Everyone wonders who will replace Sony
The buzz today was about who will step up to take Sony's place in consumer electronics. The The New York Timesclaims that Samsung is now what Sony once was. On the other hand, the Wall Street Journal claims that American companies are now taking over the lead, noting the success of Apple, Microsoft, Kodak, and Radio Shack. In fact, on the WSJ's editorial page, they even wrote an obituary for Japan, Inc., claiming there is now no Japanese way of doing business that is successful.
Blackfriars thinks that the New York Times may have a better point of view here than the Wall Street Journal. There is no question that Samsung is on a roll, nowadays, as we noted a couple days ago. And we've also commented on the vision and ongoing success of American companies like Apple and Google. But we also think that the American press, particularly the WSJ, are writing the obituary of Japan much too quickly.
The place we would look for outstanding growth is at those companies that have built big barriers to entry, be they manufacturing plants, software products, or outstanding brands. Those types of assets are difficult to attack without deep pockets and stronger will. Three companies that come to our mind who have these types of assets are those that actually manufacture flat panel displays. On the plasma front, that's companies like Korean giant LG, Samsung, and Panasonic. In LCDs, it's LG, Samsung, and Sharp. What about Apple? They actually have three different hard-to-assail assets: a #1 worldwide brand, killer music and OS software, and an asset often ignored by the media: strong business relationships with both music and movie companies.
And what about Sony? It is just launching one of the hottest products it has ever built, the Sony Portable Playstation. It will also launch its Playstation 3 sometime in the next year. While it may struggle for a while, the company still has an amazing strength in its brand. In the words of a Samsung VP executive in the New York Times article:
In the words of Mark Twain, rumors of Sony's death are greatly exaggerated.
Blackfriars thinks that the New York Times may have a better point of view here than the Wall Street Journal. There is no question that Samsung is on a roll, nowadays, as we noted a couple days ago. And we've also commented on the vision and ongoing success of American companies like Apple and Google. But we also think that the American press, particularly the WSJ, are writing the obituary of Japan much too quickly.
The place we would look for outstanding growth is at those companies that have built big barriers to entry, be they manufacturing plants, software products, or outstanding brands. Those types of assets are difficult to attack without deep pockets and stronger will. Three companies that come to our mind who have these types of assets are those that actually manufacture flat panel displays. On the plasma front, that's companies like Korean giant LG, Samsung, and Panasonic. In LCDs, it's LG, Samsung, and Sharp. What about Apple? They actually have three different hard-to-assail assets: a #1 worldwide brand, killer music and OS software, and an asset often ignored by the media: strong business relationships with both music and movie companies.
And what about Sony? It is just launching one of the hottest products it has ever built, the Sony Portable Playstation. It will also launch its Playstation 3 sometime in the next year. While it may struggle for a while, the company still has an amazing strength in its brand. In the words of a Samsung VP executive in the New York Times article:
"My product may be better today in a blind test but consumers love S-O-N-Y branded on their TV's"
In the words of Mark Twain, rumors of Sony's death are greatly exaggerated.
posted by Carl Howe at
8:05 AM
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