Sony Case 3

Question 1

Symbiotic Interdependencies

Hollywood, as a supplier to both Sony and JVC, maintained a symbiotic interdependency with both organisations during the Video Format War. However, JVC was much more apt at leveraging this interdependency. JVC’s deal with Hollywood enabled them to acquire a greater variety of content for the VHS that sated increasing consumer demands . Sony failed to anticipate this same opportunity. Additionally, Sony had a symbiotic interdependency with the motion picture industry, as these actors could likely be better or worse off at the same time . The industry’s legal resistance concerning copyright infringement, along with lackluster marketing efforts, prevented Betamax from developing a good reputation (Jones, 2007) with distributors and consumers. Though Sony was the first mover, JVC’s choice to play a defensive rather than offensive strategy allowed them to take time to realize the value of symbiotic interdependencies where Sony could not.

Competitive Interdependencies

Competitive interdependencies existed between Sony and JVC during the Video Format War, where both organisations vied to become the market leader among consumers. Since Sony only really focused on the quality of their VCR’s technology, they failed to recognise that other features, such as diverse content offerings, were also important to consumers . In addition, Sony and Phillips did not take advantage of the chance to form a strategic alliance with one another. A strategic alliance would have afforded them the opportunity to pool their risks, which would make it easier for them to compete against JVC’s VHS . Success of the strategic alliance between Sony and Philips in developing the Compact Disc further demonstrates how practical and beneficial such an alliance would have been to Betamax as well.

Question 2

Symbiotic Interdependencies

Symbiotic interdependency existed between Sony and Phillips most prominently when they formed a strategic alliance in the 1980’s . Imperatively, for an alliance to succeed in a competitive environment that Sony and Phillips operated in, each party should bring complementary and balancing strength to the innovation process . With insights for a need of new sound carrier, Sony was able to work collaboratively with Phillips to seize the opportunities of laserdisc through the facilitation by their ‘Red Book’ taskforce. The two companies were mutually beneficial from the introduction of the laser compact disc to the market in terms of their revenue growth as well as increase in their brand awareness. In addition, Sony, with comparatively more aggressive marketing efforts, succeeded in gaining tremendous market share for the company .