Strategic Analysis of Sony PlayStation's Internal Environment

This PowerPoint presentation provides a strategic analysis of the internal environment of Sony PlayStation. It begins with an overview of corporate strategy, highlighting the use of differentiation and intensive growth strategies. The presentation then delves into Porter's Value Chain, discussing Sony's emphasis on high-quality technology, efficient distribution, and investment in research and development. A detailed PS4 value chain diagram is presented, followed by an analysis using the BCG matrix, categorizing different PlayStation product offerings. The core competencies, including technology, gaming brand, content variety, and social networking capabilities, are examined. Finally, a VRIO analysis is provided to assess the value, rarity, imitability, and organization of these core competencies, offering a comprehensive understanding of Sony PlayStation's competitive advantages and strategic positioning within the gaming industry. The presentation references several key marketing and strategic management texts.

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Internal Environment Analysis

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Script for Sony PlayStation Power point presentation
Slide2. Corporate Strategy
This slide reflects the Porter’s corporate strategy includes the different strategies that can be used
by the business to compete with its rivals. Sony PlayStation makes use of the differentiation
strategy that helps the company to gain the competitive advantage and to enhance the profit in
the financial services. Some of the differentiation strategies that have been adopted by the
company are PS4's high-quality Blu-Ray functions, top graphics and audio capabilities and many
others. Moreover, differentiation strategy contributes to the innovation and uniqueness of the
company (Chernev, 2018). The company has also implanted intensive growth strategy that helps
the Sony Company to achieve continuous growth.
Slide3. Porter’s Value Chain
The slide talks about the Sony development of the PlayStation depends mainly on the tech that
emphasis on the efficient and effective high quality that leads to the quality and trust of the
customers. Along with this, the company distributes the product in several small countries of
Europe which is a market of the outbound logistics. Sales and marketing of the product are
generally done separately and the retailers of the company enjoy the benefit of 30% of the total
volume of the each and every game (Hollensen, 2010). The company makes the investment in
the resources and Research & development activities that are essential for Sony PlayStation.
Slide4. PS4 value chain
The above diagram reflects the Sony PS4 value chain that initiates with the content providers
that provide the content assistance to the software development. The company gained the loyalty

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for the publication of its games as well as act as a platform provider for the online service
provision. The company performs its distribution activity to the retailers from the hardware
supply. The products are distributed to the retailers which ultimately reach to the customers of
the company. This reflects that the company follows the vertical value chain since the time when
the company was able to generate the intellectual property from television film and music
business sections.
Slide5. BCG Matrix
BCG matrix is one of the known methods that are used by the companies to evaluate the
different segments of the PlayStations product offering within the four Quadrants. Each quadrant
represents the different category (Star, Question Mark, Cash Cow, and dogs) according to the
market growth and share (Lee & Carter, 2011).
Stars: - This segment reflects the high sales growth with relatively high market share. Sony
PlayStations has high market share due to this product can fall under the category of Star. The
PS4 can be expected to enter this segment in future.
Question Mark: - This Quadrant includes the low relative market share that is operating in the
high sales growth segment (Wilson & Gilligan, 2012). Currently, PS4 of Sony is categorized in
this quadrant because of its potential to enhance the sales with a relative market share comparing
it to PS3.
Cash Cow: - Sony PS2 and PS3 fall under this quadrant as they operate in the low sales growth
and high market share.

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Dog: - The Sony computing segment (VAIO) can be classified in this segment for failing to
satisfy the needs of the customers because of the myriad flaws leading to failure in capturing the
market.
Slide6. Core Competencies
The major core competencies of the company lead to the competitive advantage of the company
are: -
Technology competence: - The Sony PS is considered to have best raw computing power that
offers its cell processor computing technology along with the capability of associating the
gameplay Size and media entertainment (Johnson, 2016).
Gaming brand: - Company is well-known in the market not only because of its high sales but
also as a gaming brand. The Sony PlayStation brand has also been ranked on the 3rd position
among the most intimidate brands among millennials.
Variety of content: - The PS4 of the company offers a wide range of the content to the users in
the PlayStation store which is one of the core competencies of the company.
Social networking capability: - PS has additional online gaming service that provides the
supports to the social networking in the ways that competitors (Nintendo Wii or the Xbox 360)
are providing and cannot imitate.
Slide7. VRIO Analysis
The above table reflect the VRIO analysis based on the 4 core competencies of the company
which were discussed in the previous slide (Kotler, 2015).

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References
Chernev, A. (2018). Strategic marketing management. Chicago: Cerebellum Press.
Hollensen, S. (2010). Marketing management: A relationship approach. India: Pearson
Education.
Johnson, G. (2016). Exploring strategy: text and cases. India: Pearson Education.
Kotler, P. (2015). Framework for marketing management. India: Pearson Education.
Lee, K., & Carter, S. (2011). Global marketing management. Strategic Direction, 27(1).
Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. New York: Routledge.