A vivid example of the silo problem — the failure of autonomous product and functional silos to cooperate — comes from Sony’s incredible miss of the iPod market, as recounted in the new Wiley book Sony vs. Samsung by Sea-Jin Chang. The iPod was a natural for Sony; it was theirs to lose. Sony had long been the leader in portable music, from the Walkman to portable CD players to the mini-disc. And Sony, unlike Apple, had a big presence in music. More generally, Sony has been the miniaturization company ever since the “transistor radios” of the ’50s, and no firm has been better at creating new categories than Sony.

 

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