Sony Tablet

Product Analysis

Product features:
Unique ergonomic design. Processor NVIDIA Tegra 2 Platform/OS - Android 3.1 honeycomb Price - $599 Incredible aesthetics. Wi-Fi, Bluetooth, GPRS, USB port, front and rear camera. Playstation compatible. Access to Sonys giant repository of media.

Compatibility with promoter:

Already present in the field of Electronics.
Has the technological base to support the market.

With heavy losses in their TV business, it was inevitable for Sony to come up with a product to enhance their brand value.
Already has a strong network of distributors and retail stores. Easy for Sony to reach out to the Indian market as it already has a strong presence in India.

Consistency with Government Priority:

Low import tariffs.

100 % FDI allowed.

Availability of the inputs:

Major Production unit in China, Japan. More than 60% of its production comes from Asia.

Easy availability of the inputs for Sony.

Adequacy of market:
Tablet PC segment in India are expected to touch 1 million units over the next 12 month. Growing demand in world market :
Year 2010 2011 2014 Sales 30.27 million 54.8 million (estimated) 208 million (estimated)

Great opportunity for Sony in market with its presence in smartphones and notebook market already.

Reasonability of cost:
Brand iPad Samsung Galaxy SONY S tablet Reliance 3G tab Variant features 16GB 16 GB (32 GB expandable) 16 GB(32 GB expandable) 4 GB (32 GB expandable) Price ( in INR) 36,900 36,200 35000 to 37000 ( estimated) 12,900

Olivepad

512 MB ( 32GB expandable)

14,490

Acceptability and risk

Reasons for acceptability:
With Android it offers more user-friendly platform to Indian market. Provides some extra features like DLNA connectivity, USB ports, Micro SD slots etc. Strong supply chain and retail market in India. Top rated customer satisfaction in India till date. Huge customer base and brand loyalty of Customers in India.

Risk factors:
Delicate body built up. Less features in comparison with iPad( processor and hardware issues etc.) Apples benchmark product in this segment is a cause of fear of it. With equally strong retail network of Samsung and almost same features, Sony has challenges for increasing market share.

Market growth potential

Increase in number of potential customers in India:

Present Market Share Total market size85000 units
8.2 5.9 2.4 Samsung Olive pad Apple iPad Others

Market size
7000 6000 5000 4000 3000 2000 1000 0 Thousands

2011 2012 2013 2014 2015

84.7

Increase in Customer acceptance:

Good reviews for coming up with unique features and design.
Counter to apples ecosystem of applications and content with Sony Entertainment Network services. Promised catalogue of eBooks and periodicals to roll out. Inferior quality of glass and plastic used.

Product newness and design protection:

Design factor. Can be used as a universal remote control. Compatible with other Sony products. Capable of playing Playstation games. Offers 4G apart from 3G and Wi-Fi. Offers more original aesthetics.

Costs
By bill of materials method the cost of manufacture of a unit of a tablet is estimated to be $290. Major cost is cost of the touchscreen valued at $100 and the processor valued at $15. Production costs are expected to come down due to collaboration in producing screens with Toshiba and Hitachi.

Service Warranty:
Sony has kept a service warranty period of 1 year for the tablet.
Cost incurred by Company for servicing is 20 $ per unit.

Project Rating Index:

Factors Product Quality Unique Positioning Order of Entry Price Market Share of Firm Market Size Market Growth Rate Weightage 0.20 0.15 0.10 0.15 0.07 0.15 0.1 Rating(0-10) 8 5 4 6 4 6 7 Factor Score 1.60 0.75 0.40 0.90 0.28 0.90 0.70

Level of Competitiveness
Final Score

0.08

0.32
5.85

 Thank You