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Volvo Corporation: Gps navigation Systems

 Sony Organization: Car Navigation Systems Essay

Executive Summary

Sony was the first business in the 1990's to release the car navigation system. Sony was your market innovator with a 60 per cent market share in 1993. Sony had as well led a team of 40 corporations in an industry standard named Naviken which usually enabled consumers to benefit from mutually compatible digital map software while manufacturers decreased their risk by posting development costs. However , opponents not in the NaviKen group were able to bring in new and improved items more often and even more rapidly by simply developing or acquiring exclusive digital map technologies. Fiat could not maintain this expansion and the market share dropped to 15% in 1996. In Europe and the US, Sony was also the first one that launched the navigation system, but regional manufacturers in Europe started to launch rivalling products strongly. Other Japan competitors were expected to enter the Europe plus the US marketplace by 1997.

The problem description is the pursuing:

How can Sony boost revenue and recapture lost market share in the remarkably competitive Japan market and at the same time expand to Europe and the US to be able to stay in front of the growing competition and the scientific development?

The concept of the car gps had been about in Asia since the early on 1980's, Honda claimed as the first firm to put a navigations program on the road. The Japanese market intended for car navigation devices was the globe largest in 1995 with sales of 580, 000 units and $840 , 000, 000. Sony's opponents in The japanese were Pioneer, Mitsubishi, Matsushita and Alpine.

The European market stood behind the Japanese market pertaining to five years. The market began to develop when major companies like Bosch and Philips released products in Germany and France, which in turn became Sony's competitors in Europe.

In the usa, car navigation devices were not regarded by every person. The US industry was behind both Europe and The japanese. The value of gps navigation systems had not been that obvious for US motorists due to the well- organized program with visitors signs, street names and highly created highway.

The strategic options for Volvo can be split up into three parts: the physical focus concern, the product options and the option whether to keep with NaviKen or not really.

We have selected the option to build up a low-priced model for the three markets. For The european union and the ALL OF US, it will be a good way to present the car gps of Fiat. In Asia it will be ways to gain the mass marketplace. Although the marketplace is in its maturity phase, you may still find enough potential clients for Fiat. They are either sensitive intended for the price or they do not learn how to use it effectively. For them we will present an easy to understand, low-priced unit.

We as well recommend Volvo to improve consistently and faster in Japan, since the competition is usually far in advance. This demands managerial tenacity and financial commitment for the development of the product and for the marketing as well.

The circulation of this car accessory could be the after industry retail stations.

We suggest that Sony should certainly stay with NaviKen. But NaviKen must develop and innovate much faster than it at the moment does. Simply in that case will it be fortunate to stay with NaviKen.

Table of contentsPage

Business summary2

Introduction4

Chapter one particular Sony Corporation5

Chapter a couple of Japan7

installment payments on your 1 Japan market7

2 . 2 Competition in Japan8

Chapter three or more Europe10

3. 1 The European market10

3. two Competition in Europe11

Section 4 U. S. A. 12

4. 1The ALL OF US market12

5. 2US competition13

Chapter 5 Analysis: three or more V's and Value Contour 15

a few. 1 The 3 V's15

your five. 2 Value curve15

Section 6 Ideal options17

6th. 1 Geographic focus issue17

6. two Product options17

6. 3 Naviken: continue or not? 18

Section 7 Recommendations19

7. you Product19

six. 2 Distribution19

7. several Price19

several. 4 Naviken 19

7. 5 The new Sony car Navigation System shown by simply PLC21

Industry & Business development cover Japan22...

References: Sony Firm: Car Navigation Devices, HBS 9-597-032

Marketing Strategy, fourth edition by Walker, Boyd, Mullins and Larreche ( International Edition)

First to advertise, first to get corrupted? Real reasons for enduring marketplace leadership, M. Tellis, N. Golder

http://www.thecarconnection.com/Auto_News/Auto_News/Navigation_Systems_Could_Triple.S175.A10453.html

http://www.fhwa.dot.gov/ohim/1996/mv9.pdf#search=%22TRUCK%20AND%20TRUCK-TRACTOR%20REGISTRATIONS%20-%201996%22

http://www.fhwa.dot.gov/ohim/hs97/mv9.pdf#search=%22TRUCK%20AND%20TRUCK-TRACTOR%20REGISTRATIONS%20-%201997%22

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