Business Strategy for Sony Mobile Corporation

This presentation evaluates the competencies and objectives of Sony Mobile Corporation, analyzes its market performance, and provides recommendations for the future.

BUSINESS STRATEGY
Sony Mobile Corporation
Task 1

Introduction
This presentation has been prepared to evaluate the
competencies and objectives of Sony. Further,
varied models have been applied to identify the
market performance of Sony. Besides this,
recommendations for future are also included in it.

Company Background
Sony is one of the world's leading mobile
companies providing multimedia devices such as
smart phones, accessories and PC card. Being in the
number forth position of world's largest handset
maker, it has an existence in both developed and
developing markets. It is running around in 40
countries and employing over 7500 employees
across the world.

Vision and Mission of Sony
Vision:
A constant focus on broadband network by using the so far strategy
is the only vision of SMC. It wants to hold its position as a world's
largest broadband entertainment company.
Mission
(a) With a never ending passion for technology, SMC has pledged to
create a broad range of innovatory products in multimedia that
motivates and satisfies everyone's desire.
(b) It is continuously heading towards to make an exciting new world
of entertainment.

Goals and Objectives
• To become a leading provider in electronics by
strengthening its core business area in the market
segment of technological products and services.
• One of its long term goals is to achieve zero carbon by
2050.
• Its target is to reconstruct the television segment as per
the growing and ever changing market.
• Expanding its business in the rising markets and to
create new business by speeding innovation.

Strategic Plan
Strategic plan is a long term plan with a
systematic ever going process of guiding
the members of organization for timely
achievement of goals and objectives.

Factors to formulate the strategic
plan
Successful implementation of strategies in SMC majorly involves five
critical factors, including-
Engagement- It refers to staff engagement in which employees from all
levels of the organization participate together to discuss the common
goals of company and make an effective plan to achieve those. In it,
employees of the stated company are being informed by the senior
management about the need of building a strategic plan.
Communication- Employees are themselves responsible for building a
new strategic plan for the organization without any interference of senior
level management. Thus, it starts with a bottom up communication where
on the basis of surveys, and group meetings, employees provide input to
the process. Later, it is followed by top down communication in which
senior level manager shares the finalized plan with the employees.

Cont.
Innovation- SMC is always focused in leading its way through
bringing innovative products in the market. Therefore, in this
step, employees together build strategies for new products and
services as per the latest consumer’s need and demand.
Project Management- After successful completion of making
plans, creating projects to manage strategies and prioritize each
one of them is the next foremost step towards organization's
prosperity and goodwill.
Culture- The last step is of making a proper identification and
understanding of projects in which management is responsible
to ensure proper execution of plans by its employees.

Techniques For Developing Strategic
Plans
 BCG Matrix

BCG Matrix
Star unit determines high market share in a fast growing
industry, representing the best profits and growth opportunities
for the organization. For example- Products of SMC
representing star are its digital camera, play stations and LCD
TV which are generating high revenue and required huge cash
for sustaining their position. It shows that product is in the
growth stage.
Cash cows shows business with a low growth rate and high
market share. Products of SMC in cash cows are smart phones
like Xperia, projectors and memory media. It generates more
than the required cash that can be used by some other units. It
shows the maturity stage of product.

BCG Matrix
Question Mark represents low market share with a fast
growth rate. To grow their market share, large amount of
cash is required in the form of promotional expenses. Sony
music player, smart watches and VAIO computer fall under
this category.
Dog includes products which have both low market share and
low growth rate. They often have less future chances to
establish as a big cash drainer for the company and it does
not generate any profit for the overall business. Hence, it
can be easily sold off. Such SMC products with a decline
stage include Walkman and CD players.

Strategic Positioning of SMC
 SWOT Analysis
Strength
The main strength of Sony is its
innovation, quality, product
differentiation and specialization.
Weakness
Working with multiple functions, high
price of its product and low battery
efficiency fall under this category.
Opportunities
Dealing in international market and
expanding its business in TV category are
the biggest opportunities for it.
Threats
Competitive market with global economic
recession and electronic network security
are major threats for Sony.

Environmental Audit
 PESTLE Analysis
Political and
Legal factors
SMC is a global company, thus work policy and procedure
of it can easily get affected by any change in international
law. Recession can lead to increase the company's trade.
Similarly, It could also get affected by an unstable political
situation of the country. Due to which, SMC should
carefully choose and generate its idea of innovation.
Economic factors
It is an essential factor to analyse the growth covering few
major aspects of unemployment and wages. Recently,
employment shrunk badly affected SMC. It was when the
northern part of Japan was hit by earthquake, affecting its
relationship with the suppliers. As a result, SMC is now
focusing on the replacement of destroyed offices and
maintaining relationship with its suppliers.

Cont.
Social factors
Till now, SMC has built a good reputation by its high
quality services and products. To continue the same,
SMC needs to be well aware of the present market
scenario by having a social involvement about the most
needed things of consumers. It includes having good
communication with people through knowing their
change lifestyle and recent demands.
Technological
factors
Working into technology, SMC should always use an
updated version for being more productive and satisfy
the current consumer’s needs and demands.

PORTER FIVE FORCE ANALYSIS
Threats of new
entry
SMC has low threat of new entry due to the government policies
which act as a barrier for the entry of new company. Secondly, an
electronic company requires major capital investment. Hence, high
scale economy and constant innovation work as another barriers to a
new entrant.
Bargaining power
of buyer
For SMC, bargaining power of buyers is high. It is because of IT
industry which is providing numerous alternative products to the
customers. Thus, if consumers are getting same product at lower
prices, then they will easily switch to it.
Bargaining power
of supplier Sony is a larger entity as compare to its suppliers. Therefore, it has
low bargaining power in the respect of suppliers.
Threat of substitute
product
Sony's wide range of product has no replacement. Due to which, it has
low threat from its substitute products. For other, it's quite hard to
match the quality and innovation of Sony.
Intensity of rivalry
Due to extreme competition in the market, intensity of rivalry is high.
Also, it is more due to high number of equally balanced competitors
in the market, such as Apple, Samsung, LG, etc.

Internal Audit
SMC conducts internal audit to examine and
evaluate the present status of business. It helps in
achieving the organizational goals and objectives
by adopting a systematic and disciplined approach
and evaluating any improvement needed for
operating effective risk management, risk control
and other governing policies.

Roles of SMC stakeholder's group
Shareholders are the financial supporters of company. They allocate finance to
the company by purchasing its shares. Shareholders have certain powers over the
directors such as changing the name of company, removing a director, etc.
However, their main role in SMC is attending meetings conducted to discuss the
agenda of ensuring that directors are not going beyond their powers.
Staff is one of the crucial parts of its corporate foundation. SMC provides a rewarding
and cooperating climate to its employees working across the globe. It recruits employees
from various background and provides them a flexible work atmosphere. They together
conducts training and development programs to enable every individual to increase their
knowledge in the required area. It recognizes the ability of individuals by providing equal
growth opportunity to each.
Customers equally play an important role in expanding business. They help in
determining the current market trend and thus makes it easy to build a new product by
satisfying their needs and demands.

Recommendation for SMC
Product development from Ans off matrix is a
recommended strategy for SMC. This strategy directs
to offer a new product into an existing market. It is the
process wherein SMC can effectively show its
innovation to increase its customer base and brand
awareness. Under this strategy, SMC needs to extend
its products by developing new and various range of
commodities or repackaging the existing products by
improving their quality and services.

References
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Eshun, P. J., 2009. Business incubation as strategy. Business Strategy Series. 10(3). pp.156–166.
Ireland, D. R., Hoskisson, E. R. and Hitt, A. M., 2010. Understanding Business Strategy Concepts
Plus, 3rd ed. Concepts Plus. Cengage Learning.
SONY ERICSSON. 2011. [Online]. Available through: <http://www.ericssonhistory.com/the-
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Sustainability Report. 2011. [PDF]. Available through:
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[Accessed on 23nd February 2016].

Thank You!!