Table of Contents
Overview of Sony Corporation.
Strategies for organization to move forward.
This report aims to analysis Sony Corporation strategically. It will identify the influence of internal and external environment, for which PESTLE analysis and SWOT analysis of Sony Corporation will be carried out. The report will also provide a brief overview of the company along with the recommendations to the CEO and company director for the long-term direction of the business. It will provide future strategies for the company to move forward along with stakeholder analysis so that the corporation can accommodate in its operations to improve its performance.
Sony Corporation comes under Conglomerate industry as it operates in various sectors which include networked products and services; music; consumer products and devices; pictures; financial services and others. The comp0any was founded in 1946 by Akio Morita and Masaru Ibuka. Today, the Company has more than 114,400 employees with net income of ¥ 916.2 billion in 2019 and total assets of ¥23.039 trillion in 2020 (Hong 2018). Sony’s brand image has great influence on the global customers as it is involved in designing, improving, manufacturing and sales of electronic equipment and instruments, marketing of software’s and game consoles to final markets. The headquarters of the company is located in Tokyo, Japan and the company operates its subsidiaries across 200 countries in Europe, North America as well as Asia (Oliinyk, Kozmenko, Wiebe and Kozmenko 2018).
The company has strong brand portfolio which help it to expand its organization into new category of products. It provided training and learning programs resulting in high skilled workforce. To reach the potential customer the company have strong distribution network and it possess innovate marketing strategies along with strong flow of cash for new resources. The operation are carried out through automation resulting in consistency in high quality (Richeri 2016). The company has the capability to generate good return by expending its capital to build new revenue streams. Other strengths of the company include production capacity and adaptability, financial ratios, leadership in technology, price leadership and excellent customer service.
The company utilizes poor product demand forecasting resulting in missing the chances of opportunity from its competitors. It also have gained less success outside its business core area as it was unsuccessful in achieving profit for its new product segments. Moreover, as compared to the company’s competitors, it has range of product portfolio due to which it is unable to focus at single service or product. It possess gap in range of products due to inadequate technology. Other weaknesses of the company include stiff competition from strong brands on the market, price wars, little diversification, and lack of a strategic communication plan (Hong 2018).
The company can increase its profitability due to introduction to new taxation policy in different countries. Moreover, low inflation rate may result in stability in market resulting in opening new opportunities for the company in the market. The company also have the opportunity to gain new customers through innovative products which will help the company in increase its customer base and enhance the revenue. Other opportunities for the company include wide market Coverage and global presence, maintenance of low price leadership, improved supply Chain and increase in creativity and innovation (Foss and Saebi 2018).
Fluctuation in product standards and new laws resulting are the big threats for the company. Rising raw material cost and low quality products may result in degrading the reputation of the company. Moreover, the changing behavior of the customer is along with growing strength of local distributors and irregular supply of innovative products may result in less profit for the company. Other threats for the company include changing needs of the consumer, presence of other strong brands, product Imitation and emerging markets (Richeri 2016).
Changing policies harms the operation and performance of the business resulting in uncurtaining in business environment. Moreover, bureaucracy and corrupting along with taxation and trade restrictions are negatively affecting the business as the company is not able to invest in research and development activities. Political factors plays a significant role in improving the performance of the business (Alhashash, Alshammari and Al-Mnaies 2019).
Growing economy of various countries has a positive impact on the organization performance. Moreover, the unemployment rate and entering mature industry is challenging for the company due to market saturation. The GDP rate along with inflation rate and exchange rates also affects the long term strategies of the company. Market conditions for labor are needed to be predicted by the company for attracting skilled labors to improve performance (Oliinyk, Kozmenko, Wiebe and Kozmenko 2018).
The company is also affected by the changes in social trends that occur in the various country where it operates. Such changes greatly influence the demand of its products. The factors that affects are demographical trends, social norms and class distribution. Moreover, online shopping is increased that will help the company to gain more customers through its online channel (Richeri 2016).
The company highly depends on technological advances to innovate its products. Change in technology factors directly results in impacting the base of the customers for the company. For instance, social media marketing and R&D in technology can help the company to boost its productivity (Hong and Wang 2017).
The factors that impact the performance of the company include environmental laws, standards and regulation. The company can improve its performance by effectively managing recycling and waste management along with incorporating renewable technologies and producing eco-friendly products. Moreover, the weather and climatic conditions influences the efficiency of the business (Richeri 2016).
The company has to follow the law of every country where it works for better working conditions like employee protection laws, consumer protection law and intellectual property law. These legal factors plays a very important role in sustainability of the company as the company has to carry out its operation while adhering to this laws. As the company operates in number of countries around the globe it is important that operational processes and management of the company follows the laws of respective countries (Alhashash, Alshammari and Al-Mnaies 2019).
Market shift: Researching and considering the changes in the market, it is vital to target new customers. The current price needs to be lowered in order to appeal to the consumers. This can be done for a while until the consumers get used to the brand then the prices can later be adjusted to reasonable prices. For a business to succeed, it has to be in a position to supply the needs of the consumer (Foss and Saebi 2018).
Innovative and high quality products: The Company is way behind its competitors in the terms of innovation and high quality product, particularly in telecommunication industry. The company has to invest in research and development on order to improve its quality and innovativeness of the product so that the customers can be retained and base of the customers can be increased (Hong 2018).
Improving marketing and customer satisfaction: To reach large base of customer, the company has to improve its marketing strategies to attract large base of customers. In addition, the customers should also be provided with offers. Customer satisfaction is important from business point of view. To do this it is important to understand the consumer’s expectations by observed the current market trends and trying to meet them accordingly, in a manner that ensures that both external and internal customers are fully satisfied (Chen, Zhai, Li and Vucetic 2018). The company can use online platforms like social media and company’s official website to inform the customers about their new products and services. Moreover, the company should consider the customer feedbacks for improvement. Customers should also be provided with the reason for not providing the service at promised time.
Internal and external stockholders plays a very important role within the business. The stakeholder of the company are able to ensure the successful outcomes from the various projects of the company (Hong and Wang 2017). Stakeholders are largely affected by any decision made by the organization. There are two types of stakeholders primary and secondary. Primary are those who are directly affected and secondary are those who are indirectly affected by the actions of the organization (Foss and Saebi 2018).
It was found that the Sony Corporation has been left behind as far as technology is concerned. They have not embraced the global idea of an IT developed consumer base. Today in the market, the consumers are looking for working and easy to use operating systems and the android platform has already gained popularity among consumers (Hong and Wang 2017). The software integrates easily with other software’s easily. Sony should revise and adjust its pricing systems to get back fully to its position in the market. The decision for the company to focus on the lower segment of the market might have been well intended but clearly, it is not working to provide advantage to the company. The company should improve their market share today and should challenge its competitors. It is also true that it has the financial capability to cease such opportunities. However, for the company to be able to rescue its declining market share, there are vital technological changes that need to be made. Sony need to change and improve the technology they use in manufacturing their phones. Changing for instance the camera resolution and improving picture messaging will definitely attract consumers to buy phones under the Sony brand.
Alhashash, F., Alshammari, T. and Al-Mnaies, A. 2019. Sony Corporation. Journal of the community development in Asia, 2(2).
Chen, H., Zhai, C., Li, Y. and Vucetic, B. 2018. Cooperative strategies for wireless-powered communications: An overview. IEEE Wireless Communications, 25(4), pp.112-119.
Foss, N.J. and Saebi, T. 2018. Business models and business model innovation: Between wicked and paradigmatic problems. Long Range Planning, 51(1), pp.9-21.
Hong, S. 2018. Financial Situation Assessment of the Sony Corporation. Available at: http://dspace5.vsb.cz/bitstream/handle/10084/127484/HON0091_EKF_B6202_6202R010_2018.pdf?sequence=1&isAllowed=y
Hong, Y.U. and Wang, J.Y.,2017. Analysis and Suggestion on the Development of SONY. DEStech Transactions on Economics, Business and Management, (icem). Available at: http://www.dpi-proceedings.com/index.php/dtem/article/view/13136
Oliinyk, V., Kozmenko, O., Wiebe, I. and Kozmenko, S. 2018. Optimal control over the process of innovative product diffusion: the case of Sony corporation. Economics & Sociology, 11(3), pp.265-285.
Richeri, G. 2016. Global film market, regional problems. Global Media and China, 1(4), pp.312-330.
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