Analysis of the New Market

This article analyzes the new market for Sony's expansion in the UK marketplace, including trends, PESTEL analysis, and Ansoff's Grid.

Principles of marketing
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Table of Contents
Analysis of the New Market............................................................................................................4
Trends..........................................................................................................................................4
PESTEL analysis.........................................................................................................................5
Ansoff’s Grid..............................................................................................................................6
REFERENCES................................................................................................................................9
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Analysis of the New Market
For an organisation it is very much important to expand their business to gain
profitability and sustainability in marketplace with innovation (Balmer and Burghausen, 2019).
In context of Sony which is a Japanese multinational conglomerate corporation that expand in
the UK market place by using their existing product that is Sony PlayStation. They have
diversified business activities such as professional electronics, gaming, entertainment and
financial services. They come up with the new product which is Sony play station which is the
ultimate home entertainment centre whether it is gaming, HD movies, music, television and
many more. So it is important for them to analyse the new market before entering into it such as
trends in market, external business environment and strategies to expand in specified sphere.
Trends
 The consumer electronics market grown massively in the whole world majorly in the UK
market place and it is constantly developing, as products and their features launch almost
every day. Trends in context of consumers as they always buy the advance tools and
technology to embrace digitalization and social media. In that regards the role of
organisations is to make use of social media analytics to drive success and marketing
strategies to reach at potential consumers (French and Gordon, 2019). In context of Sony
that are great name in the whole world aimed to expand with Sony PlayStation in the UK
marketplace so it is necessary for them to work strategically and analytically for smooth-
en business operations.
 Over the last few years the consumer electronic market in the UK has evolved very
rapidly with the development of smartphones including the 4G models, games consoles
and tablets (Horton, 2019). In addition the new trends in respective market are
wearables, fitness tracking devices and range of various TV streaming gadgets. So it is
predicted that in UK in near future market will see most technological role outs such as in
car computer systems, robots and drones. So it is very important for Sony to enlarge
business opportunities in respective market place.
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 As per the UK trade and investment reports, UK is one of the largest market in Europe as
the most high end consumer electronics products producing by approximately 18000
companies. The level of competition in global market is massive so it is essential to keep
oneself with the trends by considering consumers needs and wants.
 People who buying consumer electronics are majorly active on the forums, blogs and
social networking sights, so it is suggestion for companies that planned to operate in
respective marketplace keep up with conversation in respective areas (Kiráľová, 2019).
So it is very much potential for Sony to evaluate respective trends before enlarge
opportunities in the UK marketplace.
PESTEL analysis
Analysis of macro environment is very much potential for organisation to scan the
components of strategic management. In context of Sony they aimed to expand in the UK
marketplace by using their product Sony PlayStation so PESTEL analysis of UK are as follows:
Political factors The UK government taking measures to eliminate the
negative effects of deteriorating economy by including the
mix of monetary and fiscal initiatives (Laczniak and
Murphy, 2019). Political stability is the great strength of
country, however Brexit create uncertainties and political
debates in the market place so in context of Sony they can
face the problem in recruiting the highly talented workforce
for their organisation. But on other hand it open doors for
various organisations in UK marketplace for commencing
business activities.
Economic factors The UK market has strong economic position relatively to
the other countries in terms of GDP, diversity and interest
rates. But there are some issues also occurs in respective
industry that needed to evaluate that is current inflation rate
is 1.7% of September 2019 that impact on the business
activities as people due to rise in prices of products not able
to purchase products and services.
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Social factors UK is the big consumer market according to the office for
national statistics the population of UK way 66.4 million in
2018 (Consumer Electronics Market Analysis, 2020). Due to
change in consumer demand and UK come under the top 10
countries perceived have the most educated population in
whole world. So it is the major opportunity in front of Sony
to optimise the opportunities by targeting young people in
market.
Technological factors UK is one of the most technologically advance country in
whole world, businesses are very gradually developing the
new technologies to provide best options for consumers
(Lewnes and Keller, 2019). In the last few years the
consumer electronic market evolved with the advent of 4G
technology, game consoles and tablets. So it is the great
opportunity for the Sony to enlarge opportunities in
respective marketplace by taking their Sony PlayStation.
Environmental factors UK is a strong participant in formulation of policies
specifically in dealing with the environment, emission
reduction and sustainable sources of energy. They forced to
organisations to obey the environmental friendly practices as
they worried about rising Co2. So it is potential for
organisation to use eco friendly way to produce and dispose
of products.
Legal factors The UK possess the great legal system that is organized,
transparent and effective in terms of processes. The
legislative system comply with the freedom of business by
supporting investors trust and confidence level (Ravina
Ripoll and et.al., 2019). They focus on the suitable HR
practices such as equality act, positive working conditions
and sex discrimination in order to gain desirable outcomes
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from companies that operating in UK market.
So from the above analysis it has been evaluated that the market conditions of the UK
marketplace is favourable for Sony. As they are new in marketplace,so it is obligatory for them
to analyse the market and competitors in order to formulate strategies.
Ansoff’s Grid
The Ansoff matrix is also known as the Product/ market expansion grid, is important tool
used to analyse and plan the strategies for obtaining growth. Respective matrix/ grid shows the
four strategies that enables to a firm to grow and evaluate risk association with each strategy.
The major four strategies of Ansoff matrix are as follows:
Market penetration:
In respective strategy of expansion the firm uses its products in existing market by aiming
to enhance the market share (Sahaf, 2019). It can be executed by no. of ways by decreasing
prices to attract existing or new consumer, increasing promotion and distribution efforts and by
acquiring the new competitor of market.
Product development:
In respective expansion strategy the firm develop the new product to satisfy demand of
existing market. To occupy respective strategy requires extensive research and development of
product range. Respective strategy choose by an organisation while they possess the strong
understanding of current market and can be able to provide innovative solutions to remain
competitive in marketplace.
Market development:
In respective market development strategy, the firm enter into the new market by using
existing products. In that regards expanding into new market mean expanding into new
geographies, new consumer segment, new regions (Swanson, 2019). Respective strategy is most
successful while firm owned proprietary technology that helps to leverage into new market. The
another thing is consumers in new market are profitable. It can be done by using no. of ways that
are catering to different customer segment, entering into new domestic market and by entering
into foreign market.
Diversification:
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In respective market development strategy, in which a firm enter into new market by
using the new products. Although respective strategy is most riskiest as both market and product
development is required. There are two kinds of diversification opted by a firm that are related
diversification and unrelated diversification.
From the above discussion, it has been evaluated that choosing market development
strategy plays very much important role in the organisational development and gaining
sustainability in marketplace. In context of Sony which is a well known Japanese brand name in
electronic market, aimed to expand in the UK marketplace by using their existing product Sony
PlayStation to enlarge business opportunities in positive manner (Szablewska and Kubacki,
2019). For that they choose to conduct through research and development to analyse the macro
environment, trends of UK market in consumer electronics and market development strategies in
order to plan properly expansion activities. In context of Sony they by using the market
development strategy in which they enter in UK marketplace place that is new market for them
by using their existing product which is Sony PlayStation. Respective strategy proved beneficial
for organisation as they enter into marketplace by using proprietary technology and consumers
are techno oriented in UK marketplace that enhance their profitability positively. Respective
strategy is most appropriate for Sony as in the whole world game changing technologies are
taking place so it is important to cover the large no. of consumers. Sony is a great brand in
consumer electronics so while they enter in new market by using their existing product, same
helps them to gain excellent response from side of consumers. So it can be said that respective
market development strategy proved very beneficial for them.
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REFERENCES
Books and journals:
Balmer, J.M. and Burghausen, M., 2019. Marketing, the past and corporate heritage. Marketing
Theory. 19(2). pp.217-227.
French, J. and Gordon, R., 2019. Strategic Social Marketing: For Behaviour and Social Change.
SAGE Publications Limited.
Horton, D., 2019. Potatoes: Production, marketing, and programs for developing countries.
CRC Press.
Kiráľová, A., 2019. Sustainable Tourism Marketing Strategy: Competitive Advantage of
Destination. In Sustainable Tourism: Breakthroughs in Research and Practice (pp. 183-
206). IGI Global.
Laczniak, G.R. and Murphy, P.E., 2019. The role of normative marketing ethics. Journal of
Business Research. 95. pp.401-407.
Lewnes, A. and Keller, K., 2019. 10 Principles of Modern Marketing. MIT Sloan Management
Review.
Ravina Ripoll, R. and et.al., 2019. Towards a happy, creative and social higher education
institution: the case of non-profit marketing and business creation subjects at the
University of Cadiz.
Sahaf, M.A., 2019. Strategic marketing: making decisions for strategic advantage. PHI Learning
Pvt. Ltd..
Swanson, S.R., 2019. The defining dozen: undergraduate students preconceived views of
marketing. Marketing Education Review. 29(1). pp.3-16.
Szablewska, N. and Kubacki, K., 2019. A human rights-based approach to the social good in
social marketing. Journal of Business Ethics. 155(3). pp.871-888.
Online:
Consumer Electronics Market Analysis, 2020. [Online]. Available through.
<https://www.cloudinsight.co.uk/consumer-electronics-market-analysis>.
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