We have studied Resource based View (RBV) and discussed about five tests to analyze the value of a particular resource.The test of durability tells us the useful life of asset(tangible or intangible).Here, the example of SONY first High Definition Television fits best.When SONY introduced this product in the market,it was a new technology and its price was very high.SONY got high profits form its new product.This product targeted those customers who were willing to pay high price for the new technology.After some time,other companies also came and imitated this technology.The price of HDTV dropped and the profits of SONY also decreased but SONY has skimmed the profits from the market.
This example shows that technology is a resource which quickly loses its value and imitated by other competing companies.
8 comments:
Technology it self can be imitated, but the way it is used is something very hard to imitate!!!
Still, the aesthetic value that Sony offers to its customers is a lot different!!!
sony has always tried to gain a competitive edge based on technology: the concept of 'make.believe' and 'what will they do next'
technology sure can be imitated and a company cannot completely build its strategy upon it alone, however, huge companies like sony, have the ability to invest highly in technology and thus create a strong barrier for entrants. the strategy of skimming the profits based on technology is their strategy, and the key is that they continually build on it and leverage it to keep up pace with the industry. without this they will just fall back.
Technology can be imitate but reliability of that technology is more important. Sony always known in the market because of their relible technology. Other brands follow its technology but they suffer in reliability.
I agree with Burraq
As Nobel being the new player with market penetration strategy is suffering quality problems
People still preffer Sony even of its high prices.
I think the customers prefer Sony HDTV and its other electronics products because of its strong brand base.Sony positions itself for innovation and reliability both of which are difficult to imitate.
sony is known for its reliability and innovation that is why, customers are loyal and stick to buy it and these traits are hard to be copied!
true..yes sony has positioned itself in the way that even if the technology can be imitataed their brand recognition can not be replaced so easily.
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