Strategic Management of Sony organization : Report

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Strategic Management- 21
Executive SummaryIn order to develop and grow the business within market it is essential for firm to carryout both internal and external analysis. However, globalization is the best factor that helpsorganization in creating a wide impact upon the growth and development of enterprise. Forinstance, by adopting market penetration strategy it is useful for Sony Corporation to expand itsbusiness globally. Further, carrying out hybrid marketing strategy in order to implement marketpenetration helps in focusing on attaining high market share and profitability. In the currentconsultant report it analyzes that Sony organization needs to evaluate its business and corporatestrategy so that its stakeholders can be satisfied. Further, evaluating the best strategic optionshelps firm to achieve organizational goals.2
Table of ContentsINTRODUCTION...........................................................................................................................5CHOICE OF CORPORATE STRATEGY......................................................................................5CHOICE OF BUSINESS STRATEGY...........................................................................................8EVALUATION OF THE STRATEGY...........................................................................................9CONCLUSION AND RECOMMENDATIONS.........................................................................12REFERENCES..............................................................................................................................13Appendix 1.....................................................................................................................................15INTRODUCTION...........................................................................................................................1INDUSTRY ANALYSIS................................................................................................................1Strategic analysis of Sony Corporation..................................................................................2COMPANY ANALYSIS.................................................................................................................3External analysis.....................................................................................................................3Competitive analysis.............................................................................................................4Internal analysis......................................................................................................................6Core competencies..................................................................................................................6Value chain analysis...............................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9.......................................................................................................................................................103
Illustration IndexIllustration 1: Ansoff matrix............................................................................................................7Illustration 2: Strategic planning......................................................................................................2Illustration 3: Porter 5 Force analysis..............................................................................................5Illustration 4: Value chain analysis.................................................................................................74
INTRODUCTIONIn the present consultant study, it provides recommendations regarding the business andcorporate strategy undertaken by Sony Mobile Corporation within UK. Furthermore, it also helpsin providing an evaluation of the recommended strategies through examining their suitabilityagainst the market trends in the industry, acceptance by the stakeholders and feasibility in termsof having proper competitive advantage (Cavusgil, 2009). Also, it can be stated that it is crucialfor businesses to determine its growth and development factor so that they can attain requiredorganizational goals and objectives. Sony possesses innovative technology and best features thathelp in developing effective position of firm in the marketplace. Further, business operates inworldwide market and undertakes market penetration business strategy in order to increase salesand gain favorable results (Davidson, 2012).This study is based on a previous study done by the scholar in order to examine theattractiveness of Sony Corporation in the market and the distinctiveness of Sony business in theparticular industry. However, as per the previous analysis of mobile phone industry in the UK, ithas been stated that company possesses high threat of substitutes, suppliers and new entrants.While, on the other hand, threat of rivalry and bargaining power of buyers are also high. Also, itcan be stated that threat of new entrants is low in the electronic segment as it requires highinvestment and brand image in the market (Gelder, 2003). Meantime, it is very beneficial forbusinesses which are already carrying out its business from long time within the industry.Additionally, assessing Sony's core competencies and analyzing them through VRIN frameworkidentify about the competitive edge that company possesses. However, there are varied otherrivals clenching similar competitive advantage. Therefore, it has assessed that Sony is not havinga distinctive image in the market. This study involves other options for the further developmentof Sony Corporation at both the corporate and business level. After that, it will focus onevaluating as well as justifying the same (Gregory, 2010).CHOICE OF CORPORATE STRATEGYThis particular section helps in examining the strategic options available on the corporatelevel through determining different choices of products and markets for Sony Corporation inorder to enter or exit within the market. In the current scenario, Sony operates its business inmanufacturing of electronic and professional products in order to achieve organizational goals5
effectively and efficiently. Strategy can be defined as the long term direction of an organization.On the other hand, at corporate level, strategy developed is concerned with the overall purposeand scope of business and how it helps in adding value to the business units (Heinecke, 2011). Itcan be evaluated that at corporate level, it is essential for business to possess options in order toincrease its diversity in relation of two axes i.e. enhancing originality of products and services orincreasing originality of market or both in order to attain desired goals effectively. Here, Ansoffmatrix can be implemented in order to determine corporate strategic direction that involvesmarket penetration, market development, product development and conglomerate diversification(Desouza and Awazu, 2005).Furthermore, it can be evaluated that product development is the best way through whichfirm can deliver new or modified product in the existing market. For instance, Sony launches itsX series in the market in order to gain attention of consumers. While, market development statesthat business aims to provide current product line into a new market. However, main aim ofmarket development is to help in attracting a new customer segment by adopting slightlydifferent strategy in order to enhance the market share. For instance, Sony could develop itsrange of phones for using it in army (Griffin, 2002). Moreover, diversification states that it is thestrategy that entails offering a new product into a new market and it is often used at the timewhen market is saturated and profits are limited. However, such type of strategy is used bybusiness at the time when they are entering into a completely new market and wants to achievedesired results. For instance, Sony moves from manufacturing and selling electronic products toproducing medical equipment for hospitals and care homes (Snyman and Kruger, 2004).At the end, market penetration stands for improving Sony's share in the existing marketby using available products. Through analyzing UK electronic industry, it has been assessed thatindustry is very much attractive for businesses which are already established and have theirpresence in market. Thus, it puts market development and diversification into the less favorablecorporate strategic options because here, business enterprise starts its operations into differentmarket (Vinzant and Vinzant, 2000). Further, Sony's current strategic capability is that they areable to provide the best mobile phones to its consumers and attain competitive advantage. On theother hand, as per the value chain tool, business is also not suitable to master new technologyand processes from which they are not familiar. Hence, it can be evaluated that if Sony adopts6
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