BUS301: Sony Corporation - International Strategy Management Report

This report provides a comprehensive analysis of Sony Corporation's international strategy management. It begins with an overview of Sony, a multinational electronics company, and proceeds with a detailed strategic analysis. The analysis employs several frameworks, including PESTEL analysis to assess the external environment, SWOT analysis to evaluate internal strengths and weaknesses, and Porter's Five Forces to understand industry dynamics. The report also incorporates stakeholder analysis to identify key groups and their interests. Based on these analyses, the report proposes strategic options for Sony's future, offering recommendations for the company to navigate challenges and capitalize on opportunities within the global market. The report emphasizes the importance of adapting to external factors, leveraging strengths, and understanding market dynamics to ensure sustained growth and profitability.

International Strategy
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview......................................................................................................................................1
Strategic Analysis........................................................................................................................1
Strategic options for the future....................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
International Business Strategy refers to the plans which are made and implemented by
the organizations so that they are able to determine the future course of action to be adopted
when they move forward (Hitt, Tung and Ralston, 2016). For this report, Sony has been chosen.
It is a multinational company which provides different forms of electronic products to its
customers. In this report, detailed analysis will be made on strategic analysis of the company and
the strategic options which it has in the future time period.
MAIN BODY
Overview
Sony is a big multinational company which is headquartered in Minato City, Tokyo,
Japan. It provides different forms of products to its various customers in the market such as
Television, Cameras, PlayStation, Headphones etc. The company has a strong brand image and
goodwill in the electronics market and therefore needs to consolidate its position to move
forward in the future time period.
Strategic Analysis
For the purpose of conducting strategic analysis of Sony the following models have been
considered-
PESTEL Analysis-
This analysis is conducted in order to understand the significance of the external
environment of the organizations (Holmes Jr and et.al., 2018). In the context of Sony, this
analysis is as follows-
Political factors- These are government policy, political stability, corruption, foreign
trade etc. For Sony considering these factors are crucial to be considered because they can create
an impact on its overall profits.
Economic factors- These are economic growth, exchange rates, interest rates etc. These
factors are important for Sony because economic situations determine the strategy which is
required to be adopted by the organizations.
Social factors- These are population growth rate, age distribution, health consciousness
etc. In the context of Sony these are important factors which can determine the way the
customers will behave regarding purchasing its products in the market.
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Technological factors- These are technology incentives, level of innovation, R&D
activity etc. For Sony it is quite important to consider these factors. This is so because it needs to
bring new technology in its products as well as services in the market.
Environmental factors- These are weather, climate, environmental policies etc. Sony
needs to promote eco-friendly technology because the customers are nowadays conscious
towards the environment.
Legal factors- These are discrimination laws, antitrust laws, employment laws etc. For
Sony, consideration of these factors is quite crucial because by considering them it will make
sure that it abides by the rules and regulations while making its products and providing its
services.
SWOT Analysis-
SWOT Analysis is a management tool which is used by the organizations in order to
analyse the internal environment of the organization (Katsikeas, Leonidou and Zeriti, 2019).
With this analysis the organizations like Sony will be able to analyse their internal position quite
effectively.
Strengths Weaknesses
 Customer Base- The customer base of
Sony is quite strong which offers it
plenty of opportunities in the future
time period to expand its products and
earn higher-level of profits.
 Quality Products- Sony provides
quality products to its customers and
therefore it is its biggest strength.
 Lacking in marketing efforts- Sony is
lacking behind in its marketing efforts
as compared to other companies which
is its weakness.
 Copying of products- Some of the
products of Sony can be easily imitated
by the competitor companies which
therefore creates a weakness for the
company.
Opportunities Threats
 Expansion- By expanding its products
and services to the countries where it is
not present Sony will be able to
enhance its level of profits.
 Higher tax rates- The higher tax rates
charged by the government act as a
threat for Sony and can therefore lower
its level of profits in the future time
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 Innovation- By bringing out
innovation in its products and services
Sony will be able to make sure that it is
able to earn higher-level of profits in
the future time period.
period.
 Competition level- Increasing
competition in the market creates threat
for Sony because this can lead to
decrease in its overall profits.
Porter's 5 forces-
Porter's 5 forces is a model which is used in order to identify and analyse the forces
which helps in determination of strengths and weaknesses of the industry (Porter's 5 forces,
2020). These forces are explained in the context of Sony as follows-
Competition in the industry- This refers to the level of competition which is present in
the industry. For Sony this force has a high power because in the electronics industry there is a
high competition which is present in the market.
Potential of new entrants- This means the potential which the new entrants have in the
industry. In the context of Sony this force has a higher power because in electronics industry,
several new players can enter the market.
Power of suppliers- This refers to the power which the suppliers have in the market to
influence the prices of inputs in the market. For Sony, this force has a high power because the
suppliers in electronics industry have power to influence the prices of inputs.
Power of customers- This means the power which the customers in the industry to
influence the prices of the different types of products. In the context of Sony, this force has a
high power because in the electronics industry it is essential to understand what the customers
want in order to provide them with the right products.
Threat of substitutes- This refers to the power of the substitute goods in the market. For
Sony, it is quite crucial to consider this force because it can impact its profits. In the electronics
industry, this force has a high power because cheaper substitutes of quality products are available
in the market.
Justification- All the forces have a high power for Sony and therefore its managers are
required to frame a specific strategy to be adopted by them for growing their company in the
future time period.
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Strategic options for the future
Stakeholder Analysis- The use of this analysis is done by the different types of
organizations so that they are able to identify the way they can satisfy their stakeholders (Lessa,
Becard and Galvão, 2020). In the context of Sony, this analysis is as follows-
Stakeholders of the company-
 Customers- Customers have interest in the organization because they are the ones who
purchase the products and avail the services of the company.
 Suppliers- Suppliers are interested in the working of the organization because they are
able to influence the prices of inputs of the company.
 Society- Society is a stakeholder for the companies because it is required to provide
products and services according to its requirements.
 Government- Government is a stakeholder for the firms because they are required to
adhere to the rules and regulations set by it for them.
There can be different types of groups under which stakeholders can be categorized such as-
 High power, high interest- These are the most important stakeholders for a particular
organization (Morris and Tronnes, 2018). For Sony it is important to keep these
stakeholders satisfied.
 High power, low interest- These stakeholders are important for the organizations but
have a low interest in the working of the organization. However for companies like Sony
it is crucial that it is able to keep them satisfied.
 Low power, high interest- These stakeholders are the ones who have low power but
show high interest in the working of the organization (Peterson, Arregle and Martin,
2020). Thus it becomes necessary for Sony to make sure that it is able to satisfy these
stakeholders also.
 Low power, low interest- These stakeholders are the ones having low power and low
interest in the working of the organization (Schriber, 2016). For Sony, it is important to
prepare strategies for satisfying these stakeholders.
Recommendations for the company to move forward-
 On the basis of PESTEL Analysis of the company it can be said that different types of
external factors can influence its working pattern. Thus for Sony, it is important that that
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it considers these factors and decides what is best for it the future time period. It must
look forward to bring some new products in its product range so that it is able to maintain
its customer base and enhance its level of profits.
 On the basis of SWOT analysis of the organization, it can be said that the firm must be
able to work on a strategy on the basis of conclusion drawn from it. The conclusion from
the SWOT analysis of Sony is that it needs to capitalize on its opportunities by using its
strengths which will minimize its weaknesses and threats. For this it is required to use
innovative technology for its products and services.
 On the basis of analysis of Porter's 5 forces, it can be said that the company operates in an
industry where all the forces have a high power. For Sony, it is crucial that it is able to
understand the impact of these forces and then prepare a specific strategy. It must
understand the dynamics of the market and then bring out the products which can satisfy
the customers.
CONCLUSION
From the above report, it can be concluded that international strategy management refers
to preparation of specific strategies which provides guidelines for action in the future time
period. The use of PESTEL analysis, SWOT analysis and Porter's 5 forces can be done by the
managers of the organizations so that they are able to provide strategic directions which an
organization can adopt in the future time period.
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REFERENCES
Books and Journals:
Hitt, M. A., Tung, R. and Ralston, D., 2016. International strategy and institutional
environments. Cross Cultural & Strategic Management.
Holmes Jr, R. M. and et.al., 2018. International strategy and business groups: A review and
future research agenda. Journal of World Business. 53(2). pp.134-150.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era. International Marketing Review.
Lessa, A. C., Becard, D. S. R. and Galvão, T. G., 2020. Rise and Fall of Triumphalism in
Brazilian Foreign Policy: The International Strategy of the Workers Party’s
Governments (2003–2016). In Status and the Rise of Brazil (pp. 71-88). Palgrave
Macmillan, Cham.
Morris, R. D. and Tronnes, P. C., 2018. The determinants of voluntary strategy disclosure: An
international comparison. Accounting Research Journal.
Peterson, M. F., Arregle, J. L. and Martin, X., 2020. Multilevel models in international business
research. In Research Methods in International Business (pp. 417-432). Palgrave
Macmillan, Cham.
Schriber, S., 2016. Nordic strategy research—Topics, theories, and trends. Scandinavian Journal
of Management. 32(4). pp.220-230.
Online
Porter's 5 forces. 2020. [Online]. Available through:
<https://www.investopedia.com/terms/p/porter.asp>
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