Sony's Digital Business: Strategies, Impact, and Cryptocurrency

This report provides an analysis of Sony's digital business strategies, focusing on key trends, advantages, and the impact of digital technology on its operations. It evaluates new and emerging digital business models employed by Sony, such as the freemium, pyramid, ecosystem, and on-demand models, and addresses the challenges and ethical considerations associated with their implementation. The report further assesses the effect of new collaborative relationships and strategic alliances facilitated by digital technology within Sony, highlighting the benefits of enhanced communication and decision-making. Finally, it explores the impact of cryptocurrency on Sony's digital business, examining both the opportunities and challenges presented by digital currencies. This analysis aims to provide insights into how Sony leverages digital technology to maintain a competitive edge and enhance customer experience in the evolving digital landscape. Desklib provides solved assignments for students.

Individual report of
digital business

EXECUTIVE SUMMARY
With the use of increase in competition it is crucial to make use of digital technology
within business to make it modern business. The report includes the key trends and benefits of
using digital business. The affect of new relation done collaboratively with the use of digital
technology is being evaluated. Also the impact of use of digital currency on the organisations
performing digital businesses is discussed.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK – 1.........................................................................................................................................4
Overview of key direction and advantages..................................................................................4
Advantages of digital technology................................................................................................5
Key trends of digital technology..................................................................................................5
Implications for carrying digital businesses................................................................................6
TASK – 2.........................................................................................................................................7
New and Emerging Digital Business Models..............................................................................7
TASK – 3.........................................................................................................................................8
Assess the effect of new collaborative relationships and strategic alliances through digital
technology in context to selected business unit...........................................................................8
TASK – 4.......................................................................................................................................10
Describe crypto currency with examples...................................................................................10
Impact of Crypto on business....................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals....................................................................................................................12

INTRODUCTION
Digital technology is the source through which traditional business structure is now being
transforming into modern businesses. Adoption of digital technology will help businesses in
surviving them in long run. The use of digital technology in businesses leads to increase in
productivity and efficiency of businesses. This is why now a days most of the business unit are
involved in using digital technology for performing its operations. This report is based on the
organisation named Sony which is making effective use of digital technology through which they
are able to lead market (Akanfe, Valecha and Rao, 2020). This file emphases more on Sony
PlayStation, which is a video gaming product which can be played by internet connectivity. The
company was founded in 1946 by Masaru Ibuka and Akio Morita having its headquarter in
Tokyo, Japan. They have launched its PlayStation in 1994 and have sold around 3.9 million units
of PlayStation 5 which is their latest addition. This report includes the benefits of using digital
technology in their businesses (Tanda, and Schena, 2019). The new business model which
emphases more on use of digital technology along with the issues faced by them due to use of
digital technology. The affect of new relation done collaboratively with the use of digital
technology. Lastly, the impact of use of digital currency on the organisations performing digital
businesses were discussed.
TASK – 1
Overview of key direction and advantages
Digital business is the producer of making use of digital technology within the business
units for the purpose of transforming traditional businesses into modern businesses. With the use
of digital technology, businesses are able to get competitive advantages as the enhancement in
productivity takes place (Boojihawon and Ngoasong, 2018). The products which customers
wants to avail is now available at their door step which is possible because use of digital
technology in the business unit. With this, digital technology easy the way of communication,
now its easy to connective wireless. Sony is being involved in making use of digital technology
within its products to enhance customer experience and also they are able to make a strong
position in market by being creative & innovative.

Advantages of digital technology
The effective use of digital technology makes business grow and get competitive advantages
(Ugray, and Johnson, 2019). Sony is operating its business operations globally and involved in
continuous growth by making use of digital technology. The utmost advantageous of using
digital technology in businesses are as follows -
 Development opportunities – The use of internet services makes business aware about
the changing technological trends which can be pre analysed by organisations. The
business person can purchase courses of digital technology which will helps them in
knowing the digital opportunities which can be implemented by them.
 Social connections – With the help of social media platforms business can connect with
new individuals in order to increase its business operations. Along with it, the social
media platforms can also be used by businesses for making its product and services get
promoted among customers (Rue, Rowlands and Njoku, 2020). They can also make use
of influencer marketing, in which some popular influencers make promotion for company
and delivers companies message to its follows. Effective communication – The easy of communication is possible with the use of
digital technology within business operations. With the use of E- mail marketing they can
connect with customers directly by sending them messages or information regarding the
deals or changes that is being taken place within them (Urbach, and Röglinger, 2019).
The companies are also able to know about customers feedback and issues which is being
faced by them and accordingly they can make changes.
Key trends of digital technology
The technology is being changing rapidly because companies are involved in making
continuous innovation( Chaffey, Edmundson-Bird and Hemphill, 2019). The recent key trends
which can be used by businesses to make its operations run effectively and smoothly are as
follows -
 Artificial Intelligence – The use of artificial intelligence helps businesses in
understanding their taste and preferences. The products or services in which customers is
interested in being showed to them repeatedly (Weill, and Woerner, 2018). This process
is performed by understanding what customer prefers the most and accordingly they were
being pitched. The customer is being interested in playing games then products related to

gamings will be displayed on customers screen on each platform which they will use. All
this mechanism is being possible by the use of Artificial intelligence technology with
businesses.
 Robotics automation process – This is the software which automatically perform the
crucial functions which save lot of time and cost of companies. If the organisation wants
to send e- mails to its customers then they make use of this digital technological tool.
With the help of this tool it is possible to send auto generated mails to its customers along
with the necessary modification. Through this companies can be in touch with its
customers and enhance their experience. Chatbots – The use of chatbots technology is being used in order to provide human
touch facility to customers (Raichenko, Antonov and Lyandau, 2021). The customers can
directly communicate with company through chat. It is a automatisation system through
which customers get auto generated answers of the problem which they are facing. The
customers can able to get immediate answers of their queries which save their time and
make them feel satisfied.
Implications for carrying digital businesses
The digital technology have made easy to deal businesses virtually as it is flexible and
cost saving (Fayyaz, 2018). The small businesses unit are now directly involved bring out its
business at online platform because it requires a small fund for establishing this business. The
advantages Sony is able to get with effective use of digital technology within its business are as
follows -
 Getting Feedbacks – The customers can directly communicate with Sony by the use of
digital technology. The chatbots are the one which helps customers in doing so, they can
ask queries via Chatbots and they will get immediate response of their queries. The
customers can also share suggestions which would be helpful for companies in providing
them services of their choice.
 Conducting meetings – It is not possible to conduct meeting every time, thus Sony have
make use of digital technology which helps them in conducting virtual meetings (Nica,
2021). Sony is able to connect its workforce from anywhere without making any extra
efforts. The vital meetings are being conducted by the help of digital tools which is again
a time saving option.

TASK – 2
New and Emerging Digital Business Models
The innovation leads to change the environment of businesses and its growth regularly.
The use of modern and upgraded technology helps companies in proving competitive edge. The
digital business models helps companies in keeping customer satisfy as their requirements are
pre- evaluated (Gobble, 2018). Thus, all organisations are being involved in making use of
digital business model and attain their goals successfully. The trending emerging digital models
in context to Sony are stated below -
 Freemium model – While using freemium business model, organisations doesn't charge
can additional cost from customers. For fulfilling the basic needs of customers,
companies provide it free of cost. It is a kind of free trial that is being provided by the
company with the objective of garbing attention of customer to increase its customer base
(McKelvey, 2021). The customers who feels satisfied by the basic facilities provided by
organisations, will influence them to go for premium version which are paid
subscriptions. The customers use of avail the premium facilities for sometime and then
cancels it without paying subscription among, this was the major issue which was faced
by Sony Live. Thus, to overcome from this issue they started making use of Freemium
Model.
 Pyramid model – The business units uses pyramid business model in order to make
enhancement their sales. This model helps businesses in managing its funds. The use of
modern digital technology requires lot of funds which is possible to manager with the
help of Pyramid model. Sony is able to manage its funds and with its technical support
the organisations are able to get cyber security. The issue of cyber attack is being
resolved and customers of Sony trust the online made of payment due to which company
is able to get timely payments and also its sales increases.
 Ecosystem model – The companies want to make sale of its product to different
platforms then they make use of Ecosystem model. They make use of certain platforms in
order to enhance its sales. The website used by companies can be vendor lock with is
helpful in saving against cyber attacks and provide cyber security. Sony is able to make
effective use of vendor lock system and make the payment gateway for customer save

and secure and thus the issue arise due to digital technology is being resolved by them.
The unethical that might arise due to use of emerging digital tools is being reduced.
 On demand model – The operations which are being conducted within the organisation
should be performed on time due to this organisations make use of On demand model.
The effective services on time provided by Sony makes customer satisfy and enhances
their experience. The customers to get products and services delivered on time that is
why on demand model is becoming essential for organisations to be implemented within
its operations (Mancha and Shankaranarayanan, 2020). The customer of Sony who have
taken subscription get additional benefits and are also provided with extra facilities. They
also get huge discount offers to make them feel important as they had paid additional
amount for taking subscription. This is the ethical behaviour adopted by organisations
towards its customer base and to meet its requirements.
These are the digital models which is being used by Sony due to changes takes place
within technology (Gupta and Bose, 2019). Due to online presence certain challenges are their an
organisation have to face such as unethical practices and regarding cyber security. So to
overcome form such issue Sony is making use of such models for carrying out its business
operations smoothly. To get customers trust it is crucial for Sony to first make analysis of cyber
issue and make use of models to avoid it.
TASK – 3
Assess the effect of new collaborative relationships and strategic alliances through digital
technology in context to selected business unit.
Collaborative relationship refers to the work which is being performed by two or more
than two people collectively in order to achieve conman goal. The personality of every
individual is different from each other this is why it is crucial for team member to make effective
communication with each other (Heavin and Power, 2018). By having an effective
communication they will get an clear idea on which direction they have to move and also it helps
in decision making.
Advantages
 With the use of digital technology the team members are able to make communication
with each other at any place where they are available.

 The team member is able to work flexibly according to their convince which helps in
enhancing their level of satisfaction.
 The use of digital technology for building collaborative relationship is the cost effective
solution, as organisation can save a lot of cost in building its infrastructure.
 The other miscellaneous expenses is also being deducted by the use of digital tools, along
with reaching among more customers. The collaborative working leads in getting more creative ideas as many people are
involved in accomplishing single task.
Disadvantages
 The major issue which arise due to online collaborative is chances of fraud and cyber
attacks. The data of company could be misused if hackers hack it.
 Due to lack of effective communication the chances of conflict arises and performance of
work affected badly.
 Due of online connectivity of team member they does not take work seriously and does
not achieve organisational goals.
Strategic alliance arises when two organisations come together in order to achieve
common goals. Both of the parties are equally benefited by the strategic alliance performed by
them because it is a mutual contract and takes place by permission of both parties. The
companies are free to work independently but motives of both the parties should be same.
Advantages
 Both the alliance companies get equally benefits and growth opportunities by working
together. The strong presence of its brand takes place which attracts more number of
customers.
 The ideas of both the companies collected collectively and they are able to produce more
innovative product and hence seeks attraction of customers.
 The optimum utilisation of available resources could be make with the help of strategic
alliance. The brand value and global presence of both the companies would take place due of
effective strategic alliances of companies.
Disadvantages

 The working culture and pattern of both the companies are different so chances of
increase in conflicts and disagreement arises rapidly.
 When the employees of different culture comes together does not feel comfortable and
faces lot of issues in making an effective connection with each other.
 Strategic alliance requires lot of cost to start new business along with making its brand
get promoted and in case they are fail to fulfil the promises then both parties will have to
face huge loss.
Sony is involved in making use of strategic alliance with Honda in order to develop it
new product Evs, which was successfully implemented and companies are able to grab attention
of other customers. The customer base also enhances and they are able to reach out its potential
customers. This is a opportunity for both companies to make it business grow and earn huge
revenue.
TASK – 4
Describe crypto currency with examples
Crypto currency is the vital currency which works on blockchain mechanisms.
They people available on such platforms are involved in buying and selling of currencies. The
prices of those currencies keeps on fluctuation because its prices are decided upon its demand
and supply (Kreutzer, Neugebauer and Pattloch, 2018). Crypto currency can not be use in market
as physical currencies. With this, in some countries it is illegal to trade in those currencies. The
government does not accept it and the coutures where they are legal have to have a tax rate of
more then 30% upon the profit make by individual by trading in crypto market. Their is a online
platform where an individual have to make entry if they want to start trading. There are large
number of Crypto currencies which are being available in the market. As per the value and its
prices traders opt it, they are free to trade in any of the currency. The transactions being done by
the traders are recorded on the block chain mechanism and no one is aware about it. This
platform work independently without any human interference. With the strong cording system
this mechanisms is being developed and run and operated by traders itself. One of the most
popular and first crypto currency is named as Bitcoin, which was being founded in 2009. The
second most popular crypto currency is Ethereum also known as ETH. The government is now
making new laws on crypto currencies that they would be acceptable in markets (Lepanjuuri,

Wishart and Cornick, 2018). The prices would be current prices which is going on but customers
have to pay huge tax on it. As it fully works on online automatic mechanisms so the chances of
hacking is also high, that is why many people does not trust this platform. In order to rise the
prices of currency the developer of currency use of destroy them and hence the demand rises and
increase in prices takes place.
Impact of Crypto on business
The business can make use of crypto currency as a transactions after the implement ion of
government laws. The businesses also uses it in order to make investment and for performing
transactions (Levine, 2019). The platform is not secure that is why changes of hacking is high
and all invested amount of business person can be loose so this is a negative impact of Crypto
currency. The profit while trading in Crypto currencies increase rapidly which is a positive thing
about it. Thus, investment in crypto have both negative and positive factors. Sony can start
accepting Crypto currency using fair ethical practices which will leads customers to invest more
in it.
The adoption of El Salvador of Bitcoin is a alarm for other countries, as they are ready to
accept crypto currency for transition. The government have taken action and make the use of
crypto currency legal (Locoro and Ravarini, 2019). The Bitcoin is already a strong and powerful
crypt currency but by its implementation of this law the demand of this currency rises
immediately. The purchasing power of customers also enhances by the use of crypt currency and
this is who huge amount is being contributed towards the economy.
CONCLUSION
From the above report, it is concluded that adoption of digital technology in the business
leads to increase in productive of companies. The trend of digital technology is now growing
rapidly which by which companies are able to get competitive advantages. The organisations can
make use of different digital business tools in order to avoid the changes of cyber attacks and can
make use of ethical practices. Collaborative relationship refers to the work which is being
performed by two or more than two people collectively in order to achieve conman goal with is
important for performing operations smoothly. The strategic alliance and collaborative
relationship have certain advantages and disadvantages and the companies are being positively as
well as negatively impacted by use of crypto currency.

REFERENCES
Books and Journals
Akanfe, O., Valecha, R. and Rao, H.R., 2020. Assessing country-level privacy risk for digital
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Boojihawon, D.K. and Ngoasong, Z.M., 2018. Emerging digital business models in developing
economies: The case of Cameroon. Strategic Change, 27(2), pp.129-137.
Chaffey, D., Edmundson-Bird, D. and Hemphill, T., 2019. Digital business and e-commerce
management. Pearson UK.
Fayyaz, S., 2018, September. A review on measuring digital trade & e-commerce as new
economic statistics products. In The 16th Conference of IAOS.-URL: https://www.
semanticscholar. org/paper/A-Review-on-Measuring-Digital-Trade.
Gobble, M.M., 2018. Digital strategy and digital transformation. Research-Technology
Management, 61(5), pp.66-71.
Gupta, G. and Bose, I., 2019. Digital transformation in entrepreneurial firms through information
exchange with operating environment. Information & Management, p.103243.
Heavin, C. and Power, D.J., 2018. Challenges for digital transformation–towards a conceptual
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Lepanjuuri, K., Wishart, R. and Cornick, P., 2018. The characteristics of those in the gig
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Levine, L., 2019. Digital trust and cooperation with an integrative digital social contract. Journal
of Business Ethics, 160(2), pp.393-407.
Locoro, A. and Ravarini, A., 2019. The CIO and CDO socio-technical roles in the age of digital
business transformation: an interpretive study. In Organizing for the Digital World (pp.
235-245). Springer, Cham.
Mancha, R. and Shankaranarayanan, G., 2020. Making a digital innovator: Antecedents of
innovativeness with digital technologies. Information Technology & People.
McKelvey, B., 2021. Managing the consequences of digital networks and accelerated complexity
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Nica, E., 2021. Urban big data analytics and sustainable governance networks in integrated smart
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Raichenko, A.V., Antonov, V.G. and Lyandau, Y.V., 2021. Visualization of Corporate Digital
Management. In Socio-economic Systems: Paradigms for the Future (pp. 947-956).
Springer, Cham.
Ruel, H., Rowlands, H. and Njoku, E., 2020. Digital business strategizing: the role of leadership
and organizational learning. Competitiveness Review: An International Business
Journal.
Tanda, A. and Schena, C.M., 2019. FinTech, BigTech and banks: Digitalisation and its impact
on banking business models. Springer.
Ugray, Z. and Johnson, J., 2019. How Business Value Is Extracted from Operational Data: A
Case Study. In Digital business models (pp. 117-145). Palgrave Macmillan, Cham.

Urbach, N. and Röglinger, M., 2019. Introduction to digitalization cases: how organizations
rethink their business for the digital age. In Digitalization cases (pp. 1-12). Springer,
Cham.
Weill, P. and Woerner, S., 2018. What's your digital business model?: six questions to help you
build the next-generation enterprise. Harvard Business Press.