Sony Analysis

Topics: Sony, PlayStation 3, Sony Computer Entertainment Pages: 14 (3177 words) Published: May 1, 2011








Consumer electronics, broadcast and professional systems and information technology products are widely used in this globe. For example Japan was one of the leading countries in the industry of electronical goods. Japanese electronic products share a large portion of the Japanese trade industry, and their high quality ranks them as one of the Japan’s representative industrial products. Many Japanese electronics manufacturers are expanding their business overseas, which ranks the electronics industry as the most internationalized industry of Japan. Meanwhile, Chinese and Korean businesses are recently growing rapidly, making Japanese electronic industry to focus more on the competition against those oversea businesses. (Japanese, 2011)

Sony is a market leader in the consumer electronics industry. It’s major competitive advantage is quality and innovation, and senior management always keeps these in mind while formulating long-term strategies.

In this research, we will explain the current situation of the Sony Company by using many strategic tools which leads us to some recommendations to help the corporation face the future strategies and challenges.


Sony, originally known as Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation) was founded in 1946 with a start-up capital of 190,000 yen. It started as a research and manufacturing company of telecommunications and measuring equipment which over the years grew to become what Sony stands for today.

Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its eight operating segments – Consumer Products & Devices (CPD), Networked Products & Services (NPS), B2B & Disc Manufacturing (B2B & Disc), Pictures, Music, Financial Services, Sony Ericsson and All Other. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Ericsson, and Sony Financial. As a semiconductor maker, Sony is among the Worldwide Top 20 Semiconductor Sales Leaders. Its founders Akio Morita and Masaru Ibuka derived the name from sonus, the Latin word for sound, and also from the English slang word "sonny", since they considered themselves to be "sonny boys", a loan word into Japanese which in the early 1950s connoted smart and presentable young men. (Sony, 2011)

Below is a small organizational chart to demonstrate the diversified product portfolio they represent:

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Source: Sony Organizational Chart

As we can see, Sony Corporation has evolved into a group of companies that specialize in financial services to music entertainment to Sony Ericsson mobile phones. They have more than 135 affiliated companies all over the world, out of which more than 45 are in Japan and has approximately 167,900 employees working for them.


SWOT analysis is a practical and simple tool to analyze the environment of an organization. SWOT is the short terms of: Strength, Weakness, Opportunities and Threats which are expected to face the organization in the environment


Sony is known for its innovation. Their products always have a unique touch and this is solely because of the extensive R&D they conduct.

For e.g. When customers started getting familiar with the Play Station 1 (PS1), PS2 was launched in no time making people want switch from PS1 to PS2. Sony managed to retain its customers in this way and avoided them losing interest in Sony products.

Apart from just improvising on their products, Sony also introduced...
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