In Japan, there are many types of companies experiencing business disruption or changes in the way of doing business. They often arise from new technology. Changes in customer behavior or other factors that cause existing businesses to adapt or create new innovations in order to survive existing businesses, which have a significant impact on the business
Sony is a leader in the gaming console industry. And world-class entertainment media players because many products are famous and known to people all over the world, for example PlayStation game consoles and Sony Walkman portable music players that have changed the music listening behavior of humanity all over the world. Including electrical appliances, audio systems, headphones and digital cameras, it can be said that Sony has been at the top for a long time. But big companies like Sony also made gains
The effects caused by business disruption are as follows:
From the digital camera business specifically, from 2010 to 2019, Sony’s digital camera sales declined from 17.5 million units to 6.1 million units due to changing customer behavior due to the popularity of using digital cameras. Switch to using the easier and more convenient smartphone camera.
Image credit: Statista
Global digital camera sales have declined by 87% since 2010.
Statistics from the Camera and Imaging Products Dealers Association (CIPA) whose members include Olympus, Casio, Canon, Kodak, Sony, Nikon and others.
There is also Tencent, a Chinese IT company that owns many online games such as ROV and PUBG, which has changed people’s gaming behavior from playing console games to playing more online games. To date, the company has grown to become the number one online game production company in the world, with revenues surpassing Sony’s game production business.
What Sony did to overcome business disruption
1. Since digital camera sales were declining, try to develop by producing new products that respond to current lifestyles, such as the Sony ZV-E10 or a vlogging camera with interchangeable lenses. It’s built-in. Suitable for ordinary people who want to create their own media (Creator). The camera has superior features over smartphone cameras. This camera is an important part that makes Sony successfully win the first place in mirrorless camera sales from the statistics of the first half of 2023 in Japan.
2. Investing in startups and new technology For example, Cogitai, a startup working in the field of artificial intelligence. Bringing in experts from around the world to assist including opening a new business unit, the Sony Startup Acceleration Program (SSAP), which aims to use Sony’s business knowledge and capabilities accumulated over a long period of time. To be mentors to new entrepreneurs who have dreams of pushing their ideas towards success. Since its inception in 2014, this project has managed to push many new products to the market.
3. Develop an intelligent online streaming platform, PlayStation Network, which integrates broadcast systems for games, TV shows and other entertainment content to support users’ online entertainment needs. It is arguably the leading producer of game consoles in the past that has managed to expand its products up to the present.
These are some examples of Sony dealing with business disruption situations that occur in an era of rapid technological change. As a result, big players like Sony will have to adapt. To maintain an advantage in the industry in which we operate
Guidelines for surviving in an era where business disruption is constant.
I believe that this era is the era that witnesses the fastest changes in the business environment. There is an opportunity to increase speed as well, so as a business owner and entrepreneurs you should have guidelines to deal with business disruptions that may happen to your company at any time. I would like permission to recommend the following method.
1. Outsourcing: Hiring experts to help develop technology for the company. To add new perspectives to deal with business disruptions that may happen to us at any time. The reason behind hiring outside experts is that most companies rely on past successes. Don’t you dare change anything that seems risky. Which causes lost opportunities to develop new things for the company
We hope this article helps readers understand the business disruption that is most impacting our business. Along with ways to prepare to deal with such situations from the beginning, which will not only help entrepreneurs adapt, but will also help create new opportunities for their businesses.
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