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Sony - Case Study Example

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Following the current technological advancement, e-business and mobile e-commerce strategies form part and parcel of any successful business organization. The success is reached through a two stage process, i.e. creating and capturing value. According to Tawfik and Enders,…
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Following the current technological advancement, e-business and mobile e-commerce strategies form part and parcel of any successful business organization. The success is reached through a two stage process, i.e. creating and capturing value. According to Tawfik and Enders, value and creation and capturing can be met through the value process framework (VPF) which incorporates different strategy analysis. Sony BMG is used a real life example of a company that has incorporated VPF in its operations.
Sony launched its mobile value network operator (MVNO) project in efforts to improve its competitive advantage. A critical analysis of this project discloses various value drivers as well as cost drivers. Tawfik and Enders define value created as the difference between alleged use value which is positively influenced by value drivers, and real costs increased by cost drivers. Use of UMTS technology and handset, applications that promote interaction and individualization are seen to promote the products quality, with UMTS technology also advancing speed and thus improve value. The implementation of the project comes together with some extra cost. However, it is worth noting that the increase in value is still larger than the increase in cost. For this reason Sony focused on capturing the value e which calls off for a wise tradeoff between consumer surplus and producer surplus; given that the company does not operate in a monopolistic market. Moreover, following the advancement in Sony’s operation with time, there is need t to include in the case study some other operations such as virtual payment fee which Sony has recently introduced to capture the real value of their products.
Work cited
Jelassi, Tawfik, and Albrecht Enders. Strategies for E-Business: Creating Value Through Electronic and Mobile Commerce : Concepts and Cases. Harlow, England: FT Prentice Hall, 2008. Print Read More
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