Sony - an Overview

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  • Topic: Sony, Akio Morita, Sony Ericsson
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  • Published : April 16, 2013
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MKT4100
STRATEGIC MARKETING MANAGEMENT

A Report On

Title: Sony Corporation
From: Prakash Kumar Chaudhary (M00429964)

To: Dr. Mark Mcpherson
Date: 17th April, 2013

PHASE – 1
Executive Summary:

Terms of Reference:
Sony Corp. was founded on May 7th, 1946 by Mr. Akio Morita. Sony has categorised its products into 8 Major Fields and they are Television, Digital Imaging, Audio/Video, PC’s and other networked products, Semiconductors, Electronic Components, Professional solutions, and Medical. The head office of Sony Corp. is located at Tokyo, Kanagawa, Miyagi. There are 162,700 people working for Sony (March 31, 2012). The revenue generated by Sony in year 2011 is 6,493,200 Million Yen globally including all the sales. Sony primarily focuses on Electronics, Games, Entertainment, and Financial Service sectors. Procedure:

The methods followed to do the situation analysis for Sony Corporation are PESTLE Analysis, S.W.O.T Analysis, and Porter’s Five Forces. The analysis is done concerning two factors Macro-Environment and Micro-Environment. The fields covered by doing analyses are Competitor analysis, Market analysis, Environmental analysis, Customer analysis and Internal analysis. Findings:

a. Competitors Analysis: Since Sony is diversified into so many different product lines and product ranges they have so many competitors in all the different products. The core business of Sony Corporation is ‘Electronics’ so, their main competitors are Samsung, Onida, Panasonic, Philips, Apple, Sanyo, L.G. and many other small competitors. Sony had high cost of production which reflected when they had a loss of $6.3 billion consecutively for a period of 8 years. This loss affected the competitors to gain a competitive edge and take over the Market Share. The competitors like Apple and Samsung have better technology compared to Sony. Sony is adapting the change very slow where as its competitors are immediately adapting and implementing the change. For example: Sony Walkman rocked the music world for a long period of time but when Apple IPod was launched Sony dint take any reaction and let Apple take the control over Market and then at a later stage when the shares of Sony fell down because of low sales of Walkman then Sony introduced ‘MP3’ in response of ‘IPod’. The change adopted was really late. Even when the ‘Android’ software was launched then L.G. and Samsung were the first ones who adopted the software first and then Sony adopted it at a later stage. Overall Sony has several competitors who are equally balanced with Sony and because of this intensive competition they are losing their profitability. b. Market Analysis: There is a very big market for all the players in the market. The total sales by Sony Corporation are 6,493,200 Million Yen which determines the Market size that is very high. Sony does not follow the trends. There is very less accessibility and connectivity with the customers is very late. Initially, technology of Sony created space in consumers’ mind which helped them develop a reputed brand. But, slowly the market became more competitive and Sony couldn’t match the speed of its competitors. Sony has an opportunity to develop four screen strategies and take a leap in the market. Four screen strategies is a source in which the technology can be used for multi-purpose like touch screen, games, calls, mp3, etc… Another option for Sony is in to enter the healthcare-imaging sector which is possible through an acquisition of 30% stake in Olympus. Olympus is one of the leading imaging sectors which produce its own cameras. There is a huge scope for Sony Corp. it just has to realise it. c. Environmental Analysis: Sony Corporation undertakes many environmental activities which is targeting the current and next generation. According to Sony’s mission statement for CSR is to engage with innovation, wholesome business practices, and diversity with a goal for following corporate philosophy. They...
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