Threat of substitute products or services • Although Sony has tries to differentiate their products through modern design, high quality graphic and superior technology, they still have threat of substitute product like iPod over Sony Walkman, iPad or Android or Tablet Game over Sony PlayStation, and HD DVD over Blu-Ray.
• Substitution like music download or streaming cause an effect on Sony recording music industry.
• Since the price is high consumer switching to other products which is close to the substitute.
• Sony need to think about competitors and customer loyalty too, so people can choose Sony over other substitute.
4.Threat of Substitute Products (Low): The products can be substituted by the same need of consumers (Campbell et al, 2002). Campbell (2002) insisted that the threat of substitute might have 2 factors which are the price and performance of the substitute and willingness of buyers to switch to the substitute. First the price and performance of the substitute, Secondly the willingness of buyers to switch to the substitute. SONY’s varied range of products has no substitute or a very few that seems to be obsolete or have on foot out of the door. Thus the possibility threat of substitutes is moderately low. Considering that SONY has built a good reputation and strong customer loyalty, it effectively positions the company’s products against product substitute to some extent; this is a surplus for the company.