Business strategy at sony

Business Strategy At Sony Company

INTRODUCTION
Sony is a leading provider of phones, its accessories and
PC cards in the entire world.
Sony's biggest competitors are Apple, Samsung, LG and
Microsoft.
The company is the fourth largest producer of mobile
handsets in the world.
Sony showcased sales of Yen 622.7m in the year 2012.

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Mission statement:
The mission statement helps to focuses on the production of products
abnd services. In order to contibute to stratgic planning process the
products and services must be creative, innovative and provide value
for money at the same time.
Vision statement:
The Vision statemnt of Sony allow it to become world leader in the
area of mobile phone industry. The long term objective of the
company lets it to become the largest entertainment company in the
area of broadband.

Contd..
• Sony's Goals and Objectives are:
• Continue growth with respect to sales and profit.
• Creation of high valued products and services for the consumers.
• To focus on introducing continuous technological innovation in its product and
service offering.
• To contribute towards natural environment as well as meeting the dreams of future
generation.
• To reduce the overall carbon footprint.
• To enhance the market share by 7 percent.
These goals and objectives help the company in achieve
the strategies formulated by strategic planning. The goals
and objectives makes its easier for the company to achieve
the strategic planning.

Contd..
• Sony's Core Competencies are:
• Miniaturization in the area of electronic usage.
• Creating products with innovative designs
• Strong marketing through advertisement and promotional tactics.
• Deep technical know how.
• Immense focus on research and development.
• Brand image and consumer loyalty.

Contd..
• Climatic conditions of a nation – Earthquake prone areas
of India, Tsunami in Japan.
• Upcoming technologies.
• Technical and human resource expertise present with
Sony.

SWOT analysis and Porters five force model are
important techniques to develop strategic business
plans for an organization. Effectiveness of these
techniques are described as under:
The effectiveness of SWOT analysis:
 To identify the internal and external business environment
conditions.
 With this, company can come to know about its strengths and
opportunities.
 Further, the firm would come to know about its weaknesses and
threats so that company can work upon them to improve them.

The effectiveness of Porters' five forces :
 By this technique, impact of external and internal forces can be
determined on company.
 Sony can assess the bargaining power of its consumers.
 Also , it is beneficial to get information about new entrants.
 Will be able to determine the threat of substitute products .
 Determine the competitor’s strategies and marketing activities.

SWOT helps to determine the
internal capacity of an
organization To analyse the
strategic position SWOT is
been done as followed:
Strengths(S):
 First identified company to deal in
mobile technology.
 Well-built administration policy.
 Innovation.
 Quality.
 Brand image
 High specialized integrated services.
Weakness(W):
 High pricing.
 Inter-rivalry among departments.

Contd..
Threats (T):
•Major competitors Samsung and MI
•Economic recession
•Electronic network security
Opportunities(O):
 Investment to gaming
segments
 Business expansion
internationally
 Better and increased number
of sales

Environmental audit is conducted with the help of Porters
five forces analysis and Pestle analysis.
(1) Porter’s five forces analysis
Intensity of competitive rivalry
 Is very high due to leading other competitors.
 Market segment are electronics, games financial services, pictures and
joint ventures.
 Sony leads the market by Bravia line LCD TV.
 They hold competitive cost over the rest of LCD market.
 The status of rivalry will not show any deteriorating mark in the
upcoming stages.
 Full focus on technological innovation high end design and product
differentiation from the rivalry.

Contd..
Threats of new entrants:
 It’s not easy to enter because the cost will be too high to compete with the
electronic giants that already exist.
 The intensity of new entrants is Low.
Threats of new Substitutes:
 Although, Sony has tried to differentiate their products through modern
design, high quality graphic and superior technology. But, still they have a
threat of new substitute products like iPod over Sony Walk man I pad over
Sony play station.
 Substitution like music download or streaming cause a negative effect on
Sony recording.

Contd..
Bargaining power of suppliers:
 Bargaining power of suppliers is low.
 There are a lot of companies that sell electronic parts which Sony can
choose from. These companies are the rival with others to propose the
lower price of parts.
Bargaining power of Customers:
 The bargaining power of customers of SMC is high.
 Customers have a choice of electronic products and can decide to choose
the product which they want.

(2) Pestle Analysis
Political:
 Taxation rates are high.
 Low rate of value added tax.
 Japan ranks 15th
in the world for
ease of doing business.
Economical:
 Low prices of Sony products.
 Increased Competition in Japan.
 Huge loss of 100 billion due to
natural calamity attacks.
Technological:
 Use of more improved and
advanced technologies.
 Company do not need to import
any technological product.
Social:
 Company has now started
focussing on the corporate social
responsibility activities.

Contd..
Legal:
 The legal regulations and
standards prevailing in the
country in which business
operates.
 The employment acts and
various laws.
Environmental factors:
 Uncertainty of climatic
conditions.
 Pollution and waste.
 Recycling of material.

When formulating new strategies stakeholders play key role i.e.
Employees:
 Provides information on the behalf of customer’s needs and preferences.
 Main role employees is to execute the plan of action.
 Conduct the organizational and environmental audit.
Customers:
 To provide relevant information to company with respect to their wants
and preferences.
 Buying of goods and services produced by SMC.

Contd..
Shareholders and investors:
 These are those who bought company's share and are the part of
ownership in firm.
They are concerned with the maximum outcomes in terms of profit.
Investors are those who invest their money into business as a capital to
earn their share from profits.
Investors want leaders to keep their promises, develop a compelling
growth strategy, align core competencies to the strategy and then to
ensure that people are committed to delivering services on these
promises.

 Market entry strategy will be the most suitable and feasible strategy
which can be adopted by SC.
 Benefits: Increased market share, enhanced customer base, high revenues
and awareness of brand image.
 For example: Entry in Afghanistan market for selling mobile phones.

REFERENCES
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals). Routledge.
Brueller, N. N., Carmeli, A. and Drori, I., 2014. How do different types of mergers and acquisitions facilitate
strategic agility. California Management Review. 56(3). pp. 39-57.
Laufs, K. and Schwens, C., 2014. Foreign market entry mode choice of small and medium-sized enterprises: A
systematic review and future research agenda. International Business Review. 23(6). pp. 1109-1126.
Karakaya, F. and Stahl, M. J., 2015. Global Barriers to Market Entry for Developing Country Businesses. In
Proceedings of the 1993 World Marketing Congress. Springer International Publishing.
Naidoo, V. and Wu, T., 2014. Innovations in marketing of higher education: Foreign market entry mode of not-for-
profit universities. Journal of Business & Industrial Marketing. 29(6). pp. 546-558.

Business strategy at sony

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