SONY

EV DIVERSIFICATION

Yash Gupta 118/2019

 MISSION
“To be a company that inspires and fulfills your
curiosity. Our unlimited passion for technology,
content, services, and relentless pursuit of
innovation drives us to deliver ground-breaking
new excitement and entertainment in ways that
only Sony can.”

VISION
“Our vision is to use our passion for technology,
content, and services to deliver kando, in ways
that only Sony can.”
 PROTOTYPE VEHICLE

Sony is working to thoroughly understand the mechanism of cars – to not only comprehend how they are
made and the challenges they present, but also their relevance to society. Towards this goal, Sony has
developed a car that is both drivable and gives full consideration to safety. The car represents a fusion of
Sony's technology and creativity. It is a glimpse into the future of mobility, encompassing the evolution of
safety, comfort, entertainment and adaptability. The VISION-S Prototype – riding in it feels extremely
secure. Just sitting in it evokes excitement. Being with it affords a timeless relationship. It is a car that will
evolve mobility into an enriching experience.
 Does the Prototype align
with Sony’s Mission?
• Improvement of life. Sony’s first characteristic in its mission statement
speaks to its ambition of rolling out designs with high customer satisfaction
features. Vision S is a new product development by Sony. This concept car is a
mixture of all the innovations and design that Sony plans to do where the
motion sensors were the key highlight.

• Exceeding expectations. In this second component, Sony demonstrates

its continued commitment to supporting innovative attitudes that drive the
creation of better products. The Vision S was something that no one expected
during the CES 2020 in Vegas. However, Sony exceeded the expectations of the
customers and brought a good value product that is competitive with the
industry leader “Tesla”.

• Delivering excitement and entertainment: It is true that Sony

leaves nothing to chance when it comes to delivering excitement and
entertainment in the Sony way. Through its new technological
advancement mechanism, the company has shown its desire to continue
being the best in what it does. Vision-S features 33 different sensors inside
and outside of the car, multiple widescreen displays, 360 audio, and always-on
connectivity, with some pieces coming from industry players like BlackBerry
and Bosch. It’s also powered by a “newly-designed EV platform” — which
appears to have been engineered by automotive supplier Magna — that Sony
says will be able to power other vehicle types, like SUVs.
 Does the Prototype align
with Sony’s Vision?

• Exploit our passion. The first component in Sony’s vision statement spells out the major strength that Sony must exploit
– its passion for technology, content, and services to run the operations of the firm. With this concept, Sony attempts to
enter a new segment of electric vehicles. With new technology and design, they try to exploit their passion.

• Delivering Kando. Within Sony, Kando represents the emotional connectivity of everyone involved in the company. It is
an aspect that this vision statement emphasizes as the bonding element critical for the operations and processes within
the firm.

• The Sony way. In this component, Sony highlights its uniqueness as a brand and what it does. In fact, this is reflected in
its passion, embracement of the spirit of kando, and most of all the quality that defines its products and services. Sony
could have just shoehorned bits of all this technology into a static concept vehicle. But the company figured the best way
to prove to automakers and other industry players that it was serious was to fully embrace the challenge of building a
working electric car
 Industrial Organizational (I/O) Model of Above average returns (AAR).

• Explains the external environment’s dominant influence on a firm's strategic actions and performance.
• Industry or segment of industry in which a company chooses to compete has a stronger influence on
performance than do the choices managers make inside their organization.
• The firm’s performance is believed to be determined primarily by a range of industry properties.
• The Five Forces Model of competition is an analytical tool used to help firms find the industry that is the most
attractive, as measured by its profitability potential.
• The firms can earn above-average returns:
1. Cost Leadership Strategy
2. Differentiation Strategy
• The I/O model suggests that above-average returns are earned when firms are able to effectively study the
external environment as the foundation for identifying an attractive industry and implementing the appropriate
strategy.
 Five Forces Model of Vision S
1 Threat of New Entrants - Low
• EV Industry has high entry barriers.
Threat of New • Large Capital Investments are required.
Entrants • European companies developing their own technology.

2 Bargaining Power of Buyers - Low

• Bargaining power of buyers is low as not many alternatives are
available for EV.
• Demand is very high.

3 Threat of Substitute Products - High

Bargaining Rivalry Among Bargaining • Numerous alternatives to buy a fully electric car.
Power of Existing Power of • Hybrids and Plug-in Hybrids
Suppliers Competitors Buyers • Low displacement turbo diesels with low emissions and
consumption.
4 Bargaining Power of Suppliers - Moderate
• Sony procured all the engines and other materials from different
manufactures.
• If they plan to enter, they have to tie up with Magna Steyr and other
manufacturers.
• They only have in-house sensor and entertainment manufacturing.
Threat of
Substitute 5 Rivalry Among Existing Competitors - Moderate
Products
• High entry barrier results in low competition.
• Sony plans to enter in the entry level segment where there is less
competition.
• Tesla can be a major competitor as it has cars in all segments.
 Resource Based Model of Above Average
Returns (AAR)

• The resource-based model assumes that each organization is a

collection of unique resources and capabilities.

• The uniqueness of its resources and capabilities is the basis of a

firm’s strategy and its ability to earn above-average returns.

• The core assumption of the resource-based model is that the

firm’s unique resources, capabilities, and core competencies
have more influence on selecting and using strategies than does
the firm’s external environment.
 Value Rare

Sony enjoys patents, intellectual rights, a

Entering in to the EV segment will add to the collaboration with several brands such as
customer perceived value and will revive the Blackberry, Bosch and the latest in the
consumer appeal. Features category.

VRIO
IMITATION Organisational Advantage

It is difficult to duplicate in the short run Sony was still committed to creativity and a
because Sony had a previous background in leader in its category, such as Walkman
EV components and trains manufacturing and PlayStation. Sony diversifies the portfolio by
accessing technologies and IA entering this foray

01 Initial Plan
To supply Sony’s CMOS image
sensor and other audio-visual
technologies to automakers
Sony’s Strategic Rationale
02 Strategic Action
Sony is meant to showcase the
Japanese tech conglomerate’s
many different strengths, from
entertainment products to camera
sensors and more
03 Envisioning Future 04 External Factors
Analyzing the increase in Considering all the external
demand and envisioning factors and core competencies.
the future, entering EV It is a smart and productive
market will prove to be a vertical Sony has entered
fruitful decision.
Thankyou!