A major factor contributing to Sony's global dominance for so many years was the brand's leadership position in innovation, cutting edge designs (in that age), and its ability to anticipate hidden consumer needs and cater to them. This philosophy manifested in the form of Walkman, VCR, PlayStations to name a few. In retrospect, this sustained success may have come at a cost - a cost that is costing too much for the brand now.
There are many reasons for Sony's fall from the top. As other young competitors such as ...view middle of the document...
This diversification not only drains the brand's resources to a great extent but also diverts the brand focus from the core of the brand. Additionally, Sony had years of complacency and lack of focus has opened the market in many sectors to younger, much agile players such as Samsung, LG, Apple, Nokia and others that are attacking Sony on multiple fronts. This combined blow from other brands that have become market leaders in businesses that Sony was once a leader is turning out to be very lethal.
What should Sony do to regain its lost brand supremacy? It seems ironic that for a solution Sony may want to look at a brand that prides itself on structuring its brand plan based on Sony's - Samsung Electronics. Sony should first regain its lost focus and the best way to do this is to come out of businesses that do not contribute to the overall brand standing in the market place. Secondly Sony should revamp its departments that have a direct impact on creating strong customer perception for the brand - R&D, design, and marketing. In other words, Sony needs to elevate the marketing function to the boardroom and enable marketing to take a lead of the business and the strategy. It cannot be left to a functional department.