Why Sony Failed at the Decision Stage
There are a number of reasons why Sony failed at the decision stage namely because of the consumers did not adopt to the innovation of the Minidisc. The Minidisc did not adopt to the music and computer industry due to consumers rejection of this product.
- Adult and teenage listeners did not adopt to Minidisc innovation due to the fact of new technology such as cd and mp3s because of home entertainment and smaller, portable and compatible product,
- News reporters of the music industry such as rolling stone decide that the minidisc was a popular product for the music industry (Levitt pp. 1998)
- Retailers are not jumping on the minidisc bandwagon either even circuit city which seems to be placing some advertising support behind the format of the minidisc (Levitt pp. 1998)
- Making matters worse , many industry insiders as well as Sony officials place the blame for the format misfortunes on Sony itself (Levitt p,2 1998)
- According to Rogers Sony failed to adopt to the consumers reject the minidisc “rejection is a decision not to adopt an innovation (Rogers p,177 2003)
- Unreceptive American consumer market which is vastly differed from the receptive Japanese consumer market (Shin Hong pp. 2000)
- American population or consumers were not aware or still completely that the minidisc exists in the market.
- One such factor is the early adopter market, Japanese consumers purchase new and expensive technologies faster than the average consumer (Shin Hong pp. 2000)
- Japan has a very active early adopter market, especially in electronics (Shin Hong pp. 2000)
- The American market was highly averse to purchasing the expensive MD players and disc. (Shin Hong pp. 2000)
- The American market unreceptive to MD technology , the American Market lacked the “high CD price effect”. (Shin Hong p. 5 2000)
In the decision stage concerning the Minidisc the Japanese market accepted the innovation, however in the U.S Market the Minidisc appeared to reject the innovation due to the lack of interest and the high price. Despite poor sales in the United States which is a large market of consumers Sony management had to adopt to the consumers by rebranding, reinvention and changing the price to remain competitive and attract consumers not only in U.S but world wide, however many consumers did not adopt to the innovation.