Evaluation of Strategic Position of Sony

This presentation evaluates the strategic position of Sony using Ansoff Matrix and VRIO analysis. It discusses the growth strategies adopted by Sony, such as market penetration, product development, market development, and diversification. It also analyzes Sony's strategic capabilities and conducts a SWOT analysis to determine its strengths, weaknesses, opportunities, and threats. The presentation concludes with recommendations for Sony to improve its strategic position.

EVALUATION OF
STRATEGIC POSITION OF
SONY
Essay

Growth strategy adopted by Sony
From the evaluation of Case Study of Sony,
the strategic position of company has
determined.
Understand with the help of Ansoff Matrix.
Contain four strategies:
Market penetration
Product development
Market development
Diversification

Conti....
Sony has adopted market penetration
strategy.
It has given strategic position of company in
terms of
Internationalization of business
Promote products in Hollywood.

Conti...
In context of product development strategy,
Sony has attained strategic position in terms
of
Bring Playstation for children.
Develop wide range of product portfolio.
Take steps in the industry of entertainement.

Conti...
Market development was another strategy to
attain strategic position.
Expanding business in emerging markets
Change the way of television business

Conti...
Diversification has followed by Sony to
achieve strategic positioning in terms of
Digital imaging
Games
Mobile Phones
Medical business

Conti...
The reason of using Ansoff matrix to
determine the strategic positioning of Sony is
to explain the tactics that have been used by
the company to deal with the market
complexities.
Along with this, it has shown how the product
portfolio has widen up with the time.

Strategic Capability of Sony
VRIO analysis for Sony
Valuable
Company offers high range of product
differentiation to its consumers
Price of products are comparatively high due
to high production cost

Conti....
Rare
Offers considerable product variety to its
consumers
Company is facing high competition from
Japanese rivals
Products are competitive and quality
ascertained
Brand loyalty is high

Conti...
Costly to imitate
The cost of production for the business is
high
Major competitors such as Panasonic, LG and
Samsung creating low market growth aspects
Diversification is a significant strategy
adopted by the firm

Conti...
Organized to capture value
Brand loyalty provide high market advantage
Quality products ensures high brand
following

SWOT analysis of Sony to determine strategic
position
Strengths
Strong brand image
Good product diversification
Wide range of innovative products list with
excellent customer services
Unique product designs with high quality.
Globally recognized brand
Good after sales services

Conti...
Weaknesses:
Too much high prices
Not very much diversification in products like its
competitors .
Less effective promotional activities
Due to adopt diversification, firm shifted from its
core competency which results in a distortion in
brand.
Decrease in stock prices
Decline in profit levels from the last few years
because decreasing of sales.

Conti...
Opportunities
 As a multinational company so can easily expand business in
future.
 Emerging global market
 Lead the gaming industry because there is only one rival
 Adopting cost efficient technology to reduce high cost of
production of goods.
 After ending of joint venture with Ericson, it become an
opportunity for firm to act independently to get growth in
Smartphone and tablet market.
 Opportunity to enter into the health care market by
acquisition of a 30% stake in Olympus.

Conti....
Threats:
High price competition with various competitors such
as LG, Samsung etc.
Threats from hackers to hacked the Play station
network.
New coming brands.
Threats from substitute products offer by its
competitors.
Low diversified portfolio will decrease the profit level.
Increase cost of raw materials and economic
downturn reduce spending power of customers.

Conclusion
Strong brand image and good product portfolio.
But not able to gain sustainable competitive
advantage.
Reason is high cost of production, ineffective
strategic alliance, high market competition etc.
This make the strategic position of Sony
weaken.
Leads to increase threat for company from
other competitors.

Recommendation
Needs to adopt cost effective strategy to gain
strategic position.
Significant diversification in product range
will help the company to gain competitive
advantage.
Results in decrease the overall cost of the
production and gain competitive advantages.
Focus on niche market needs such as low
price products categories for young people
may help in attaining high market share.

THANK YOU