It incorporates the following main strategic business units (Subs): 0 Electronics (including the TV, computing, digital imaging, audio electronics and mobile phones) 0 Video games easiness unit (Sony Pollination) 0 Music (Sony Music Entertainment) 0 Motion pictures (Sony Pictures Entertainment) 0 Financial Services (Sony Financial Holdings) The main competitors of Sonny’s electronics SUB would be Samsung Electronics or Panasonic electronics business. Sonny’s video game business faces major competition from the Microsoft gaming division and from Nintendo.
Sony Music mainly competes with Universal Music Group and Warner Music Group. The main competitors of Sony Pictures Entertainment include Universal Studios, Warner Brothers Entertainment, but also The Walt Disney Studios. Sonny’s Financial Services SUB competes mainly with the Nippon Life Insurance Company. Deanne Deanne, also known as Grouper Deanne, is a multinational corporation positioned in the food/ nutrition industry and headquartered in Paris, France.
It incorporates the following strategic business units: 0 Mineral water (including brands such as Avian, Pelvic and others) 0 Food products (including dairy and baby food) 0 Advanced medical nutrition (under Daemon’s healthcare division “Nutria”) The main competitors of Daemon’s mineral water business unit include Nestle© Waters (the bottled water division of the Nestle© Group) and the bottled water products of
PepsiCo, Inc. Daemon’s food products division faces the biggest competition from Kraft Foods. Daemon’s medical nutrition business unit mainly competes with the consumer health (ETC) product division of Innovator International GAG. Sources include: http://www. Sony. Net/, http://www. Deanne. Mom strategic Marketing WAS 2012/13 Assignment b – Concepts to define relevant markets of strategic groups Physical- technological homogeneity Advantages: 0 The relevant market of a strategic group can be exactly defined by the products that are being sold 0 Thus, competitors can be easily identified by comparing measurable characteristics of one’s own products and and the strategic group’s competition might be too narrow 0 relevant competitors offering different products with similar functionality might be neglected leading to the loss of customers to these competitors This concept can for example be applied well in the automobile industry, as a consumer who wants to buy a car is not likely to switch to a physically-technologically different product.
Instead, the consumer is probably going to make his/her decision between physicallytechnologically similar reduces (namely automobiles with similar characteristics) of different brands. On the other hand, this concept would not suit the following example: Printed books and eBook readers are clearly physically-technologically heterogeneous. Still, those two products are considered to be competitors, as they serve a similar function. Substitutability in use Advantages: 0 Allows for a broader and more complete view of the relevant market 0 Can be beneficial in assessing changes in the market, as new innovative products, that at first might not seem to be direct competition, might be increasingly used by consumers as substitutes. Example: People now substitute their previously used compact digital cameras with mobile phones, which increasingly offer integrated cameras with comparable photo quality) 0 In general, a demand- related approach is useful, as even the most exact product-based definition of a market is of little use if the consumers have a different understanding of that market/ segment; it is crucial to examine the customers’ views and (“substituting”) behaviors on the relevant market
