Benefits And Disadvantages Of Sony - 1373 Words

†¢ Samsung concentrates in its manufacturer. For example, Mobile phones are manufactured in Vietnam more than 50% and only 8% in Korea. In addition, it also needs to rely on its few suppliers. For instance, it has to rely on Melfas for the touchscreen compartment. †¢ In comparison, it seems that overall Sony has better strategy to manage the supply concentration risk. For the supply side, it has better supply management strategy to limit the concentration risks while Samsung has to rely on some close and trusted relationship suppliers. However, the concentration of Sony’s plants and properties are highly concentrated in Japan. This concentration has both advantages and disadvantages. The advantage is that Sony will be more familiar with the regulations and culture and has better quality control when it operates in its own country. Meanwhile, Samsung may have more difficulties managing manufactures in Vietnam. †¢ However, the disadvantage for Sony is that the manufacturing cost is higher due to higher labor costs, which would eventually affect the company’s competitiveness. †¢ The bad thing for both companies for highly concentrated is that if something occurs, it will hurt the company. For example, if there is an Earthquake in Japan or a typhoon in Vietnam, there will be huge property losses and potential delay in sales. Therefore, if both companies mismanage this, they may losses hundred millions or even billions dollars. †¢ This risk may or may not exceed risk toleranceShow MoreRelatedThe Costs Of The Program917 Words   |  4 Pagesother big name consoles like the XBOX, its product does not fully utilize it computing power thereby limiting its capabilities. As consumer needs change the console has gone from being just a simple gaming product to an in-home entertainment system and Sony should push it to it max. 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