Friday, February 22, 2008

Assignment 3 - Blue Ray / HD

One element found in the story is Strategic Planning. Or lack of it. Toshiba Corp failed to look to the future of its HD DVD and failed to implement better technologies that would make it more marketable to consumers who prefer high quality pictures. For example some movie rental companies such as Block Buster Video will only stock Blu-ray DVD's. Marketing myopia is also found in the story. Toshiba's management failed to recognize the scope of its business. Management also failed to gear HD DVD to a more customer oriented product. This was the company's downfall.

A second element found in the story is utility. Consumers want to be satisfied by a good product. Blu-ray offers consumers what HD DVD does not; to be able to record, rewrite and playback on HD.

Another element to the story is the second mover strategy. The second mover strategy is a theory that advocates observing closely the innovating of first movers and then introduce new producs that improve the original offer. Sony Corp kept abreast of the changing market and the public's need for more storage capacity than traditional DVD's. Blue ray is also used in most leading consumer electornics. Sony of course will need to be careful or they too may face the possibility of being scooped (second mover strategy) by another competitor.

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