Docstoc

VCR-Battle

Document Sample
VCR-Battle Powered By Docstoc
					                       The VCR Battle
Strategic Maneuvering and Mass-Market Dynamics: The Triumph
                       of VHS over Beta
    Case by written by Michael A. Cusumano, Yiorgos Mylonadis and Richard S. Rosenbloom




Management of Innovation and Technology WS02/03    Dennis Damer, Svenja Lassen and Stefan Broda
         Table of Contents
VCR History
Development of VCR market
”Sony is not an OEM manufacturer”
“The best standard we‟re all working on”
VCR Technology Adoption Lifecycle
Why Sony lost
                VCR history

1956:     invention of the Ampex VCR
1960„s:   stagnation on the VCR market
1970:     cross-licensing agreement for video
          recording patents (Sony, Matsushita, JVC)
1971:     Sony: Leadership of U-Matic invention
1975:     introduction of Sony`s Betamax format:
1976:     JVC introduced the Video Home System
          (VHS) format
 Development of VCR market




                                                                                                   30% Penetration in USA
                                                                         Pre-recorded tapes soar
                                                VHS adoption in Europe
       Decisive period:
                          VHS: Europe and US
          1975: 1976 JVC – 78
                          Formation of groups
                       1975
                          1977                    1984:
       1974 - 1977             1978:
                       • VHS • Major
          • Sony•introduced Group: European Brands
                  Introduction ofenters
                          • VHS VHS               • Zenith drops
  * Betamax *




          Betamax Matsushita, JVC, Hitachi,       Beta format
                * VHS *




                          European Market
                               adopt VHS standard
                       Sharp, Mitsubishi, Sanyo
                          • RCA adopts VHS        • End of Beta
                          format
                       • Beta Group:
                       Sony, Sanyo, Toshiba




Decisive Period
BETAMAX
”Sony is not an OEM manufacturer”
 Reluctant to share technology
  No OEM shipments
      Brand image consideration

 Started production before
 asking others
 Differentiation strategy
 Developed new features
 Unable to satisfy market



                                   Sony, Sanyo, Toshiba
       JVC: “The best standard we‟re all
                 working on”                                   VHS
                                                   Polite and humble
                                                   Integrated partners in
                                                   development
                                                   Alliance building
                                                   Mass production
                                                      Supplied OEMs

                                                   Imitating Sony„s features
                                                   Initial advantage:
                                                      Longer playing time
JVC, Matsushita, Hitachi, Sharp, RCA, Mitsubishi
Some facts of the development
Special Effects Comparison                       Recording-Playing Time
                           Beta      VHS         Year    Beta         VHS
Wireless Remote            1977/3    1977/6      1975/5 1 hr.
½ Speed                    1977/3    1977/6      1976/10              2 hr.
Slow/Still                 1979/3    1977/12     1977/3  2 hr.
Portable VCR               1978/9    1978/2      1977/10              4 hr.
1/3 Speed                  1979/3    1979/8      1978/10 3 hr.
Scan/Slow/Still            1979/3    1979/8      1979/3  4,5 hr.
Stereo recording           1980/7    1979/8      1979/8               6 hr.
Hi-fi                      1983/4    1983/5      1982/3  8 hr.
One-unit camera-recorder   1983/7    1984/3



VCR Market share by Country and Format (1983)
         USA      Japan    Britain   W. Ger.   France   Italy      Above Totals
VHS      75       70       74        60        70       60         72
Beta     25       30       24        20        20       20         25
V-2000   0        0        2         20        10       20         3
                 Why Sony lost
Neglected Early Majority (Mass Market)
   Not able to satisfy demand:
     Production capacity
     Recording/Playing length of tapes

No compromises regarding technical standard
 Human factor of business (arrogance)
Refused to license Betamax to adult movie industry
 Network externalities
Thank you very much
  for your attention!

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:19
posted:6/25/2011
language:English
pages:9