Report: Strategic Analysis of Sony's Business Operations and Strategy

This report offers a comprehensive analysis of Sony Corporation, examining its strategic business plans, mission, vision, goals, objectives, and core competencies. It delves into Sony's merger with Ericsson, the launch of its Xperia S smartphone, and its position in the mobile market. The report includes a detailed SWOT analysis, assessing Sony's strengths, weaknesses, opportunities, and threats. It explores the political, economic, social, technological, legal, and environmental factors influencing Sony's operations. Furthermore, the analysis covers stakeholder relationships, emphasizing the roles of suppliers, customers, employees, government, and investors. The report concludes with recommendations for strategic improvements, including market entry and joint venture strategies, and product development to capture new markets. The report is supported by references to academic sources on business strategy and management.

When two giant companies, that is, “Sony” and
“Ericson” merged, formation of Sony Ericson took place.
One of the major behind this launch in the market was to
bring mobile revolution in the mobile industry which
comes under the consumer electronic sector.
This merger took place in the year 2012 where
organization has launched its new product “Smartphone”
which was named as Xeperia S.

 Sony Mobile Communications (SMC) provides mobile multimedia devices
and has become the leading organization in the mobile market with offering
phones, accessories and PC cards.
 In this organization, around 7,500 employees are working across 40
countries.

Major aim of Sony behind offering its high quality products and
services is to get established as the leading brand at the global level in
the market of mobile handsets.
Vision of this company is to offer trendy and stylish products so as to
make customers able to differentiate them with giving the high level of
satisfaction.
1.1 The Mission, Vision, Goals, Objectives and Core
Competencies of Sony

Enhancing the market share of company.
Expansion of business at the international level.
• Making investment in research and development to bring innovation.
• Providing training and development session to employees to increase
their existing skills and competencies.

 Following the sustainability approach in business.
 Offering cost effective products that is beneficial for
customers as well as for Sony Corporation.

 Risks involved while making exchange of funds
 Threats from the competitors present in market
 Use of latest technologies and having innovation
 Risks involved with legal, social, political, economical, environmental and
technological environment
 Outsourcing of products and services from other nations
 Having a weak supply chain management

Benchmarking: Through this technique, Sony will be able to match the
results with that of set standards.
STP ( Situational -Target-Path): With this, Sony can make assessment
of the current performance and can make improvements in the areas
where they are lacking behind.
Contingency planning: It helps the firm to deal with any kind of
uncertain situation.
Forecasting: On the basis of expert opinion, decisions are made in
Sony Corporation.
1.3 Methods used for framing strategic business
plans for Sony

STRENGTHS
 Increase in demand
 Operating at the global level
 High range of products
 Innovative features
 Rich brand image
 Distinct features with that of competitors
WEAKNESSES
 High production cost
 Increased debt ratio leading to create issue in future credibility
 High cost of promotion

OPPORTUNITIES
 Segmenting the markets in a proper manner
 Having experts in research and development team
 Using the latest technologies
 Marker leader in Smartphone and tablet market
THREATS
 Intense rivalry among firms
 Availability of substitutes
 High cost of production
 Deficiency of resources
 Entry of new firms

Political: Political environment of nations where Sony is operating is stable and strong which is
helping the firm to run with its existing company policies in a smooth way.
Economical: Economic condition of nations where Sony is having its operations is sound which is
assisting the firm to earn high profits.
Social: Company knows the importance of keeping society happy to run in the long run with
sustainability. This is the reason; it is giving due consideration on the CSR actuivities.
Technological: Sony Corporation is famous for its use of latest technology in all the devices that it
offers. Through this, it is maintaining the leading position in the market with respect to the best
technology

Legal: Sony follows all the rules and regulations imposed by government so as to
protect the business with any kind of obligations or legal actions taken by the
government for the non-fulfilment of it.
Environmental: Company recycles many of its waste material so that environment
would not get affected and also, it gives benefit of saving cost of the firm.

 Degree of competitiveness: Having biggest competitors like Motorola and Nokia.
 Bargaining power of buyers: High competition due to availability of many substitutes.
 Bargaining power of suppliers: There are many sellers that are offering similar products and
services.
 Threat from new entrants: Due to the requirement of huge investment, there are very few firms
exist in this industry and new ones are not entering easily.
 Threat from substitutes: There are many rivals present in the market and thus, many substitutes of
the products of Sony are available.

SUPPLIERS
 Their absence proves to be an issue of the organization as they are the only people who
supply material to the firm.
 Thus, it is important for Sony to maintain healthy relations with them to make the business
run in a smooth way.
CUSTOMERS
 They are the king of market and if not be satisfied, they can lead the firm to face severe
losses. They are the people who builds the goodwill of organization. This is the reason;
Sony offers high quality products to them in order to gain their loyalty.
EMPLOYEES
 Employees are the assets of any organization. Without their efforts, firm cannot run and
survive. Thus, to keep them satisfied, Sony provides them a healthy working environment.
2.3 Role and significance of stakeholder analysis

GOVERNMENT
Sony give due consideration to the laws and acts imposed by UK
government. It follows all the norms made for the welfare of employees
and regarding tax so as to get protected against any legal action.
INVESTORS
 Sony knows that without investors, it would not be having fund by which
it uses in its operations and expansion. Thus, by giving attractive returns
on their invested amount, it is keeping the investors satisfied.

2.4 Framing a new strategy and suggesting for the
organization
Market entry strategy will be helpful for Sony Corporation.
Higher market shared can be captured through this along with high profits.
A systematic market research needs to be conducted by the firm before
implementing this strategy.
Strategy of joint venture would also prove to be beneficial for Sony.
Through using latest and innovative techniques, it can penetrate the market in
which it wants to operate or expand.
However, for this company, product development would prove to be the best
in order to capture the new markets.

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Strategy. John Wiley & Sons.
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