Over several decades, there are several forces and rapid change in worldwide businesses which have been driven companies around the world attempting to survive in this uncontrollable changing.
Such factors are tariff reduction, non-tariff barrier, free trade agreement, maturity in domestic market, threat from worldwide competitors and the rise of newly industrializing counties (NICs) such as Thailand, Hong Kong, Taiwan and so on where able to back up for sophisticated manufacturing operations with low labor costs. These examples force worldwide companies to act more and more globally in order to be able to stay in the high competitive level in the rapidly change in global businesses and also to exploit the benefits from globalization.
Consequently, many companies have come up with several global strategies. Currently, many worldwide companies being enjoy the benefits through their global strategies. However, to success in the global markets only good global strategies are not adequate; balancing a degree of using global strategies is also importance. This is because local culture and taste are significant factors which cannot be ignored.
There is undisputed that Japanese companies are good examples for worldwide companies to benchmark the way they doing business globally. Japanese companies always come up with the effective global strategies and eventually can conquer many western markets and also US markets.
This report will mainly focus on Sony Corporation which has been successful over several decades to exploit the benefits from globalization. The example of their global strategies and benefits which they have exploited from those strategies will be discussed in this paper.
To success in developing global strategy, understanding the meaning of globalization is a significant requirement for every company. The term “globalization” describes the increased mobility of goods, services, labors, technology and capita throughout the world.
Additionally, Raskin (2002) stated that globalization can be defined as the worldwide integration of economic, culture, political, religious, social systems. Moreover, he also stated that globalization is the increasing connectivity of economies and way of life across the world which leads to the convergence of patterns of production and consumption which resulted in homogenization of culture.
In term of economies, globalization is the convergence of prices, products, wages, rates of interest and profits towards developed country norms (Ismail, 2003). Moreover, Theodore (1983) supported that globalization of the economy depends on human migration, international trade, movement of capital, integration of financial market, the growing economic interdependence of countries worldwide through increasing volume and variety of cross-boarder transaction, and free international capital flow.
Picture: Tokyo Telecommunications Engineering Corporation
Former Company Name: Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation), also known as “Totsuko” Company Name: Sony Corporation officially changed in 1958
Founded: in 1946 By Masaru Ibuka and Akio Morita
Picture: Masaru Ibuka and Akio Morita, The founders of Sony Corporation
Product Name: SONY
The First Sony Brand Product: TR-55 transistor radio which had been first introduced globally in US market
Picture: TR-55 transistor radio
Former Brand: Totsuko
Audio: Home audio, portable audio, etc.
Video: Video cameras, digital still cameras, and DVD-Video players/recorders, and Digital- broadcasting receiving systems Televisions: LCD televisions, projection televisions, CRT-based televisions Information and Communications: PC, printer system, broadcast and professional use audio/video/monitors and other professional use equipment Semiconductors: LCD,...