Swot Analysis of Sony

Topics: Sony, Sony Financial, Brand Pages: 6 (2065 words) Published: April 5, 2011
Sony Corporation is a multinational corporation headquartered in Minato, Tokyo Japan. Commonly referred as Sony, is a leader in electronics, video, communication and IT consumer products. They are into financial services which includes AEGON Sony life insurance, Sony Bank, Sony Bank Securities, Sony Financial holdings etc. Sony was founded in 1946 by Akio Morita and Masaru Ibuka. The products are divided into six categories Audio, Video, Televisions, Information and communication, Semiconductors and Electronic components. Sony employs 171,300 as of March 2009 and their sales and operating revenue for 2008 was estimated to be around 7,730,000 million yen (www.sony.net). Core Competency

According to Hamel & Prahalad cited in Masrani (n.d), core competencies are a “bundle of skills and technologies that enables a company to provide a particular benefit to customers”. For Sony the core competency is its Miniaturization of products. Miniaturization

According to merriam-webster (n.d) miniaturization is described as “to design or construct in small size”. In the Electronics Industry small is always beautiful, fast and profitable. Miniaturization played a major role in Sony success. Sony successfully developed and capitalized on the miniaturization developments and gathered good rewards (Hess, 1991). Hara (n.d) explains the height of success of miniaturization in the invention of Walkman, a music instrument which has totally changed the way people listens to music. This helped the company to gain a worldwide identity and uniqueness. This identification was unable to be copied by any rivals companies in the world. The miniaturization products include transistor radio, videotape recorder, floppy disk, CD player, digital VCR and flat screen high definition TV. Sony is able to stick on its core competency and is able to produce miniature products. Latest products include Play station, XPERIA X10 mobile into its product line. Strategic Advantage

Sony capitalized its core competency by producing miniature product which helped them earn a global brand image. Not only producing small they also was able to produce them of good quality. Sony spread its wings worldwide and has a presence in more than two hundred countries. Diversified geographical reach helped them to gain competitive advantage over its competitors. The brand Image that they gained not only helped them to enter new markets but also helped them to gain bargaining power with their suppliers. This is achieved by its highly quality miniature products that become a part of every household. Sony success in development also bank on its strong R&D department. The strong workforce works on the cutting edge of technology in order to provide new product to sustain the number one position. Smart brands like Sony provided everything the customers expect in order to avoid the inducement by the competition. Sony biggest strength will be its Customer loyalty. Sony uses its brand name and quality products to gain Customer loyalty. A recent survey shows that about 60% of the current PS2 users are interested to buy the latest PS3 from Sony. This brand loyalty is the highest among the industry players and helps them to gain advantage over their competitors. In order to increase the customer base and their loyalty, Sony introduced online service to connect its products to customers in November 2009. The customers can download needed movies and games directly from this service (Kageyama, 2009). SWOT Analysis

Brand Image
Sony’s main strength is its brand image. The company has presence in all the major countries. The Sony brand is well regarded amongst all the consumers. The brand awareness of the company is all also really good and is recognized in all the major markets. According to the Harris Interactive poll on consumer brands in the United States, Sony ranked number one during the 2001-2007 period. Sony also positioned as number one in the brand power...
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