Reference no: EM132242266

Sony's Headphones to Challenge Bose and Beats

In the previous discussion, we learned how brands need to rejuvenate in order to stay relevant, or others , i.e., micro-brands, would do it for them. In this discussion, we see how Sony reposition its product by bring the quality (and prices) of its headphones to a higher standard to align with its brand. When Ichiro Takagi took over Sony's audio business seven years ago, the unit took pride in being the global No. 1 headphones in terms of units sold. But most were $10 headphones sold for minimal profit at grocery stores. Now Takagi is showing off the latest version of his flagship product, a $350 pair of noise-canceling wireless headphones. The $350 headphones can detect the owner's facial shape, hairstyle and presence of glasses, as well as pressure changes in an airplane, all to optimize the noise-canceling feature. Sony’s audio business is a prime example of how the company got back to profitability in recent years. By 2011, Sony had nearly given up on its old hardware products. That changed under new top management in 2012, which pushed the audio team to drop cheap products and focus on a few high-end models. Mr. Takagi scrapped an organizational chart that had separate groups of engineers focusing on subcategories like car audio. With the changes in Sony's audio strategy, more young engineers are raising their hands to join the department.

DISCUSSION QUESTIONS:

1. Discuss the opportunities that have emerged for companies like Sony due to the growth in music streaming services.

2. Why did the management at Sony decide to alter its strategy and re-position the headphones business? Do you think Sony’s headphones can compete with Bose and Apple's Beats? Why or why not?