Preview

5 Forces sony

Satisfactory Essays
Open Document
Open Document
310 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
5 Forces sony
PORTERS FIVE FORCES ANALYSIS OF SONY CORPORATION 1. Threats of new Entry (Low):
Electronic industry needs huge amount of capitals. High scale economy and constant innovation is another barrier to a new entrant. Moreover, the government policy acts as entry barrier for a new company.
2. Bargaining Power of Buyer (High):
For Sony Corp. product the bargaining power of buyers very high as there is almost no switching cost from one brand to another. And the information technology provides the customers with wide range of alternatives.
3. Bargaining Power of Supplier (Low):
Sony has a global band of suppliers giving the suppliers no upper hand (bargaining power) over Sony. Moreover suppliers are comparatively small entity than Sony so suppliers have weak bargaining power. Sony usually negotiates directly with its supplier to obtain high quality product in low price.
4. Threat of Substitute Products (Low):
Sony’s varied range of products has no substitute or a very few that seems to be obsolete or have on foot out of the door. Thus the possibility threat of substitutes is moderately low. Considering that Sony has built a good reputation and strong customer loyalty, it effectively positions the company’s products against product substitute to some extent; this is a surplus for the company.
5. Intensity of Rivalry (High):
Industry rivalry is high due to relatively intense competition and high exit cost. It is also largely due to the numerous and equally balanced competitors in the markets, generally short product life cycle as well as high R&D, fixed and storage costs. The growth is slow and thus the intensity of competition. Sony’s high rivalry is causing them to lose profitability though the suppliers give them advantage over cost. There is no threat from substitute but still buyer find alternative as they have bargaining power. And the high entry and exit barrier gives them high risky returns

You May Also Find These Documents Helpful

  • Powerful Essays

    Marketing Plan Phase 1

    • 1309 Words
    • 6 Pages

    The introduction of any new product can be and intense process for any company. The Sony organization is a large world wide corporation that since its inception has proven to work towards electronics innovation. The new product that Sony is reviewing is the Sono-stick and prior to the development of this product several items will be reviewed; the overview of existing organization, a description of the product, the importance of marketing, SWOT analysis and the market research approach. The full marketing plan for this product will be enhanced by obtaining a full understanding of the product, its strengths and weaknesses and the research needed to identify if there is a viable marketplace in which to produce and sell the Sono-stick at a profitable rate within the Sony family.…

    • 1309 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Strategy Case Write 1102

    • 1690 Words
    • 5 Pages

    Bargaining power of customers (high and rising) – US customers are not brand-conscious in the LCD TV market and are sensitive to price change. Given the overall TV quality among different brands is more or less the same, LCD TV companies including Vizio have to attract customers by slashing prices. With more low-cost players entering into the market, it is expected that Vizio will face intensifying competition in winning customers.…

    • 1690 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Sony and Matshisuta

    • 1761 Words
    • 6 Pages

    Frist of all, the differences between Matsushita and Sony’s products is one of the primary reason that makes their decision various. In the reading, it reveals that Matsuhita was focusing more on the low-tech products such as NN-MX20WF (their new model mocrowave oven), DVD player, automatic washers and 29-inch TVs. One the contrary, Sony’s product is more distinctive and it emphasizes more on developing new technology. Indeed, Sony has successfully at commercializing new technologies into innoative products such as the transistor radio, tape recorder, Beta- Max video recorder, CD, Walkman, minidisk, DVD and even camera and camcorder. In another words, Matsushita just centrated on being customer intimate but Sony differenticated itself by innovation. Therefore, as we can notice, the functional products of Matsushita have low demand uncertainties, long product life cycle, low profit marginsm low product variety, low stockout cost and low obsolescence but the innovative products of Sony have high demand uncertainties, short product life cycle, high profit margins, high stockout cost and high obsolescence.…

    • 1761 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Vizio Strategy

    • 1815 Words
    • 8 Pages

    Intensity of Rivalry – rivalry intensity is very high as evidenced by the severe price competition as the case references (24% decline from 2006 – 2007 alone). Competition comes from the plethora of players, both established ones such as Phillips, Sony and Panasonic as well as upstarts such as Syntax-Brillian Corp.…

    • 1815 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Barco Projection System

    • 616 Words
    • 3 Pages

    (b) Based on the SWOT analysis, it is critical that BPS should react to the new threat imposed by Sony by introducing a new product which is significantly different and better from that of Sony otherwise there is a…

    • 616 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Sony Vaio Case

    • 1372 Words
    • 6 Pages

    VAIO is valued mainly by high-end consumers, who typically prefer to buy genuine brands rather than copycats, consequently are willing to pay a premium price for the intangible benefits. However, it is important to highlight that even if Sony brand in China was considered a premium brand, and is seen as “young and trendy” Chinese are generally unfamiliar or…

    • 1372 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Barco Case (Hbs 591-133)

    • 526 Words
    • 3 Pages

    * BPS was a small player (Barco N.V. Turnover: $150mn in 1988) could not afford a price war with Sony which has abundant financial resources (Sony Corp…

    • 526 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Sony Incorporation

    • 2523 Words
    • 11 Pages

    Kunii, I., Edwards, C., Greene, J., Grover, R., Lowry, T. (2002), "Can Sony regain the magic?", Business Week (USA), No.11 March, pp.46.…

    • 2523 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    3. Competition – the main competition are Sony and LG. Sony will offer the biggest competitive challenge in the international market, especially in its main market of Japan.…

    • 3708 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Sony and its suppliers

    • 339 Words
    • 2 Pages

    Another reason Sony can dictate terms more freely to its suppliers is the fact that a big company such as Sony can run its suppliers out of business. This aggressive tactic was used by Sony since the introduction of the Playstation2. Sony made this move by making a huge investment in semiconductors. By cutting off its suppliers and co-developed with Toshiba a CPU called Emotion Engine , which was later put to use on the Playstation2. In the mean time its competitor, Nintendo, used a CPU developed by IBM for Game Cube, which was competing against Playstation2 back then. By producing the CPU in-house Sony was able to eventually reduce the manufacturing cost of Emotion Engine significantly by realizing economic of scale and economic of scope, which had the ripple effect of successfully reducing the price of the Playstation console. Nintendo on the other hand struggled with this price war against Sony simply because it did not have much control over (its suppliers) one…

    • 339 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Looking back on the past decade of Sony Corporation, opportunities walked along with challenges. The “combination of giants” between Sony and Ericsson caught attention of the whole world. The invention of mini vertical mobile phone promptly captured the youth market. When Sony Ericsson was at its best, its sales figures were ranking Top Three in European and American markets. However, since 2008, Sony Ericsson almost has opted out of the top list in mobile phone industry. The revolution of iPhone and Android ruined Sony Ericsson’s confidence thoroughly. In addition, the political conflicts and historical factors, such as Diaoyu Island incident, to some extent, have affected the sales in recent years further.…

    • 2908 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    The competitive advantages Sony had was the following; Customer loyalty due to better graphics and more exciting programs, Cost advantages due to a much larger volume and a unique selling position through a much wider distribution.…

    • 1381 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    business and culture

    • 2692 Words
    • 11 Pages

    Sony is a global manufacturer of audio, video, communications and information technology’s consumer and professional markets.…

    • 2692 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Case Study 06 Sony

    • 544 Words
    • 3 Pages

    6. Besides in-house restructuring to strengthen its technological capabilities, what did Sony do to rejuvenate its businesses?…

    • 544 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Marketing Mix of Sony

    • 1743 Words
    • 7 Pages

    Product decision normally base on brand name, Functionality, Styling, Quality, Safety, Packaging, Repairs and Support, Warranty, accessories and Services. These product attributes can be manipulated depending on what the target market wants. Also, customers always look for new and improved things, which are why marketers should improve existing products, develop new ones, and discontinue old ones that are no longer needed or wanted by the customer. Sony has a variety of products ranging from electronic devices, games and entertainment. So, briefly Sony products can be categorized in the following major product categories:…

    • 1743 Words
    • 7 Pages
    Good Essays

Related Topics