In an attempt to make a smaller amount of loss, Sony is considering reconstruct it’s business strategy. In the past few years, Sony keeps trying to become the world’s third largest smartphone maker in the market. But it ended up making huge losses. So what’s wrong with Sony’s phones?
The smartphone market is now dominated by Samsung and Apple. Apple builds up a unique brand image which helps it gain a lot of loyal customers. And when people have the brand loyalty, it would be difficult to change their preference and taste.
Also, Sony is somehow too eager to gain more market share. It launches dozens of phone models each year with very similar functions, whereas Apple only launches 2 models each year, but they are highly differentiated.
Therefore, Sony is now reconsidering its business strategy and changing its main focus to image sensor and game consoles. Now Sony’s Play Station 4 trounced Xbox One of Microsoft Corp. It is a great opportunity for Sony, as game market is highly profitable, it would generate huge amount of profit for the company. If Sony can grab this chance and dominate in this market, it will help Sony with its brand image. But at the same time, it requires Sony to spend huge amount of money on developing new games.