Analysis of Sony Corporation

This presentation provides an analysis of Sony Corporation, including its organizational structure, SWOT analysis, Porter's Five Forces analysis, organizational culture, supply chain, ethics, competitors, corporate social responsibility, and recommendations.

BUSINESS ORGANIZATION
ANALYSIS OF SONY
CORPORATION

INTRODUCTION
 The presentation summarizes the research and results
of analysis of organization. Organizational analysis of
Sony is conducted by performing internal and
external analysis.
 The marketing analysing the organization internally is
done by employing the model of SWOT, explaining
the culture of organization for customer satisfaction.
 External assessment is done by analysing the
company using employing Porters five forces.

ORGANIZATIONAL STRUCTURE OF SONY:
Function based group-
 It involves the business function of Sony such as
research and development, which has the objective of
supporting the functional effectiveness and efficiency
(Dhillon & Gupta, 2015).
 The function-based group involves CEO, R & D,
Finance, engineering, legal and compliance logistics,
human resources and sales and marketing.

Geographic divisions
 This structural characteristic has least significance
in the organizational structure of Sony. The
objective of this division is to plan, finance and
strategise decision-making.
 The geographic divisions of Sony comprises of
US, Japan, Asia-pacific, Europe, China and other
areas.

Business type division
 A division based on the type of product and
type of business is maintained in this
organizational structure.
 The focus of company is on the main segments
that is device, games, music and pictures. Some
of the segments include business of storage
media, picture business, energy business,
business of mobile communication and sound
and home entertainment business (Rita et al.,
2018).

SWOT ANALYSIS OF SONY
Strength
Product differentiation
Innovation
Quality
Brand strength
Weakness
 Database and network
vulnerability
Media cost production
Loosing focus on core competency
Opportunities
Rapid innovation
Product development
Threat
Software piracy
Competition

ANALYSIS OF PORTERS
FIVE FORCES
 Bargaining power of suppliers- Increased bargaining
power
 Bargaining power of buyers- Low to moderate
 Competition amongst rivalry- High level of
competition (Sony.co.in, 2019)
 Substitute threat- Higher level of threat
 New entrant’s threat- Low threat

ORGANIZATIONAL
CULTURE OF SONY
 The satisfaction of customers is put at the core of the
organizational culture of Sony.
 The mission of Sony is to apply the technology for the
benefits of public and provide them with joy of advancing.
 Effectiveness of workers is maximized through the
organizational culture that helps in satisfying the
preferences and expectations of customers (Betz, 2016).
 There are three pillars of culture of Sony. Those pillars
include reliable, cordial and credible.

SUPPLY CHAIN OF SONY:
Sony recognizes the increasing importance of managing the
supply chain by taking a variety of steps that contributes
to structuring a valuable supply chain.
 Possessing its own electronics manufacturing facilities in
different countries where it operates.
 The transactions with the part suppliers are done
according to the geographical area.
 Sony works with the suppliers for addressing the issues in
its supply chain such as human rights, labour conditions,
environmental protection and health and safety.
 The supply chain of Sony is constructed for ensuring
compliance with the code of conduct.

 Any violations of policy in the supply chain are
addressed via the operations of the supplier
hotlines for complaints.
 Issues within the supply chain are responded by
engagement of employees that helps in boosting
the capacity and attention of Sony.

ETHICS:
 The global compliance and ethics program supports the
ethical business culture at Sony.
 The compliance network of Sony is designed to
provide frequent messaging and training to employees,
compliance, and ethics.
 Unethical behaviour is detected and prevented by
conducting comprehensive assessment of risks and
implementing the procedures and policies of internal
control. The Legal and compliance department of Sony
does such assessment.

COMPETITORS OF SONY:
Sony enjoys a competitive advantage due to its high
technology products and an incredible rise in the field of
electronic resulting from innovation. They differentiate
themselves in terms of innovation and imagination.
Some of the general competitors of Sony can be
categorized into two parts.
The competitors of Sony in consumer appliances are
 Panasonic
 Samsung
 LG electronics
 Nokia
 HTC

 Motorola
 MIcromax
 Philips
The competitors of Sony in consumer in peripherals
and laptop are
 Apple
 Dell

CORPORATE SOCIAL RESPONSIBILITY:
 The corporate social responsibility and strategic
philanthropy is well aligned that helps in reflecting the key
business and focuses on distinct areas such as arts, education
and outreach of community.
 The commitment of Sony towards responsible and ethical
business practices are reflected in the CSR initiatives taken.
 The philanthropy spirit and notion of corporate citizen is
reflected in the culture of Sony.
 Some of the initiatives of CSR include assisting
disadvantages youths, education, and improving
environment, supporting culture and arts, employee
volunteerism and providing support in event of disasters
(Nakamura, 2016).

RECOMMENDATION:
The overall performance of Sony is strong and it
enjoys competitive advantage in the electronic
market.
 Sony should intend to improve the quality of
products in the initial stage of design process.
 The design process should comply with the ethical
standards.
 Customers should be provided with reliable
products while placing safety as its top priority.
 The long-term reliability and the quality of secured
products should be improved.

CONCLUSION
Some of the findings from the overall organizational analysis
of Sony are listed below:
 Sony enjoys competitive advantage in the electronic market
because of its brand image, product quality and innovation.
 Sony can take the advantage of opportunities for providing
competitors with cutting edge because of its rapid
innovation and development of new product.
 The overall financial position of Sony is favourable and
investors are earning increasing returns on their investment.
 Furthermore, it is required by Sony to increase its
competitiveness by implementing measures. They should
place emphasis on competitive rivalry and the bargaining
power of buyer that has been identified as major threat.

REFERENCES LIST
Betz, F., 2016. Strategic thinking: A comprehensive guide. Emerald Group Publishing
Limited.
Dhillon, I., & Gupta, S. (2015). Organizational Restructuring and Collaborative
Creativity: The Case of Microsoft and Sony. IUP Journal of Business Strategy, 12(1).
Nakamura, Y. (2016). Analysis of the Relationship between CSR Activity and Purchase
Motivation. Industrial Engineering & Management Systems, 15(3), 251-258.
Rita, M. R., Priyanto, S. H., Andadari, R. K., &Haryanto, J. O. (2018). How
entrepreneurs anticipate the future market: An initial approach of a future market
anticipation model for small businesses. Journal of Small Business Strategy, 28(1), 49-
65.
Sarrafzadeh, M., Mortazavi, J. B., Li, X., & Chu, K. C. (2019). U.S. Patent Application
No. 10/201,746.
Sony India | Latest Technology & News | Electronics | Entertainment | Sony IN.
(2019). Sony.co.in. Retrieved 19 March 2019, from https://www.sony.co.in/
Strypa, N. and Didukh, O., 2017, December. Virtual organization as an innovative form
of business management. In Litteris et Artibus: матеріали (pp. 350-351). Видавництво
Львівської політехніки.
Vogel, E.F., 2016. 11 A framework of global strategic planning. The Strategic Planning
Process: Understanding Strategy in Global Markets, p.361.
Watson IV, G. F., Weaven, S., Perkins, H., Sardana, D., &Palmatier, R. W. (2018).
International market entry strategies: Relational, digital, and hybrid approaches. Journal
of International Marketing, 26(1), 30-60.