Sony Strategy

Topics: Sony, Strategic management, Sony Pictures Entertainment Pages: 8 (2591 words) Published: August 2, 2010

Success in any company that operates for marketing and profit acquisition lies on the ability of the management in positioning and establishing the products/services being offered. Furthermore, the ability of the company and its management to compete and maintain a competitive edge among its competitor is another basis to say that it is successful. The constant development and innovation on the product line and the growing number of clientele also define the corporate standing of a company. This paper analyses the strategic capability of a company in an electronic industry, SONY Corporation. In analysing how SONY Corporation is competitive, the study utilised SWOT, resource audit, core competencies and value chain analyses for the industry attractiveness. Practical and strategic recommendations are elicited in relation to some pitfalls observed in the case study. Furthermore, analysis on the possible steps taken by SONY are also discussed.

Strengths. One of SONY’s most potent strength is that they are one of the world’s best known brands. As they have been in the business for 62 years now, the experience that they have in manufacturing cannot be overemphasised. They already have built a solid reputation for being a dependable electronics brand. Additionally, they have the strength of being diverse with respect to their product lines, having taken in many companies in the different aspects on electronics production. These subsidiaries are: Sony Electronics, Sony Computer, Entertainment, Sony Ericsson (50%), Sony Pictures Entertainment, Sony BMG (50%), Sony Marketing, Sony Life, Sony Assurance, Sony Bank. The wide range of subsidiaries give the clients a wide range of choices within the SONY corporation. Furthermore, the company is not limited to electronic products, though this is their major product line, they also venture to other fields such as the entertainment industry, and the insurance and banking industry. They are also known to be supportive of societal causes, particularly education. SONY has been known to have invested in many foundations and scholarships that bear its name. Traditionally SONY's international operations were a source of that allowed the company to maintain its position as the one of the largest electronic conglomerates in the world and to respond to other company's competitive moves. During the worst years of the Japanese bubble economy in 1980s, the company invested in the entertainment industry. That move provided the cash that saved the company from falling out such as other companies in Japan, and gave it key products that were essential to stem its competitors' moves while it invested in new product development. Today, and even if its western operations still represent the bulk of SONY's total operations and world assets, its foreign operations still make substantial contributions to the company's strong performance and leadership in the industry.

Weaknesses. The company's organisational structure has become inefficient as the company became more complex. This hindered SONY's ability to manage its international network of subsidiaries, branches, and companies. Additionally, there are a lot of speculations over the likely performance of SONY in the future, as the company’s financing section is swamped down by hefty outstanding debts. The firm is not in risk of bankruptcy, but the SONY management is in a tight spot, and has to be extremely vigilant to not make it any tighter. There is also a notable management issues within the company, with the ousting of former CEO Nobuyuki Idei, replaced by Howard Stringer in the SONY helm. Moreover, due to the dependence of SONY to its former glory and accomplishments, it has remained stuck in its place. Many companies have taken over its spot due to its inability to come up with more innovative products. Also, due to indecisiveness, it is now forced to copy the LCD technology from...
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