Sony Mobile Communications Strategic Planning Process and Formulation

This presentation discusses the strategic planning process and formulation of Sony Mobile Communications, including its vision, mission, objectives, planning techniques, stakeholder analysis, environmental audit, and organizational audit. It also presents a new strategy framework for the company.

SONY MOBILE COMMUNICATION
STRATEGIC PLANNING PROCESS AND
FORMULATION

INTRODUCTION
Business strategy includes seeking a position in an industry or environment that produces a
sustainable competitive edge. The business strategy of Sony Mobile Communications shows
firm’s differentiation attributes in terms of main competencies and core values. Here, the
following presentation is inculcating about strategic contexts of company comprising mission,
vision, objectives, several planning techniques, key issues involves in planning strategically,
stakeholder analysis, environmental audit, organizational audit and at the end a new strategy
framework is being illustrated.

Strategic terminology and context for Sony
Mobile Communications
 Vision – It defined vigorous and fascinating outlook for the corporation in coming period.
The vision of company is to become the brand of communication entertainment. This is
achieve by firm through inspiring more to not communicate only but use mobile apps, like
imaging, games and entertainment.
 Mission – It is a function or commitment that an organization desires for satisfying
stakeholders expectations. The mission of Sony is to be an organization that fulfils and
inspires curiosity of people (Kokemuller, 2015).

CONTD.
Objectives: The long term objective of Sony mobile communications is to attain zero carbon
by the year 2050 as well as to become the biggest supplier in electronic industry. Due to this,
the organization maintain its main market segment by creating ground breaking services,
technologies and products (Kisilu, 2015). Additionally, some short term goals are set by
company in line with long term objectives:
To strengthen core areas of business in the market
To expand business in developing market
Target to redevelop the segment of television to ever changing plus growing technology
market
Accelerating innovative and developing new business
Optimizing resources and realizing business portfolio

CONTD.
Core competencies:
 Capacity to develop products with high quality standards
 Strong capabilities of research and development
 Innovative and smart designs that can be target to multiple segments

Issues involved in strategic planning for Sony
Mobile Communications
There are two main issues comprised in Sony’s strategic planning, such as:
Less response to changes in customers preferences – At some level, Sony mobile
communications cannot cope up with altering demands of the market, for instance gaming
market. It influences them in a manner that they missed the chances to gain through first
mover benefit.
Ineffective structure of manufacturing – The organization failed to execute effectively, the
Kaizen TQC at worldwide locations hence ineffectiveness of manufacturing system at such
locations cannot ensure production of good quality products at places other than current
network, thus the string brand identity or name reduce reputation and under damages that also
reduce competition position of business in the marketplace (Pirraglia, 2014).

DIFFERENT PLANNING TECHNIQUES
The procedure of strategic planning is a long term approach with which Sony Mobile
Communications is able to allocate effectively its resources to grab market opportunities
(Richardson, 2010). The levels of strategic planning in Sony can be defined as:
Corporate level – Sony Mobile Communications
Business level – Sony mobiles, Sony music, Sony electronics
Functional level – Finance department, HRM department, Sales department

CONTD.
On the basis of process objective, the planning techniques are separated into two wide
segments, i.e. whether to make a choice and assess the situation:
Techniques of assessing situation includes PESTLE, SWOT, Stakeholders, Competitors and
Gaps plus Need analysis
Techniques to make choice involves time budgeting, rank proposal, money value and impact
analysis

Sony Mobile Communications Organizational
audit
The organizational audit can be performed by conducting SWOT analysis:
Strengths
 Strong position in fast growing and developing economies;
 Well developed corporate brand identity;
 Culture of top quality and innovation;
 Good investment in R&D throughout the world (Aaker and McLoughlin, 2009).
Weaknesses
 Substantial delay in respond to shift of demand;
 Consumer and production facility are at long distance.

CONTD.
Opportunities
 Joint venture options by making strategic acquisition to manufacture other commodity
lines, such as LCD and TFT screens;
 Estimated growth in the market of consumer electronic and more demand for superior
quality products.
Threats
Rising quantity of duplicate and forged commodities in the market;
Negative influence of atmospheric compliance on returns (Chang, 2005).

Sony Mobile Communications Environmental
Audit
Environmental factors with which Sony Mobile Communications are influenced can be
evaluated by PESTLE analysis:
Political factors – It stand positive for the organization, as because of market deregulation like
other cell phone firms, Sony also enjoys to undertake independent business activities in every
nation where it operates.
Economical factors – The increasing in disposable income and rising young population
demands availability of huge choices to the customers. People are demanding more features in
a cell phone at less price. Also, an issue of instability further produce a huge back draw.
Social factors – Japan, the biggest market if Sony is witnessing increasing number of old age
population that can affect changes preference and tastes of customers. Sony Mobile
Communications should consider changes of consumers lifestyle during the product
development (Wootton, 2015).

CONTD.
Technological factors – Sony is operating its business activities in technological environment,
hence using updated and novel technology is important for the corporation.
Legal factors – Sony mobile communications is offering unique designs with smart features
but people choose other phones because of its bad reviews.
Environmental factors – Every product of Sony have worldwide declaration, which tales
initiative to provide solutions that enable individual to recycle commodities in an environment
friendly manner (Osterwalder and Pigneur, 2010).

Stakeholder analysis significance
There are two types of stakeholders exist in all big corporations. These are:
Primary Stakeholders - that directly influences business activities and include
 customers,
 suppliers,
 shareholders and
 employees.
Secondary stakeholders – that indirectly influence the procedures of company and include
 media and
 government.

CONTD.
The analysis of stakeholder is very essential for the organization, as it define the most
important and affected stakeholders group by business performances. Also, the analysis define
the way in which stakeholders must be treated as well as approached.
Furthermore, the analysis offer framework to support a firm in developing strategies for
reducing their risk and optimizing support. Also, it can determine influential sources and
conflict of interest (Wonglimpiyarat, 2005).
Moreover, in the present business scenario, whole world is becoming a small market for
business organizations that bring possibilities of raising stakeholders numbers to be influenced
by or have impact on strategic development plus implementation.

CONTD.
Now it is very much difficult to sustain relations and there is an increasing need for
transparency in dealings of business. Companies are required to be accountable for their acts
as well as are force to display corporate social responsibility. Through the stakeholder analysis,
an organization receive chances of exploring huge stakeholder network and put outcomes into
context (Kisilu, 2014).

New strategy for Sony Mobile
Communications
The organization can implement following three wide strategic approaches to attain and
sustain growth. These are:
Growing core business activities
Developing by customers sub-segmentation
Progress by adjacent opportunities

CONTD.
 New product development – To beat existing rivalries, the
organization should invest its resources and capital in new fields
that can bring more profits like entertainment products, camera
sensors and video games.
 Diversifications – The company should follow related
diversification strategy to get economies of scale into different
markets by concentrating on main competencies (Bayus, Kim and
Shocker, 2000).

REFERENCES
Kokemuller, N., 2015. Importance of Stakeholder Analysis in Management Plans. [Online]. Available
through: <http://smallbusiness.chron.com/importance-stakeholder-analysis-management-plans-
61850.html>. [Accessed on 24 August 2015].
Kisilu, A., 2015. Strategic Planning for Sony Corporation. GRIN Verlag.
Pirraglia, W., 2014. Planning Techniques for Business. [Online]. Available through:
<http://smallbusiness.chron.com/planning-techniques-business-2545.html>. [Accessed on 13 June 2015].
Richardson, P., 2010. The importance of stakeholder analysis in strategy development. [Online].
Available through: <http://www.sunzu.com/articles/the-importance-of-stakeholder-analysis-in-strategy-
development-146409/>. [Accessed on 12 June 2015].
Aaker, D. A. and McLoughlin, D., 2009. Strategic market management: global perspectives. John Wiley
& Sons.
Chang, F. J., 2005. Business Process Management Systems: Strategy and Implementation. CRC Press.

CONTD
Wootton, N., 2015. Keys to Successful Strategy Implementation. [Online]. Available through:
<http://www.csae.com/Resources/Articles-Tools/View/ArticleId/222/Keys-to-Successful-
Strategy-Implementation>. [Accessed on 12 June 2015].
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Wonglimpiyarat, J., 2005. Standard competition: Is collaborative strategy necessary in shaping
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Kisilu, A., 2014. Strategic Planning for Sony Corporation.
Bayus, B. L., Kim, N. and Shocker, A. D., 2000. Growth models for multiproduct interactions:
Current status and new directions (pp. 141-163). Kluwer Academic Publishers, Boston,
Massachusetts.

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