MANAGING PRODUCT FAMILIES - THE CASE OF THE SONY-WALKMAN

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