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SONY CASE STUDY

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Sony signifies the name – Sony Group of Corporation is known as a Japanese multinational conglomerate. The headquarter of Sony is situated at Konan, Tokyo, Minato. It is acknowledged as a major technology organization. It is considered as one of the largest manufacturers of professional or domestic electronic goods covering the entire world. The company contains almost 55% market share especially in the market known as image sensor. The company provides latest technology related products including smart TV and of 55 inches. Shuzo Sumi is the chairman of directing boards, Kazuo Matsunaga is the vice chairman of the directing board, Kenichiro Yoshida is the chief executive officer, president and chairman, Shegeki Ishizuka is the vice chairman of the organization. Main products of the organization include – consumer electronics, video games, semiconductors, films, computer hardware, music, robots and telecommunication related equipment. Other services of the organization include – financial services, insurance, credit finance, banking, networking services and advertising agency. The company has not a very stronger connection with the Sumitomo Mitsui Financial Group.  Get sony case study help from our skilled writers today. The company contains its trace back from the end of World War II. The company now enhance the quality of sounds, photography and videography through a joint venture with technology. The following section will mention a proper SWOT and PESTLE analysis of the organization.

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Sony SWOT Analysis

Strengths

  • Global player – researchers have considered the company as a global player. It is providing greatest competition to popular electronic brands present in the United States and Europe. The company is performing as a global player for all the competitors.
  • Variety – the company provides a varied range of products. It is catering to different technological needs of the consumers. The company is providing home appliances, entertainment equipment including smartphones, earphones and other consumer products. It also provides huge financial services to the consumers.
  • Quality – Sony is itself a brand that is acknowledged for its high-quality and easy operating facilities. The company invests a huge amount for the procedure of research and development. They are continuously grabbing the attention of the consumers and try to identify the niche of the potential consumers.
  • Brand recognition – Sony is acknowledged in no time. The very name is a brand that is focused to fulfill all the needs of the consumers. During the year of 2019, the company was ranked as the 39thamong all the 60 valuable companies covering the entire world.
  • Innovation – innovation is an integral part of the organization. The company contains the capacity to compete the highly potential companies including Microsoft and Google. One can easily visualize the innovation in the Trinitron Color TV, VCR, Blu-Ray disc, Crystal LED TV and the compact disc. The company contains a huge variety of products covering the entire field of technology and entertainment.
  • Consumer portfolio – the company contains a strong as well as loyal consumer base. The company invest more on different loyalty programs. They also include different loyalty programs through the play stations and start to switch their competitors according to time.

Weaknesses

  • Dependence solely on electronics goods – the main and only product of the organization is limited within the electronic goods. The company solely depends on TVs, Smartphones and image sensors. Researchers have mentioned that the financial year of 2019 to 2020, the company was observed with almost 57% decline due to the declining demands of the electronic products.
  • Negative publicity – the company was subjected to exposure of different trading secrets to the competitors. The company was hacked during the year of 2014 that led to higher exposure to sensitive issues for other companies. We have a team of experienced assignment experts as well.
  • Expensive – the price of the products is comparatively higher than the common market values. Hence, the company is losing a potential group of consumers with the average income.
  • Lack of marketing initiative – out of utter confidence, the company is neglecting a potential aspect of promoting the name to maintain a strong connection with the existing consumers. Along with this, lack of eye in the marketing procedure, restrict the company from fetching new and potential consumers for future business period.

Opportunities

  • Emerging economies – Sony need to expand the business by targeting the places with the emerging economic facilities.
  • Medical imaging – apart from the sensory imaging, the company can diversify their products in the medical imaging procedure. The industry contains huge opportunities for technological companies like Sony from the year of 2018 to 2025.
  • Acquisition – the company may implement the procedure of acquisition to expand the business. The company need to leverage their financial resources by targeting the lucrative sectors. By the term lucrative sector, the researchers indicated to the industry of software development.

Threats

  • Recession – the company is observed with a devastating recession program. The financial devastation created huge problem for the organization especially during this pandemic situation. The company has faced different hardships due to their expensive products and declining demands from their potential consumer base.
  • Rigid competition – the company is threatened by the existing competition provided by the electronic companies including LG and Samsung.
  • Technology – modern technology and implementation the latest technology in their products often increases the price of the products. The company cannot provide cheaper products as the manufacturing cost is almost highest.
  • Pandemic – the entire world is facing the pandemic situation. Millions of people are losing their jobs and they cannot think about spending their precious money on the luxury goods.
  • Saturated market – there are various alterative products launched during the past decade. Hence, the market has become a saturated place as the company is providing nothing new to the consumers

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Sony PESTLE Analysis

Factors

Analysis

Political

Sony performs in more than one particular country. The stability of the government hampers the performance of the organization. The increasing support of the government to secure the information through technology is providing opportunities to the organization. Along with this, the government is becoming supportive enough to promote online business. Hence, Sony is getting the opportunity to establish a kind of omnipresence within the entire industry. Political instability on the other hand, increases the risks of the organization on the contrary.

Economic

The pandemic situation has introduced different challenges for the organization. The global pandemic situation snatched the earning capabilities of earning for millions of people. Hence, it is a bad time to invest on expensive products providing by the company. Along with this, the political instability within the Asian countries creates economic instability also. On the other hand, researchers have mentioned that the increasing disposable earnings or incomes of millions of people is providing huge opportunities for the organization. It is one of the external factors that aids Sony to increase their revenue according to time.

Social

Social factors refer to the relationship with the consumers with the company. As shown in the SWOT matrix, the company possess a strong consumer base. The sociocultural factor that continuously enhancing the performance of the organization include – the increasing population of online gaming opportunities. Along with this, the company gained a mastery over the distribution of wealth. The company showcase an openness towards notion of leisure. However, a group of people are neglected by the organization. the company targets only the upper class or the people with higher income within the entire consumer world. They only support maintaining a good relationship with the existing consumers.

Technological

Technology is the key aspect that has ensured the success of the organization. The company maintains a higher dependence over the concept of digital technologies. Along with this, the company is observed with not investing much on the procedure of research and development. The digital technologies also help the organization to promote their name through different online platforms. The idea is to promote the name through the procedure of digital marketing. It may or may not include the aspects of artificial intelligence and machine learning. These are the probable technological opportunities prevailing for the organization.

Legal

Legal factors demand from a company to abide by all the legalities present in a particular country. It also includes adherence to the taxation program of different countries covering the entire world. Increasing policies as well as regulations on e-waste that has created different difficulties for the organization. Along with this, the company also need to consider the increasing regulation related to product and maintenance of these products. Sony’s the sensory imaging equipment is associated with producing huge e-waste that has corrupted the networking system. Hence, researchers have suggested to invest more on the procedure of research and development to reduce the issues

Environmental

It is considered as the ecological or environmental factors. The company is well aware about the notion of corporate social responsibility. They prioritize their consumers the most. They try to provide the best quality product to the consumers. However, at the same time the company is criticized for being segregated for one set of consumers. They cannot provide products at a cheaper rate as the manufacturing cost of all the products are higher comparing to the other companies. For example, Samsung provides products that are affordable for consumers from the lower, moderate and higher class consumers.

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