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| Sony focuses on production costs | |||
| Sony Corporation, for
example, once expected a technical lead of several years
for new products on which it had spent cash for research
and development. It was confident that it could recoup
its costs through exclusively marketing the novel
product. Today, however, competitors often release similar, competing products within a year. Sony has focused on lowering production costs by outsourcing and downsizing. It has also transferred production capacity from Japan and other high-wage countries into low-cost, developing countries. Furthermore, it concentrates on bringing an increased number of products to market. |
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