Business strategy case analysis Study Example | Topics and Well Written Essays - 1000 words

Business strategy analysis - Case Study ExampleA BETA data formatting video droper was manufactured and produced by many companies like Sanyo, Toshiba etc. scarce this engineering science was going to meet a violent end. It was a hit in its introducing year since Sony went beforehand to produce a Beta format home video system and Sanyo was producing the top selling genus Beta format video recorder. Beta grabbed one-third of the UK mart in 1975.Sony was in an agreement with JVC and the two companies had sign a deal formerly, to produce U-Mat technology and this deal was issuen as the U-Matic deal. Sony had taken one harm step during this deal since they were too arrogant and aggressive enough to take most of the credit for the technology in the market. Thus, JVC had a grudge once morest Sony for this unfair treatment. When Sony produced Betamax they were still in a deal with JVC and once again Sony made the mistake of not accepting JVCs advice on replacing Betamax with JVCs new find which was better in all aspects, Video Home System (VHS) technology. Sony was once again to arrogant to accept the advice from JVC and they paid a worth for it.JVC launched VHS in 1976 and this format s strugglemed the market. By 1980, VHS had a 70% market share in northwesterly America. By 1984, all strategic companies started to produce VHS format video recorders. Everyone adopted this new and better technology. hardly there are specific reasons to why Betamax failed due to Sonys bad strategy management. (SJ. Liebowitz, Stephen E. Margolis 1996)Sonys strategy had injurys and the major flaw was that they had not conducted a proper market research about what the customer really wants. Sony had a harm perception about what the customers really wanted. They believed the customers would go for the high case of recording and not the length of the recording. VHS could record up to 4hrs of video whereas Beta could record up to 3hrs and 35minutes. Customers wanted greater lengt h and not quality of the video. So, VHS sold more and became a HIT Beta was a high quality video format so the costs involved were high compared to VHS therefore, the retail price for Beta was higher than that of VHS. This market is price sensitive and Sony took another wrong decision. Sony should have taken informed decisions in the market to avoid the confusion and the failure of their baby increase that died in its infant stages. Sony could have both gracefully let go of Beta and taken JVCs advice to adopt VHS technology. But the company should have had conducted a market research to know the consumer demands. This would have saved them from making uninformed decisions that were a fatal risk and ended in a failure. Otherwise Sony could have marketed Beta with a different approach by targeting the right market. They could have targeted their product to a niche market that preferred quality over quantity. This way VHS and Beta would be competing in two different markets since VHS was mass marketed. BLU-RAY and HD-DVDBLU-RAY and HD-DVD (High Definition) are the latest buzz in the video format market but history is repeating itself since once again the two formats are in a war to gain the highest market share. BLU-RAY is considered to be more superior to HD-DVD because RAY can record two hours of digital HD (high definition) video and thirteen hours of SD video. HD-DVD has 40% less storage capacity comparatively. Sonys BLU-RAY or Toshibas HD-DVD need