Analyzing Sony and Biti's Case Study
Analyzing Sony and Biti's Case Study
- The company: Due to the rigid engineering culture of the company, the
performance of the company is not up to the mark. It failed to adapt to important
changes occurring all around it. Some internal conflicts in several divisions created
many problems. => Some departments in the company such as product
development, and technology, strategic planning.. did not give appropriate
development direction
- Competitors: When new companies began to emerge Sony did not adapt, but
companies such as Apple, Google, Amazon, and Samsung did. Instead, Sony
stayed the route that they had taken and unfortunately, this hurt the company more
than expected. Catching up with market trends, Sony's competitors quickly
surpassed it both in terms of revenue and sales.
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Sony | History, Products, & Facts | Britannica
- Customer: The rapid development of technology changed the preferences of
customers. They tended to use cutting-edge devices such as Apple products. It
resulted in Sony’s declining popularity among consumers.
- Economic forces: the global financial collapse and the yen trading near a post-war
high hindered Sony’s “reborn”. The international economic recession and financial
crises have hit the performance of the company hard, which set Sony back more
than one billion dollars.
- Social forces: Users tend to adopt more modern technologies, use smartphones and
watch online content, which changed the way consumers interact with electronics
and entertainment.
- Natural forces: Some extreme natural disasters such as earthquakes, tsunamis, and
fires caused heavy damage to Sony. Disasters made this company have to shutter
many plants and disrupted the production and distribution of Sony products.
- Lack of brand evolution: Sony is now a strong example of a brand that survives
on “residual brand equity” rather than actively managing and building it. Sony only
relied on its past laurels and expecting consumers to have continued preference for
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https://martinroll.com/resources/articles/strategy/sony-battle-stay-relevant/
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Sony Corporation's Mismanagement as Decline Factor - 2836 Words | Case Study Example
(ivypanda.com)
the brand in the absence of any differentiated proposition has been Sony’s undoing
in recent years.
- Fierce competition in the market: Sony is competing with brands that have been
around for many years such as Apple, Samsung, Google, and Amazon, not to
mention Sony now has low-cost competitors such as Haier, Hisense, and TCL.
Because of this Sony is falling by the wayside when it comes to products.
Companies such as Apple and Google have the flashy name and products that
people rely on every day.
- Focus on its strength: Sony operates in too many lines of businesses, namely,
semiconductors, mobile devices, cable television, stereos, movies, and financial
services among others. One of the disadvantages of over-diversification is the issue
of fighting competition on many different fronts. This situation means that colossal
resources are deployed to manage the overwhelming competition. Thus, it is
important for Sony to minimize the field it operates to focus only on a few
divisions, thus promoting innovativeness and efficiency.
- Understand customer needs: Sony should strive to produce items that are
desirable to customers, including televisions, smartphones, and cameras among
other devices. Sony should build and improve the features that customers are
interested in using. For instance, Sony’s smartphone has too many buttons and dials
that make it unappealing to the user. Instead, the company may incorporate a larger
touch screen with soft buttons. When Sony products meet the needs of customers,
they will still buy the product despite the high price.
- Competitors: When new technology began to emerge, Sony failed to adapt, while
Apple, Google, Amazon, and Samsung succeeded in embracing the changes.
Unable to keep up with market trends, Sony lost market share to competitors
- Customer: Shifting consumer preferences moved towards rival products like those
from Apple and Samsung, leading to an impact on Sony's market share
b. Macroenvironment (PESTEL)
- Economic:
+ Global Economic Conditions: The Great Recession and subsequent economic
challenges affected consumer spending on electronics, impacting Sony's sales and
profitability.
+ Exchange Rates: Fluctuations in currency exchange rates, like the strong yen, can
influence Sony's costs and pricing in international markets.
- Social:
+ Technology Adoption: Rapid adoption of digital technologies, smartphones, and
online content consumption altered how consumers engage with electronics and
entertainment.
- Technological:
+ The shift from standalone hardware to interconnected devices and digital content
consumption changed the landscape of the consumer electronics industry, which
Sony was slow to adapt to.
+ Innovations: Sony missed opportunities to capitalize on innovations like MP3
players, smartphones, and e-readers, despite having the technology to do so.
Sony was caught in the middle of a perfect storm of environmental forces that
inhibited its growth and success. Facing the effects of microenvironments and
macroenvironments, Sony had 2 kinds of responses: uncontrollable and reactive
=> With the fast technological advancement, while competitors are constantly
integrating new technologies into their products, Sony was late to adapt. Facing
great competition from competitors, Sony behaved as though its market leadership
could never be challenged. Sony took its eye off the market and did not try to
change itself.
+ As Sony awoke to the reality of flattening revenues and plummeting profits, CEO
Stringer developed a turnaround plan aimed at changing the Sony mindset and
moving the company into the new connected and mobile digital age and then Sony’s
profits jumped 200 percent to $3.3 billion on rising revenue
=> Only after the crisis took place, Sony passively accepted the shift of technology in
the market and tried to adapt to this trend.
=> A series of disasters struck and all Sony can do was watch and react to the
environment by shuttering many plants and disrupting the production and
distribution of products.
d. Sony’s SWOT
- Strengths:
● Historical Innovation: Sony has a history of creating innovative products that
revolutionized industries, giving it a strong foundation of creativity and
engineering expertise.
● Diverse Business Portfolio: Sony has a range of products and services across
electronics, gaming, entertainment, and more, providing a diverse revenue
stream.
● Strong Brand Legacy: Sony was once revered as a symbol of innovation, style,
and high quality, contributing to a strong brand identity.
● Global Reach: Despite its challenges, Sony still has extensive global reach and
a presence in various markets.
- Weaknesses:
● Failure to Adapt: Sony struggled to adapt to changes in technology and
consumer preferences, leading to missed opportunities.
● Lagging in Technology: Sony fell behind in adopting new technologies, leading
to loss of market share to competitors like Apple, Samsung, and others.
● Resistance to Change: The company's culture and mindset often prioritized
hardware over content and services, limiting its ability to embrace new trends.
- Opportunities:
● Convergence of Services: Sony has the potential to integrate its various
businesses (gaming, entertainment, electronics) to offer comprehensive
entertainment solutions to consumers.
● Digital Distribution: Sony can leverage its entertainment content (movies,
music, games) by capitalizing on digital distribution platforms similar to
iTunes.
● Technological development: The Internet and digital technologies are on the
rise, creating a more mobile and connected world
- Threats:
● Competition: Strong competitors like Apple, Samsung, and other tech giants
have overtaken Sony in various markets and continue to innovate.
● Technological Shifts: Rapid technological advancements can continue to
disrupt industries and leave Sony further behind if it fails to adapt.
● External Events: Natural disasters, economic downturns, and hacking attacks
have shown the vulnerability of Sony's operations to external events.
- Grasp the opportunity: In this case study, there are plenty of other examples of
Sony’s failure to capitalize on market trends despite having the products to do so.
Sony continued to develop out-of-date products and failed. That’s why, brands
should recognize and seize chances to come up with the right direction.
- Constantly change and develop products: Sony was late to adapt to the
technology trend, which result in a loss in Sony’s market share. In fact, consumer
needs and wants are always changing, and businesses that don’t keep up will
eventually fall behind.
- Do market research before launching new products: Sony failed to sell new
products because of taking its eye off the market. So a company should initiate
effective research about customer preferences, competitor strategies, market trends,
and external factors. Market research helps businesses adapt to important changes in
the market and develop effective marketing strategies.
- Prepare plans and solutions to avoid negative effects of internal and external
factors: Facing the impact of marketing environments, the responses of Sony were
extremely passive, which caused great damage to Sony. The company should
analyze the market, then come up with long-term plans and solutions to be able to
promptly respond when problems arise.
1. Biti’s introduction
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- Vietnamese footwear brand Biti’s was founded in 1982 by Vuu Khai Thanh and
Lai Khiem.
- Biti’s dominated the domestic market with their high-durability sandals in the
late ‘80s and ‘90s.
- In 2016, Biti’s made a turning point in the Vietnamese footwear market by
launching a completely new product, Biti’s Hunter after a period of absence in
the market.
- A distribution system of Biti's products stretching from South to North with 07
Branch Centers, 156 Marketing Stores, and more than 1,500 retail distribution
intermediaries.
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Về Biti's (bitis.com.vn)
- In China, Biti's has set up 04 representative offices with 30 total sales and more
than 300 sales points to gradually bring Biti's products to dominate this
potential cross-border market. With the potential Cambodian market, Biti's has
an official distributor Cambo Trading Company to distribute Biti's products
throughout Cambodia. Biti's has exported to 40 countries around the world
such as Italy, France, the UK, the USA, Russia, Japan, South America, Mexico,
Cambodia, etc.
- Faced with that situation, Biti's was too passive in product innovation.
Slowness in thinking and coming up with a proper business strategy was the
reason that killed Biti's
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https://www.brandsvietnam.com/11374-Tu-ngac-ngoai-Biti-s-bong-vuon-minh-troi-day
- In addition, taking advantage of the power of communication, Biti's actively
promoted its products on social networking sites - one of the indispensable
parts of young people's lives. Their advertising campaign went viral on social
media, resulting in a 300% increase in sales.
- In the following years, Biti's profit continued to grow
Stage 1: SONY was the world’s Biti's sandals accounted Both companies had
Golden Age largest consumer electronics for 70% of the footwear leading positions in
company market in Vietnam. the market
- With the fast technological - Biti's was too passive in - Facing the problem,
advancement, Sony was late product innovation Sony and Biti’s
to adopt - Did not come up with passively made
- Sony took its eye off the new business strategies innovation
market and did not try to fastly - 2 brands lost their
change itself. - Biti's was "out of date" leading position in
- Sony fell so hard so fast and gradually forgotten the market
=> Conclusion: Due to the difference in category, the micro and macro
environmental factors affecting Sony and Biti's are not exactly the same. However,
both brands react in the same way so the results at each stage are totally similar
At the end of 2015, the information that Biti's strongly spent 5 million USD to invest
in technology to produce quality sports shoes "made in Vietnam" was not confirmed.
In 2016, the information was confirmed when the product lines of Biti's Hunter were
born when the brand turned 34 years old. Very quickly, this product brand created a
fever with beautiful design, cheap price. than other products in the same segment
(only about half that of foreign products).
Gradually revealed from April 2016, Biti's Hunter started with campaigns such as:
collaborating with billion-dollar startups in #uberMOVE, marketing program
"Internship Dream" - Young Marketers 5, becoming the subject of a marketing contest
especially creating fierce debates on social networks during the event. Tet, should you
go on a trip or go home?
At the end of 2016, there was a series of controversies regarding whether to return to
family during Tet, or to go to experience more of life out there. This is always an
unending controversy every Tet holiday, when Eastern culture emphasizes affection
and family cohesion, and young people want to be themselves. Specifically, the online
community actively participated in heated debates when KOLs supported two
opposing views as follows:
#teamdi: Family sentiment should be built throughout the year, not just on New Year's
Day. Finding experiences to increase living capital, knowing how to love and
appreciate what you have is completely worth supporting, and "Returning is in the
heart, the footsteps are not fault"
#teamtrove: It's not wrong to go but it's worth going at the right time and Tet is the
time when we need to spend time with our parents and family!
At the height of the controversy, Biti's and Soobin Hoang Son released a video clip
with the message "Di de tro ve", a profound message and convey a very different
definition of "di". Right after that, the explosion of information about Biti's Hunter
was pushed to the climax on New Year's Eve 2017 when Biti's Hunter shoes appeared
briefly in the MV “Lac Troi” by Son Tung - the male singer who always creates a
trend with any music product just released. Biti's shoes of two singers that are causing
fever among young people quickly sold out in both stores and online sales channels of
Biti's, Lazada or Tiki. According to data from Google Trend, 2 hit MVs have pushed
Biti's search to the highest level in the past 5 years.
This strategy has similarities with Nike's Marketing strategy: Michael Jordan -
Basketball Legend. As the 1980s running shoe market slumped, Nike aimed for a
grander goal. They risked their billion-dollar brand to align with a global icon,
Michael Jordan. Initially not famous and facing racial discrimination, Jordan was
hesitant to endorse Nike. After persistent persuasion and a significant contract, Nike's
investment paid off as Jordan's career soared. Nike's revenues reached $900 million,
then surged to $9.19 billion with Jordan's 5th championship. Nike's share of the
basketball shoe market skyrocketed from 0% to 95%, once controlled by Converse,
later acquired by Nike in 2003.
2. Interest
3. Desire
One of the typical ways used by Biti’s to stimulate the desire and consumption needs
of customers is to use the press to communicate.
The first are just PR articles tacitly hitting on patriotism "Vietnamese people use
Vietnamese goods", then there are PR articles directly aimed at products. Bitis has
succeeded in changing the traditional mindset of Vietnamese people towards locally
made products.
4. Action
Bitis has partnered with various e-commerce websites to launch promotional programs
aimed at stimulating customer purchasing behavior. This approach enhances sales
figures by encouraging customers through discounts and special offers, thus creating a
surge in shopping activity within a short timeframe. Furthermore, it boosts demand by
making products more appealing from a value standpoint, generating a desire to own
them.
=> According to Professor Jonah Berger, author of the book The Viral Effect, there are
six factors for an idea or product to get word-of-mouth. It has elements that are easy to
recall, create emotions, have useful value, have a story to tell, a high frequency of
appearances and social recognition... Biti's Hunter is lucky and good enough to have.
get these factors.
5. Recommendations
● Product:
- After 2020, industry experts no longer appreciate the quality of Biti's new products,
although they are quite eye-catching and have a trendy style => Bitis is abusing and
relying on marketing tools, lacking concentration on the core value of the product
- Therefore, Biti's should focus on developing its products before implementing
marketing campaigns. Customer needs are always changing and becoming more and
more demanding. Constantly improving product quality as well as trendy new models
will help Biti's retain existing customers and reach more new audiences.
● Promotion:
- The explosion of "Đi để trở về" has left an enormous shadow for Biti's to overcome.
Biti's subsequent campaigns did not resonate and leave an impression on users. There
are even big controversial campaigns like Flower in the Stone – Biti's Hunter Street X
Vietmax => Biti's recent campaigns are too safe, and there is no breakthrough
- In parallel with product development, Biti's should research and prepare for a strong
media campaign combined with progressive Vietnamese values to have a more
resounding comeback.