A product may be definedas a service or items that are provided with the aim of satisfying customers’needs.
They may be tangible or intangible. In order to reach the destined locations,a distribution channel is used. Products are made at different costs and disposedat a particular price. Whenever a product is named, individuals can easilyrecognize it and it therefore becomes a brand. This makes it unique from otherproducts available in the market. However, it should be flexible in that itadapts easily to the incoming changes and trends in the industry. The organization to focus on in this case is Sony. It iscomprises of diverse businesses which range from electronics such ascommunication commodities, network services and video games.
Moreover, itoffers financial services through insurance schemes and banking as well asmovies. It is among the most preferred entertainment companies internationally. Their motto is a source of motivationand it states ‘Be moved’. The company holds a record due to the reserves ofcash it holds. Its shares are of high value therefore it generates large revenue.
The product of concern here is the smartphone produced by the corporation. Sony mobile initially began as a partnership between Sonyand Ericsson and it was therefore initially referred to as Sony Ericsson. Sonylater purchased shares from Ericsson and fully owned the entire organization.The company has come up with a totally different design of smart phones withunique features. The main aim was focussing more on the high end market for thephones so that the low quality products can be reduced in the market.
There are different types of markets. A perfect competitionmarket has many sellers and buyers. In this kind of market, it is difficult foranyone to alter the prices since there are many individuals involved thereforethe alternatives o be pursued are also numerous. In a monopoly system, there isonly a single producer of goods and services in demand without any substitute.The prices are determined by the entity considering that there is nocompetition. Moreover, there is an oligopoly which has many producers,monopolistic competition market and a monopsony.
Direct competition occurs when two or more organizationsoffer products and services of the same kind thus they end up competing forpotential clients in the same market. Indirect competition occurs where sellershave different products which satisfy the same customer wants. Sony smartphones will compete in market wheredirect competition is observed most likely in the Malaysian market where mostindividuals secure the latest gadget to fit in a certain social class.
This isas a result of the rising demand for communication and technology in the society.Mobilephones have made communication easier and the new smartphones are more reliablesince they are more advanced than the initial gadgets. Comparative advantage iswhen a state or a particular organization produces goods or services at a loweropportunity cost compared to the rest.
This means that the State or businessentity involved can produce goods that are cheaper compared to other countriesor entities. Forinstance, U.S companies buy the service of call centres from India since it ischeaper than locating the call centre in different states. Therefore Indiancall centres end up being better than those from America. It occurs more in goodssince they can be exported unlike services which are intangible.
However,entertainment, call centres and banking services are now easy to export withthe new changes that have improved technology. Competitive advantage makes acompany more appealing than the competitors and lures in more clients. Thecompany has various trade opportunities considering that Sony acquired itsshares from Ericsson, it can now perform independently and work towards innovationso that there may smartphones may be of a higher quality and easily marketable.Moreover, the company can make good use of the music industry and movie businessto deliver the content in demand to the clients. The PlayStation uniquefeatures are marketable internationally to date and they should be improved onas well as provision of a variety to choose from so that they can bemarketable.