columbia TriStar Motion Picture Group in 1989 - subsidiaries in Hong Kong, Madrid - merged with MGM in 2004 - the largest film company

14. International Expansion Global Expansion Strategy Globalization All the branches in the world share the same technology and company culture.

15. International Expansion Localization • In operation: localized R&D, procurement, production, distribution and sale • In talent: invests the local talents Make overseas R&D center • The importance • Advantages: - the cycle of R&D shortened - make better use the talents and capital all of the world - cross-border collaboration

16. International Expansion Digital Camera • Manufactory: - produced not only in Japan but other Asian countries (Premier Image Technology &Abco) - cooperation with Carl Zeiss AG, (a German manufacturer)

17. International Expansion • Marketing: the market share of Sony In China, Sony is the leader in this market

18. International Expansion Challenges • The continuous price reduction - the brand image - lead to a shortage of capital • The image of Sony is too complicated - In India, SPE - In Japan, an electronic company - In U.S., an Entertainment company

19. Competitor Analysis Sony’smain competitors include Canon, Nikon, Kodak, Samsung, and Panasonic.

20. Competitor Analysis Canon • The number one company in the digital camera industry • Strong technical strength and marketing ability • Produces the best cameras for shooting portraits • Not as fashionable as Sony’s • Relies on its brand recognition

21. Competitor Analysis Nikon • Top-ranking SLR digital cameras • High-end consumer digital camera market • Not well accepted by low-end market users • No self-produced CCD • (Charge-coupled device, an electronic light sensor used in digital cameras )

22. Competitor Analysis Kodak • Wrong decision in 2006 • Boring color • Appearances are less prominent • Quit the digital camera industry on August 1, 2006

23. Competitor Analysis Samsung • Slim appearance and colorful design • Strong capability in electronic technology • Shortage of core technologies

24. Competitor Analysis Panasonic • The leader of electronic products • Develops its own CCD sensor device • Weak fundamental of optical technology • Higher prices

25. SWOT Analysis Strengths • Brand image: new and high quality, CCDs • Global operations: 204 countries. Sales(2007): US(26.9%), Japan(25.6%),Europe(26.6%). Global producing ability: Japan(50%). • Professional design and R&D team. Survey: 30% customers; Technology

26. SWOT Analysis Weaknesses • SG&A expenses. Operating profits 69.3% (2007) • Legal proceedings. In 2004, Eastman Kodak VS Sony for 10 patents. • Not easy to operate. Survey: 24% customers.

27. SWOT Analysis Opportunities • Business reorganization: $1.2 billion and $0.3 billion in 2006 and 2007. • Partnership with FIFA (Federation International de Football Association), 2007,8,40,2

28. SWOT Analysis Threats • Integration of alliances and joint ventures. S-LCD(Samsung) 2004. SONY BMG (Bertelsmann) Cultures and Interest Conflicts. • Raw material prices. $350 (2008). • Intense competition.

29. Recommendations Short term • Do not make use of Memory Stick • To expand in the luxury business

30. Recommendations Long term • To contribute to the environment protection • Value-added activities on value chain. - market research - sourcing - production - marketing - after-sales service • Intellectual property rights & high-tech talent, Suit

31. Any Questions?

32. Thanks!