h CamScanner Question 1 (Compulsory): Below is an extract of the case study that was given to you at the beginning of the semester, entitled 'Analysis and Comparison of Sony, Apple and Google: Strategy Standpoint. Read it carefully and answer the questions that follow. Furnitu Sony Corporation, established in 1946, and previously an innovative and market leader in the electronic industry, is now facing many challenges. Sony's profitability has fallen significantly over the years. Sony Corporation uses different business strategies for growth for different products, portfolios and markets which involve product and market development, diversification and penetration strategies (http://www.sony.net/SonyInfo/News/Press/201204/12-056E/). For instance, in India, where Sony has a strong market share, relies on advertising and penetration pricing to increase sales (http://businessinsider.com/heres-sonys-new-business-strategy-2015-2). However, in locations like Africa, where Sony has low market share, it uses market development for growth and therefore introduces its existing products like TV to this relatively new market to increase sales (Abdullah, 2014). generic strategy also involves focus, differentiation, whereby it is constantly launching new products in the USA, European and some Asian markets. Sony has different business models for different products in different markets which is in alignment with its strategy for growth. For instance, users of Play Station 4, which is considered a "Growth driver" are permitted to play games for a limited selection of the titles for trial periods, which consumers have to subscribe after the trial period (Chang, 2008). Further, Sony uses strategic alliances and spin-offs to manage risk (Ireland, Hoskisson & Hitt, 2006). Hill and Jones (2004) suggested that Sony's business model has led the company to diversifying into too many industries resulting in an increased cost structure, leading to swallowing of profits. Typically Sony has ventured into the medical peripherals and diagnostic equipment market as growth strategy for diversification, which led to the acquisition of iCyt and Micronics, manufacturers of cellular analysis equipment and medical and diagnostic equipment (http://businessinsider.com/heres- sonys-new-business-strategy-2015-2). Sony has taken several actions to renew its performance including cutting cost to increase efficiency but with not much success (Hill and Jones, 2004). This has clearly highlighted the fact that Sony's business model is not aligned with its strategy formulation, in so far as in some cases Sony continues to diversify into many industries. Apple Inc. with its headquarters in California, USA, was established in 1976. Apple is the most valuable brand and Technology Company in the world with market capitalization of over $740 as at May 201 (http://www.forbes.com/powerful-brands/list/#tab:rank). Apple designs and manufactures mobil communications and media devices, personal computers, portable digital music players as well a related software, peripherals and network solutions (Nielson, 2014). Apple's strategy is to create premier products both hardware and software, with special features and charge a premium price with high quality user experience, with superior ease of use, seamless integration, differentiation innovative, and aesthetic design (http://bmimatters.com/2012/03/29/understanding-apple-business-model/). Apple can distinguish itself from others due to its expertise in hardware, software and services which others are finding it difficult to copy. Apple's vertical integration strategy has helped to build a closed ecosystem with the company having control over almost every activity in the supply chain - from design to retail - it has a very efficient supply chain' (Nielson, 2014). Thus, Apple controls its chips manufacturing follows extreme strict software standards and controls its retail stores as well as value chain and its component costs. The devices and software that Apple makes are designed to work well with each other and sync with multiple devices without much effort and interfaces are similar across Apple devices (Nielson, 2014). Apple's strategy of only producing premier products with high pricing may not be workable in all markets like Africa, which has meant Apple has ignored this huge market for a considerable time. Apple's business strategy is in sync with its business model in that Apple has a pricing strategy which offer a small number of products, focus on the high-end, priority to profit over market share, and create an aura or nimbus effect that makes customers to crave and have a demand for new Apple products (Nielson, 2014). That is, through innovation Apple has power over prices of their products. By focusing on customers that are willing to pay more, and maintaining a premium price, Apple have developed an artificial entry barrier to competitors. This strategy may not be sustainable in the long term so far as other companies like Samsung continue to innovate and churn out high innovative products. Apple outsource its production to low-cost countries and source for high-paying jobs in the USA, which has helped Apple to become highly competitive and profitable. Google, established in 1998, is a computer software and a dominant web search engine company, based in California, USA, and consist of many subsidiaries. Google, the third most valuable brand and Technology Company in the world has 66% of search market share (http://bmimatters.com/2012/03/29/understanding-google-business-model/). Google operates in over forty (40) countries with about seven (70) offices in these locations and had about one hundred and eighty (180) subsidiaries as at April 2015, mostly through acquisitions, including Google Earth, YouTube (vide sharing); and Gmail, a free email service (http://www.forbes.com/nowerful