Organizational Analysis of Sony

This document provides a detailed analysis of Sony Corporation, including its organizational culture, marketing scenario, SWOT analysis, and analysis of Porter's five forces. It also discusses Sony's supply chain, ethics, competitors, and corporate social responsibility.

Running head: ORGANIZATIONAL ANALYSIS OF SONY
Organizational analysis of Sony
Name of the Student
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ORGANIZATIONAL ANALYSIS OF SONY
Table of Contents
Introduction:...............................................................................................................................2
Organizational culture of Sony Corporation:.............................................................................2
Marketing scenario analysis of Sony Corporation:....................................................................3
SWOT analysis:.........................................................................................................................3
Analysis of Porters five forces:..................................................................................................5
Organizational culture of Sony:.................................................................................................6
Supply Chain of Sony:...............................................................................................................6
Ethics:.........................................................................................................................................7
Competitors of Sony:.................................................................................................................8
Corporate Social responsibility:.................................................................................................8
Recommendation:......................................................................................................................9
Conclusion:................................................................................................................................9
Reference list:...........................................................................................................................10

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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 culture of Sony Corporation:
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).

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Marketing scenario analysis of Sony Corporation:
SWOT analysis:
Strength-
Product differentiation- The product mix of Sony comprise of several other products
that is targeted towards different segments of market. Sony sells a range of products such as
DVD players, televisions, computers, digital cameras, video game systems, lithium devices
and memory devices.
Innovation- Sony has a rich heritage of technical expertise and is well synonymous
with technological excellence. One of the latest innovations of company is a crystal LED
television and development of magnetic rerecording tape, which are being served as video
play back of high definition.
Strong brand-Sony Corporation is considered as one of the strongest market that helps
in offering customers with new products. In addition to this, the diversified business of
company also contributes to development of brand strength. The stability of business of Sony
is improved and the market-based risks is limited due to the diversification ((Dhillon & Gupta
2015).
Quality- The products of Sony mainly television are marketed as the high quality
product and the company implements a quality control program for monitoring the responds
of customers to toward its services and products.
Weakness:
Database and network vulnerability- Sony is experiencing an increasing vulnerability
to the database and its network because of increasing reliability on the online services. This is

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considered a weakness because in terms of security of data, this is a growing concern for
business and customers.
Media production cost- The pricing strategy of company is affected by high media
production cost particularly in business of television. For eight years in a row, an equivalent
value of $ 6.3 billion is lost by the television business of Sony.
Loosing core competency- There is a shift in focus away from core competency of
making electronic products for customers due to diversification in many business segments.
This in turn has resulted in distortion of brand. Therefore, Sony should not focus on so many
products and confined itself to building competency by focusing on its core products.
Opportunities:
Rapid innovation- The competitive advantage of company can be boosted due to
rapid innovation. Innovation of the products would provide competitive edge because of high
level of competition in the industry.
New product development- For generating new streams of income and increasing the
revenue, the opportunities of Sony lies in the development of new product.
Threat:
In terms of maintaining profitability, Sony is facing the challenge associated with
piracy of Software. The revenue from the gaming and related product of Sony can be
decreased due to imitation. Therefore, for Sony, it is essential to develop solutions for
protecting its software products.
One of the main concerns for business of Sony is increasing competition in the
industry because of aggressiveness of firm’s worldwide (Watson et al., 2018). It also faces

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competition in terms of price such as LG and Samsung who are gaining customer
attractiveness with lower cost product.
Analysis of Porters five forces:
Suppliers bargaining power:
The low to moderate bargaining power is attributable to high financial clout that helps
in bringing high level of control over the suppliers. Sony can easily switch to other suppliers,
which are why they have low to moderate bargaining power. There are some rules set by
Sony, which the supplier should adhere to for ensuring a transparent and accountable supply
chain.
Buyers bargaining power:
There has been increase in the bargaining power of buyers in the twentieth century.
With improvement in competitiveness of product and increasing focus on quality and
innovation and in such scenario, the fight amongst customers has grown intense and the
switching cost does not act as barrier. Availability of shopping choice is another factor that
has led to increase in barging power (Nakamura, 2016).
Threat of substitutes:
For the product of Sony, the number of product is limited and there is an increase in
level of threat. The threat to substitutes is also limited because of low level of differentiation,
quality of products and brand image. Moreover, the utility and popularity for some product
results in moderate level of threat.
New entrant threat:

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Sony faces low level of threat of new entrants because of capital-intensive nature of
company. An organization seeking to grow into a competitive brand requires large
investment and is a costly affair. Any new firm would have to spend considerably on
marketing due to high level of competitive threat.
Competition among rivalry:
The electronic industry faces a high level of competition with Sony enjoying greatest
competitive advantage because of various factors. Such factors include quality, innovation,
financial clout, low prices and control over suppliers (Strypa and Didukh, 2017). From the
analysis, it can be inferred that Sony faces aggressive rivalry in the highly competitive market
and is not threatened by the new players and has based its business on brand equity.
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

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human rights, labour conditions, environmental protection and health and safety (Rita et
al., 2018). 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
(Watson et al., 2018).
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 (Vogel, 2016). The Legal and compliance department of Sony
does such assessment.

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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 that is consumer appliances and laptop and peripherals. The
competitors of Sony in consumer appliances are Panasonic, Samsung, LG electronics, Nokia,
HTC, Motorola Micromax and Philips. The competitors of Sony in consumer in peripherals
and laptop are Apple and Dell (Sarrafzadeh et al., 2019).
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,

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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 (Sarrafzadeh
et al., 2019). The long-term reliability and the quality of secured products should be
improved.
Conclusion:
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.

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Reference 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.

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