ganization that will promote coordination across its business groups (ôForm 6-Kö). Its other powerful strategy is its strong policy of backward compatibility, an approach that puts it head and shoulders above its competition in terms of customer sales. A customer trying to decide between a Sony and another brand of music player for a similar price, for example, will be more likely to choose the Sony because he knows that he will still be able to play his music on the newest Sony that comes out, and the one after that.
SonyÆs marketing tactics of late have left much to be desired, however. Its latest fiascos concerning the music CDs that secretly installed a rootkit on usersÆ computers that runs spyware on them and enables hackers to break into them without the userÆs knowledge (Schneider), as well as phony movie critic accolades for two of its movies (Grossberg) and fake graffiti that Sony hired painters to create for touting its PSP (Singel), have tarnished SonyÆs credibility with consumers and its otherwise sterling reputation for integrity.
SonyÆs 4 PÆs reveal other weaknesses in the electronics giant, also. Its electronics products, formerly known for their high quality, are being widely panned by consumers who are noticing a dramatic decrease in Sony quality and service. Its products work sporadically, break down early, and have manufacturing flaws (Kharif, ôSony DCR TRV19ö). Its two latest movies, ôBewitchedö and ôStealth,ö were both flops (La Monica). Its competitors in the television market, Panasonic and Sharp, have caught up to it, and its ôonce ubiquitous Walkmanö has been replaced by AppleÆs iPod (La Monica). MicrosoftÆs Xbox 360 and SonyÆs new PlayStation 3 are hot competing products, but MicrosoftÆs product is coming out first (La Monica).
SonyÆs pricing has always been high, reflecting its much higher quality and longer development times on some products. Now that its quality and int...