Business Strategy at Sony

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Business Strategy At Sony Company
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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.

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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.

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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.

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Contd..

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

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• 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.

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• 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 competitors strategies and
  marketing activities.

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• 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.

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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

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• Environmental audit is conducted with the help of
  Porters five forces analysis and Pestle analysis.
• (1) Porters 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.

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• Contd..
• Threats of new entrants
• Its 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.

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• 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.

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(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.

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• 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.

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• When formulating new strategies stakeholders play
  key role i.e.
• Employees
• Provides information on the behalf of customers
  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.

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• 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.

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• 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.

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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.
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