MANAGING PRODUCT FAMILIES - THE CASE OF THE SONY-WALKMAN

Success in fast cycle industries (e.g. consumer electronics) can depend both on rapid model replacement and on model longevity. Although Sony was as fast as any of its chief competitors in getting new models to market, an important explanation for the wide variety of models offered by the firm is the greater longevity of its key models. This finding adds an important insight to the conventional literature on time-based competition which emphasizes rapid innovation exclusively. Sony's special understanding of the US market enabled it to respond more effectively to life style differences by locating industrial designers in its key markets. Sony's strong design capability and effective division of labor (engineers lead generational and incremental projects, industrial designers and market personnel lead topological projects) allow for parallel model development. Investment in manufacturing flexibility amortized over multiple models within the product family make the rapid model changeover possible.