Assessment of why the Sony Walkman brand lost out to iPod in terms of its position and level of demand in the marketplace
Companies studied:
Apple and Sony
by
Markus B. Baum
Marco Hackstein
Marcel Mehling
Abstract:
The managing director of Sony, Japan has asked a report based upon an assessment of why his Sony Walkman brand lost out to iPod in terms of its position and level of demand in the marketplace. This analysis provides analysis such as SWOT and different position mapping or other techniques, which will lead to an understanding of the reasons the iPod product has remained strong over the past few years. The strategic implications will also discussed as well an recommendations as to the future direction and improvement of Sony personal player products.
Keywords: Sony, Apple, Ipod, Iphone, analysis, SWOT, position mapping, strategy, strategic implications, market analysis, macro environmental, PEST, market profile, key factors of success integrated system, repositioning strategy, marketing mix, promotion, product, price, place, 4P, survey, Porter's Generic Strategies,
Table of Contents
1 INTRODUCTION
2 ANALYSIS
2.1 Market analysis
2.1.1 Macro environmental PEST-Analysis
2.1.2 Market profile and prospects
2.2 Analysis of Apple’s iPod and Sony’s Walkman
2.2.1 The case of Apple’s iPod - key factors of success
2.2.1.1 Product
2.2.1.2 Integrated System
2.2.1.3 SWOT - iPod
2.2.2 The case of Sony Walkman - key factors of failure
2.2.2.1 Product
2.2.2.2 Integrated System
2.2.2.3 SWOT - Walkman
2.3 Conclusion
3 RECOMMENDATION
3.1 Repositioning strategy
3.2 Marketing Mix
3.2.1 Promotion
3.2.2 Product
3.2.3 Price
3.2.4 Place
Objectives & Core Topics
The primary objective of this report is to evaluate the strategic decline of the Sony Walkman brand in comparison to the Apple iPod, specifically focusing on market position and consumer demand. By employing various management frameworks, the research aims to identify the specific reasons behind Apple’s dominance in the portable digital music sector and provide actionable recommendations for Sony to effectively reposition its own personal audio products.
- Strategic market analysis using PEST and SWOT frameworks.
- Evaluation of product design, usability, and innovation between Apple and Sony.
- Assessment of integrated systems (hardware, software, and online distribution).
- Repositioning strategies and marketing mix recommendations for the Sony brand.
- Analysis of consumer perception based on empirical survey data.
Excerpt from the Book
2.2.1.1 Product
Apple introduced its first iPod in October 2001. With regard to technology, they applied different strategies in comparison to their competitors. Apple used an ultra-thin hard drive with skip protection, an energy efficient battery and installed an easy connection to the integrated system (see 2.2.1.2).
A unique design is often the best way to differentiate a product from the competition (Kotler and Keller, 2009, p. 365). Apple’s key innovation was a simple but easily recognisable design. With its typical white ear buds and the simple quadrate form (small and sleek) without any superfluous accents, the new “iPod-Design” was created and was a stark contrast to its competitors in the MP3-market. The research of Reppel, Szmigin and Gruber (2006) points out that the design of the iPod is very important to the user and makes them proud of having such a “cool” product and “helps them feel individual”.
Short learning curve and generally user–friendly interface were Apple’s other important goals. To this end, they developed the Click-Wheel, which allows easy scrolling with just the thumb (target: just three clicks to start a song). Compared to the iPod-concept, all competitors’ players appear extremely complicated.
Chapter Summaries
1 INTRODUCTION: This chapter provides an overview of the rise of the original Walkman and outlines the scope of the study, which examines Sony's loss of market leadership to the Apple iPod using various analytical marketing tools.
2 ANALYSIS: This section conducts a comprehensive market analysis, including a PEST evaluation, and compares the success factors of the iPod against the failure factors of the Walkman, specifically detailing product design and integrated systems.
3 RECOMMENDATION: This final chapter suggests a strategic repositioning for the Sony Walkman brand, utilizing the four Ps of the marketing mix to improve market competitiveness and consumer perception.
Keywords
Sony, Apple, iPod, Walkman, Marketing Mix, SWOT, PEST, Product Design, Usability, Strategic Marketing, Integrated System, Consumer Electronics, Repositioning, Market Analysis, Competitive Strategy
Frequently Asked Questions
What is the core focus of this report?
The report focuses on an analytical assessment of why the Sony Walkman brand lost its market leadership to the Apple iPod, specifically comparing their competitive strategies and market performance.
Which companies are examined in the study?
The analysis focuses primarily on Sony Corp. and Apple Inc., examining their respective approaches to the portable digital music player market.
What is the primary research goal?
The main goal is to identify the key reasons for the iPod's success and the Walkman's decline, leading to strategic recommendations for future improvements to Sony's personal player product line.
Which analytical tools were used?
The authors employed several management tools, including PEST analysis, SWOT analysis, Porter's Generic Strategies, Jobber's repositioning strategies, and the traditional marketing mix (4Ps).
What is the structure of the main analysis section?
The analysis covers market profiles, an in-depth comparison of the iPod's and Walkman's product features, and an investigation into the role of integrated systems like iTunes versus Sonic Stage.
How is the brand 'Walkman' characterized by the authors?
The report highlights that while the brand is still associated with Sony, it is strongly linked to the outdated concept of a 'mobile cassette recorder' rather than the modern MP3-player market.
Why did Sony’s attempt at an integrated system fail compared to Apple's?
Sony insisted on its own proprietary, copy-protected ATRAC format, which created technical barriers for users, whereas Apple provided a more seamless and user-friendly experience through iTunes.
What is the significance of the empirical survey included in the appendix?
The survey provides primary data indicating that consumers still perceive the Walkman as an old-fashioned brand, suggesting that Sony failed to successfully transfer the brand identity to the digital age.
- Quote paper
- Markus Baum (Author), Marco Hackstein (Author), Marcel Mehling (Author), 2009, Strategic Marketing, Munich, GRIN Verlag, https://www.grin.com/document/194552
