Making Memories in High Definition as part of NUS MT4002 module

Ang Qing Zhong A0087688A Ong Xiangrong A0072333N

Teo Tze Jie A0072888L Voon Kakiong A0074717Y

Sony QX10 / QX100

Imagine a camera concept that promises you —

1 PORTABILITY,

2 IMAGE QUALITY,

3 CONNECTIVITY

“ A marriage between the image quality of a DSLR and the convenience of an iPhone.

— EARLY REVI EWER

Sony QX10 / QX100

Imagine a camera concept that promises you —

1 PORTABILITY,

2 IMAGE QUALITY,

3 CONNECTIVITY

Sony QX10 / QX100

Imagine a camera concept that promises you —

1 PORTABILITY,

2 IMAGE QUALITY,

3 CONNECTIVITY

Contents Value Capture

Customer Selection

Scope of Activities

Strategic Control

Value Proposition

5 FACTORS

*

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

• First-of-a-kind lens-style camera

• Screen provided by cellphone (function sharing)

• Battery and memory card inside

• Possibility for standalone operation without draining cellphone battery

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

• No hassle of wires, fuss-free wireless link between camera and cellphone screen

• Direct upload to social networks

• eg. Facebook, Instagram, Twitter

• High quality DSLR-like pictures

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

iPhone COMPATIBLE

Android COMPATIBLE

iPhone COMPATIBLE

Android COMPATIBLE

iPhone COMPATIBLE

Android COMPATIBLE

UNDERSTANDING HOW IT WORKS

Sample operation of the app

iPhone COMPATIBLE

Android COMPATIBLE

UNDERSTANDING HOW IT WORKS

Sample operation of the app

iPhone COMPATIBLE

Android COMPATIBLE

UNDERSTANDING HOW IT WORKS

New ways of taking pictures

Tap to focus No more self-timing shots

Self-portraits, see as you frame your shots Unique angles

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

OPTICAL ZOOM vs DIGITAL ZOOM

How it compares with the competition?

Standard 0% zoom of an airport

Optical zoom 100%— QX10

Digital zoom 100% — cell phone cameras

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

COLOUR REPRODUCTION & DYNAMIC RANGE

How it compares with the competition?

Noticeably lower dynamic range— Nokia Lumia 1020

Wider dynamic range (highlights/shadows not washed out) — QX10

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

LOW-LIGHT SENSITIVITY & IMAGE NOISE

How it compares with the competition?

Relatively noise-free— QX10 Noticeable grains— Nokia Lumia 1020

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

OVERALL CAMERA PERFORMANCE (SENSOR SIZE)

How it compares with the competition?

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

COMPETING FEATURES

C L A R I T Y L O W - L I G H T C O L O U R

OVERALL CAMERA PERFORMANCE (SENSOR SIZE)

How it compares with the competition?

QX100 Sony

RX100 Sony

V1 Nikon

comparable

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

QX100 QX10

QX100 QX10

$498 $248

Focal length 28 - 100mm

Optical zoom 3.6x

Shutter speed 1/2000 - 4s

Weight 179g

Focal length 25 - 250mm

Optical zoom 10x

Shutter speed 1/1600 - 4s

Weight 105g

QX100 QX10

$498 $248

Focal length 28 - 100mm

Optical zoom 3.6x

Shutter speed 1/2000 - 4s

Weight 179g

Focal length 25 - 250mm

Optical zoom 10x

Shutter speed 1/1600 - 4s

Weight 105g

RX100 Sony

$750

Value Proposition *

Portability 1

Connectivity 3

Image Quality 2

• Compact form-factor compared with full DSLRs

• Standalone battery

• Instant access to social media

• WiFi & NFC

• 18.2 / 20.2 MP

• 10x optical zoom

• Performance in low-light

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

THE COMPETITION

Value Proposition *

Key features of QX10 / QX100 WHAT STANDS OUT FROM THE CROWD OF OTHER CAMERAS IN THE MARKET ?

THE COMPETITION

DSLRs

Smartphones

Polaroid

P&S

Value Proposition

Connectivity 3 H I G H L O W

*

Value Proposition *

Connectivity 3 H I G H L O W

Connectivity 3 H I G H L O W

C A M E R A T Y P E E A S E O F U P L O A D I N G O N T O S O C I A L M E D I A

Smartphones

DSLRs, Compact P&S

Polaroid

HIG

H

LO

W

Value Proposition

Portability 1

Image Quality 2

H I G H L O W

HIG

H

LO

W

*

Value Proposition

Portability 1

Image Quality 2

H I G H L O W

HIG

H

LO

W

*

* THIS SEGMENT IS

unserved + sought after

Value Proposition *

Image Quality 2

HTC One

4 ‘Ultra-pixel’ f/2.0 max aperture

Samsung S4

13 MP f/2.6 max aperture

Apple iPhone 5S

8 MP f/2.2 max aperture

Nokia Lumia 1020

41MP f/2.2 max aperture

QX100 QX10

Value Proposition *

Portability 1

Connectivity 3

Image Quality 2

• Compact form-factor compared with full DSLRs

• Standalone battery

• Smooth pairing with Wi-Fi and NFC

• 18.2 / 20.2 MP

• 10x optical zoom

• Performance in low-light

Value Proposition *

Portability 1

Connectivity 3

Image Quality 2

• Compact form-factor compared with full DSLRs

• Standalone battery

• Smooth pairing with Wi-Fi and NFC

• 18.2 / 20.2 MP

• 10x optical zoom

• Performance in low-light

Value Proposition *

Proposing new value propositions DIRECTIONS SONY CAN WORK TOWARDS TO CREATE NEW VALUE PROPOSITIONS ?

• Improving the technology —

• Establish faster set-up times between cellphone and lens

• Allowing users to save in RAW (and JPG) image formats

• A more user-friendly PlayMemories app which allows editing within the app itself

• More photo modes (eg. self-timer, sweep panorama, filters, intervalometer which are achievable over software updates)

Value Proposition *

Proposing new value propositions DIRECTIONS SONY CAN WORK TOWARDS TO CREATE NEW VALUE PROPOSITIONS ?

• Establishing connections beyond smartphones —

• Wireless link to Sony (or other brands of) televisions or handheld devices for family viewing

• New software-side technology of managing photos to permit fast, priority direct upload link to social networks

• Scalable — possible to extend this to any Sony product range in future

Value Proposition *

Proposing new value propositions DIRECTIONS SONY CAN WORK TOWARDS TO CREATE NEW VALUE PROPOSITIONS ?

• Establishing connections beyond smartphones —

• Current wireless link with smartphones and tablets

Proposing new value propositions DIRECTIONS SONY CAN WORK TOWARDS TO CREATE NEW VALUE PROPOSITIONS ?

• Establishing connections beyond smartphones —

• Current wireless link with smartphones and tablets

• Proposed new wireless link to other gadgets with screens (not necessarily branded Sony, in a bid to support open innovation)

?

Value Proposition *

Value Capture

Customer Selection

Scope of Activities

Strategic Control

Value Proposition

Customer Selection *

Customer Selection *

Profile of target audience FINDING OUT WHO EXACTLY WILL BUY THE QX10 / QX100 TECHNOLOGY ?

• Tech-savvy, younger demographics (vis-à-vis technophobic, mature segments)

• Undiscriminating towards gender

• Social network users (eg. Facebook, Instagram, Twitter)

• Demand for high quality pictures

• Unique angles — self portraiture for solo travellers or group shots

Customer Selection *

Want high quality pics

BUT: limited by built-in cellphone camera

Want connectivity to FB

BUT: worried about bulkiness of DSLR

MATCHING CUSTOMER NEEDS

WITH STRENGTHS OF SONY

Customer Selection *

MATCHING CUSTOMER NEEDS

WITH STRENGTHS OF SONY

Customer Selection *

CUST

OM

ER N

EED

S

CUSTOMER TYPES

SERVED UNSERVED

AR

TICU

LATE

D

UN

AR

TICU

LATE

D

Exploited opportunities

Unexploited opportunities

Customer Selection *

CUST

OM

ER N

EED

S

CUSTOMER TYPES

SERVED UNSERVED

AR

TICU

LATE

D

UN

AR

TICU

LATE

D

Exploited opportunities

Unexploited opportunities

Sony Mirrorless

Sony QX100

Customer Selection *

Matching customer needs with company’s strengths WHY DOESN’T SONY MAINTAIN THEIR FIRST MOVER’S ADVANTAGE? ?

A U D I O

T V D I S P L A Y

Customer Selection *

Matching customer needs with company’s strengths WHY DOESN’T SONY MAINTAIN THEIR FIRST-MOVER’S ADVANTAGE? ?

• Core competency — Always trying to serve the unserved, unarticulated segments

• Diversity of products — Not focused but in most cases, Sony has first-mover’s advantage

• Strategic control — Not Sony’s strength

Customer Selection *

Matching customer needs with company’s strengths WHY DOESN’T SONY MAINTAIN THEIR FIRST-MOVER’S ADVANTAGE? ?

• Core competency — Always trying to serve the unserved, unarticulated segments

• Diversity of products — Not focused but in most cases, Sony has first-mover’s advantage

• Strategic control — Not Sony’s strength

Customer Selection *

Matching customer needs with company’s strengths WHY DOESN’T SONY MAINTAIN THEIR FIRST-MOVER’S ADVANTAGE? ?

• Core competency — Always trying to serve the unserved, unarticulated segments

• Diversity of products — Not focused but in most cases, Sony has first-mover’s advantage

• Strategic control — Not Sony’s strength

Customer Selection *

So what is Sony’s strength after all? WHY DOESN’T SONY MAINTAIN THEIR FIRST-MOVER’S ADVANTAGE? ?

• Segment market

• Identify —

• Needs in each market

• Existing products in each market

• Strength and weaknesses of each product

• Select unserved, unarticulated target segment and propose new value proposition

SONY ’S STRENGTH

Moving fast, constantly innovating

I T E R A T I V E P R O C E S S

Customer Selection *

Customer selection strategy CHOICE OF RIGHT CUSTOMER PROFILE HELPS LONG-TERM PRODUCT SUCCESS ?

• Identify niche market for first adopters to generate sufficient revenue streams for the company —

• Those who want fewer complexities of a DSLR, and retain connectivity in social networks

• An age profile of 18-30 to reach out to the tech-savvy, well-travelled, modest spending power.

Customer Selection *

Customer selection strategy CHOICE OF RIGHT CUSTOMER PROFILE HELPS LONG-TERM PRODUCT SUCCESS ?

• Lock in the right customer segments to generate more revenue streams subsequently —

• One-time sale of QX10 / QX100 device, or

• Venue-based rentals* (charged on per usage basis) gives recurring revenues

(* will be addressed in greater detail during later slides)

Customer Selection *

Customer selection strategy CHOICE OF RIGHT CUSTOMER PROFILE HELPS LONG-TERM PRODUCT SUCCESS ?

• Important to serve early (first) adopters —

• Sales to these people will then fuel innovation in subsequent iterations of improved camera design and performance

• Sustain the cost from R&D to produce a pioneer product and form a niche market for themselves

Customer Selection *

Customer Selection

Scope of Activities

Strategic Control

Value Proposition

Value Capture *

Value Capture *

Identifying dominant sources of revenue FINDING WHERE THE REVENUE STREAMS ARE ? 1 PHYSICAL SALE OF QX10 / QX100

QX10 $248

QX100 $498

1 PHYSICAL SALE OF QX10 / QX100

QX10 $248

QX100 $498

Same backend technology, different specifications,

different price points. “ ”

DIFFERENT NEEDS, DIFFERENT PROPENSITY TO SPEND

2

Value Capture *

Value network REVENUE STREAMS FOR SONY ?

• Sony’s primary revenue stream lies in the physical sale of product

• Primarily offer QX10 / QX100 lenses through retailers at MSRP

• Secondarily offer PlayMemories App for free

2 • Primarily offer QX10 / QX100 lenses through retailers at MSRP

• Secondarily offer PlayMemories App for free

Moving ahead, possibility for new revenue streams?

1 + • Venue-based rentals for

QX10 / QX100 lenses?

2 • Primarily offer QX10 / QX100 lenses through retailers at MSRP

• Secondarily offer PlayMemories App for free 1 +

• Venue-based rentals for QX10 / QX100 lenses?

RENTALS New revenue stream?

RENTALS New revenue stream?

But… how are we going to rent them? “ ”

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

Poor ambient lighting a characteristic problem in museums

RENTALS New revenue stream?

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast Taken with cellphone camera Taken with a comparable sensor size camera — (SONY RX100)

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

RENTALS New revenue stream?

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast Taken with cellphone camera Taken with a comparable sensor size camera — (SONY RX100)

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

Rental feasible for

MUSEUMS

RENTALS New revenue stream?

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

Taken with cellphone camera Taken with a comparable sensor size camera — (SONY RX100)

RENTALS New revenue stream?

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

Taken with cellphone camera Taken with a comparable sensor size camera — (SONY RX100)

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

Rental feasible for

FIREWORKS SHOW

RENTALS New revenue stream?

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

Taken with cellphone camera Taken with a comparable sensor size camera — (SONY RX100)

RENTALS New revenue stream?

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

Taken with cellphone camera Taken with a comparable sensor size camera — (SONY RX100)

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

Rental feasible for

ZOO / NIGHT SAFARI

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

But… how are we going to rent them? “ ”

Poor ambient lighting a characteristic problem in museums

Which would you choose to upload? SIMPLE THOUGHT EXERCISE

QX 10/100

Value Capture *

RENTALS New revenue stream?

• Travellers who don’t want the hassle of carrying a permanent camera

• Low-lit areas where having a DSLR lens creates a stark contrast

MUSEUMS FIREWORKS ZOO / SAFARI

• Consumer will be happy to be able to try out (rent) the QX10 / QX100 before buying

• Attract non-adopters who have never heard of it to consider buying it

Corollary Benefits

RENTALS New revenue stream?

• Consumer will be happy to be able to try out (rent) the QX10 / QX100 before buying

• Attract non-adopters who have never heard of it to consider buying it

Corollary Benefits

FREE! BRAND PUBLICITY yet creates a new revenue stream

1 PHYSICAL SALE OF QX10 / QX100

QX10 $248

QX100 $498

2 STRATEGICALLY-CHOSEN VENUE RENTALS

MUSEUMS FIREWORKS ZOO / SAFARI

Value Capture *

Customer Selection

Value Capture

Scope of Activities

Strategic Control

Value Proposition

*

Strategic Control *

How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? ?

MAKING IT APPROPRIABLE

MAINTAINING BARRIERS TO ENTRY

Strategic Control *

How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? ?

• Sony has not patented the technology yet

• Patents may be insufficient to ward off imitators

MAKING IT APPROPRIABLE

2

Strategic Control *

How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? ?

Two ways to overcome:

• Focus on software, connectivity innovation as opposed to mechanical hardware which can be easily replicable

• Integral design as opposed to modular

MAKING IT APPROPRIABLE

Strategic Control *

How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? ?

MAKING IT APPROPRIABLE

MAINTAINING BARRIERS TO ENTRY

Strategic Control *

How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? ?

• Sony’s vast product range spans from consumer-friendly smartphones to professional grade SLR/T camera lenses

MAINTAINING BARRIERS TO ENTRY

Strategic Control *

How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? ?

• Utilise Sony’s depth of expertise in UX in both areas to bridge the technology between the two as a BTE, thereby creating a niche market which naturally fortifies its barriers

MAINTAINING BARRIERS TO ENTRY

+ = QX100

Strategic Control *

How to maintain profitability WHAT SONY CAN DO TO CARVE A PROFIT STRATEGY FOR THE QX10 / QX100 TECHNOLOGY? ?

• Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE

MAINTAINING BARRIERS TO ENTRY

• Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE

MAINTAINING BARRIERS TO ENTRY

Compact Point & Shoot

DSLR/T

• Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE

MAINTAINING BARRIERS TO ENTRY

Mirrorless Micro Four-Thirds Huge sensor of DSLR/T

Compact form factor of P&S

• Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE

MAINTAINING BARRIERS TO ENTRY

3rd position in DSLR/T market

3rd position in P&S market

• Maximise Sony’s ability to move fast in the camera industry to build another layer of BTE

MAINTAINING BARRIERS TO ENTRY

position in Mirrorless market 1st

CREATION OF NEW NICHE, UNSERVED MARKET SEGMENTS

TO BE A MARKET LEADER IN

• Possibility to utilise Sony’s prevalent defend and extend strategy to continually explore new market segments with unserved needs with existing technological capabilities

MAINTAINING BARRIERS TO ENTRY

• Possibility to utilise Sony’s prevalent defend and extend strategy to continually explore new market segments with unserved needs with existing technological capabilities

MAINTAINING BARRIERS TO ENTRY

Strategic Control *

Customer Selection

Value Capture

Strategic Control

Value Proposition

Scope of Activities *

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Optics / Lenses Bought externally outsourced

Body / Sensor Constructed in-house

Battery / Memory Designed in-house

H A R D W A R E

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Optics / Lenses Bought externally outsourced

Body / Sensor Constructed in-house

Battery / Memory Designed in-house

H A R D W A R E

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Optics / Lenses Bought externally outsourced

Body / Sensor Constructed in-house

Battery / Memory Designed in-house

H A R D W A R E

“ Value Chain Evolution theory suggests companies ought to control (integrate) the dimensions within the value chain that drive performance which matter to customers.

— PROF CLAYTON M. CHRI STENSEN “ S e e ing W hat ’s N ext ” (2004)

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Optics / Lenses Bought externally outsourced

Body / Sensor Constructed in-house

Battery / Memory Designed in-house

H A R D W A R E

“ … and outsource everything else that cannot be value-added any further.

— PROF C L AYTON M. C HRI STEN S EN “ S e e ing W hat ’s N ex t ” (2004)

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Optics / Lenses Bought externally outsourced

Body / Sensor Constructed in-house

Battery / Memory Designed in-house

H A R D W A R E

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Interface App Developed in-house

S O F T W A R E

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Interface App Developed in-house

• Required to maintain crucial wireless link to cellphones

S O F T W A R E

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Interface App Developed in-house

• Required to maintain crucial wireless link to cellphones

S O F T W A R E

“ Directly controlling gives companies the ability to push the frontier of what is possible … [and] a full platform to run experiments to solve problems due to interdependency between activities.

— PROF CLAYTON M. CHRI STENSEN “ S e e ing W hat ’s N ext ” (2004)

Scope of Activities *

Activities undertaken by Sony WHAT IS PRODUCED INTERNALLY / WHAT IS OUTSOURCED? ?

Interface App Developed in-house

• Required to maintain crucial wireless link to cellphones

S O F T W A R E

Scope of Activities *

Optics / Lenses Bought externally outsourced

Body / Sensor Constructed in-house

Battery / Memory Designed in-house

Interface App Developed in-house

Scope of Activities *

Sony QX10 / QX100

A camera concept that creates new value, in terms of —

1 PORTABILITY,

2 IMAGE QUALITY,

3 CONNECTIVITY

Everything in a DSLR, less the screen,

and hence, less the price. “ ”

Sony QX10 / QX100

A camera concept that creates new value, in terms of —

1 PORTABILITY,

2 IMAGE QUALITY,

3 CONNECTIVITY

Value Capture

Customer Selection

Scope of Activities

Strategic Control

Value Proposition

new BUSINESS MODEL

? Ang Qing Zhong A0087688A Ong Xiangrong A0072333N

Teo Tze Jie A0072888L Voon Kakiong A0074717Y

Questions?