Strategic Management Report: Sony Corporation's UK Market Analysis

This report provides a strategic analysis of Sony Corporation, focusing on its operations within the UK market. It examines the company's corporate and business-level strategies, including market penetration and the adoption of a hybrid marketing approach. The report delves into industry and competitive analyses, utilizing tools such as the Ansoff matrix and value chain analysis to assess Sony's strategic positioning and core competencies. It evaluates the suitability, acceptability, and feasibility of the recommended strategies, offering insights into how Sony can achieve its organizational goals and maintain a competitive advantage within the electronics industry. The analysis underscores the importance of adapting to market trends and satisfying stakeholder needs for sustainable growth.

Strategic Management- 2
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Executive Summary
In order to develop and grow the business within market it is essential for firm to carry
out both internal and external analysis. However, globalization is the best factor that helps
organization in creating a wide impact upon the growth and development of enterprise. For
instance, by adopting market penetration strategy it is useful for Sony Corporation to expand its
business globally. Further, carrying out hybrid marketing strategy in order to implement market
penetration helps in focusing on attaining high market share and profitability. In the current
consultant report it analyzes that Sony organization needs to evaluate its business and corporate
strategy so that its stakeholders can be satisfied. Further, evaluating the best strategic options
helps firm to achieve organizational goals.
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Table of Contents
INTRODUCTION...........................................................................................................................5
CHOICE OF CORPORATE STRATEGY......................................................................................5
CHOICE OF BUSINESS STRATEGY...........................................................................................8
EVALUATION OF THE STRATEGY...........................................................................................9
CONCLUSION AND RECOMMENDATIONS .........................................................................12
REFERENCES..............................................................................................................................13
Appendix 1.....................................................................................................................................15
INTRODUCTION...........................................................................................................................1
INDUSTRY ANALYSIS................................................................................................................1
Strategic analysis of Sony Corporation..................................................................................2
COMPANY ANALYSIS.................................................................................................................3
External analysis.....................................................................................................................3
Competitive analysis .............................................................................................................4
Internal analysis......................................................................................................................6
Core competencies..................................................................................................................6
Value chain analysis...............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10
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Illustration Index
Illustration 1: Ansoff matrix............................................................................................................7
Illustration 2: Strategic planning......................................................................................................2
Illustration 3: Porter 5 Force analysis..............................................................................................5
Illustration 4: Value chain analysis .................................................................................................7
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INTRODUCTION
In the present consultant study, it provides recommendations regarding the business and
corporate strategy undertaken by Sony Mobile Corporation within UK. Furthermore, it also helps
in providing an evaluation of the recommended strategies through examining their suitability
against the market trends in the industry, acceptance by the stakeholders and feasibility in terms
of having proper competitive advantage (Cavusgil, 2009). Also, it can be stated that it is crucial
for businesses to determine its growth and development factor so that they can attain required
organizational goals and objectives. Sony possesses innovative technology and best features that
help in developing effective position of firm in the marketplace. Further, business operates in
worldwide market and undertakes market penetration business strategy in order to increase sales
and gain favorable results (Davidson, 2012).
This study is based on a previous study done by the scholar in order to examine the
attractiveness of Sony Corporation in the market and the distinctiveness of Sony business in the
particular industry. However, as per the previous analysis of mobile phone industry in the UK, it
has 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, it
can be stated that threat of new entrants is low in the electronic segment as it requires high
investment and brand image in the market (Gelder, 2003). Meantime, it is very beneficial for
businesses which are already carrying out its business from long time within the industry.
Additionally, assessing Sony's core competencies and analyzing them through VRIN framework
identify about the competitive edge that company possesses. However, there are varied other
rivals clenching similar competitive advantage. Therefore, it has assessed that Sony is not having
a distinctive image in the market. This study involves other options for the further development
of Sony Corporation at both the corporate and business level. After that, it will focus on
evaluating as well as justifying the same (Gregory, 2010).
CHOICE OF CORPORATE STRATEGY
This particular section helps in examining the strategic options available on the corporate
level through determining different choices of products and markets for Sony Corporation in
order to enter or exit within the market. In the current scenario, Sony operates its business in
manufacturing of electronic and professional products in order to achieve organizational goals
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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 purpose
and scope of business and how it helps in adding value to the business units (Heinecke, 2011). It
can be evaluated that at corporate level, it is essential for business to possess options in order to
increase its diversity in relation of two axes i.e. enhancing originality of products and services or
increasing originality of market or both in order to attain desired goals effectively. Here, Ansoff
matrix can be implemented in order to determine corporate strategic direction that involves
market 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 which
firm can deliver new or modified product in the existing market. For instance, Sony launches its
X series in the market in order to gain attention of consumers. While, market development states
that business aims to provide current product line into a new market. However, main aim of
market development is to help in attracting a new customer segment by adopting slightly
different strategy in order to enhance the market share. For instance, Sony could develop its
range of phones for using it in army (Griffin, 2002). Moreover, diversification states that it is the
strategy that entails offering a new product into a new market and it is often used at the time
when market is saturated and profits are limited. However, such type of strategy is used by
business at the time when they are entering into a completely new market and wants to achieve
desired results. For instance, Sony moves from manufacturing and selling electronic products to
producing 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 market
by using available products. Through analyzing UK electronic industry, it has been assessed that
industry is very much attractive for businesses which are already established and have their
presence in market. Thus, it puts market development and diversification into the less favorable
corporate strategic options because here, business enterprise starts its operations into different
market (Vinzant and Vinzant, 2000). Further, Sony's current strategic capability is that they are
able to provide the best mobile phones to its consumers and attain competitive advantage. On the
other hand, as per the value chain tool, business is also not suitable to master new technology
and processes from which they are not familiar. Hence, it can be evaluated that if Sony adopts
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product development strategy as corporate strategic direction than it would lead to great risk for
business (Whipp, 2000).
Illustration 1: Ansoff matrix
(Source: Huan and et. al., 2008)
Furthermore, it can be assessed that it is essential for Sony to undertake market
penetration strategy as a corporate strategic direction in order to attain desired goals. Also, it
helps organization to develop strategic capabilities, operate in the same scope and attain
attractiveness of the commercial market of the UK electronic industry. Hence, competitive
advantage for Sony is within the electronic segment and thus it helps business to grow and
develop within the competitive marketplace (Drejer, 2002).
Sony Corporation operates within electronic industry and thus it is attractive because
business uses innovative design and features in order to attract consumers and enhance their
market share. Adopting effective technology is the best tool as it helps firm to create wide and
significant impact upon the product quality and creativity within the market. Also, Sony analyses
the market trends as well as demands and then produces similar products in order to satisfy the
needs of consumers (Freeman, 2010).
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CHOICE OF BUSINESS STRATEGY
It can be evaluated that business level strategy is concerned with the way a business seeks
to compete successfully in the particular market and carry out desired goals. Further, proposing
the strategy helps in developing a framework in order to generate tactics at the business level.
Further, there has been a sharp contrast among differentiation and cost leadership has been
considered in order to implement effectual strategy within the business and attain competitive
advantage (French, 2009). However, such tools are much more focused tool as it proposes
strategies as per the perceived value by customers and price to customer rather than cost to firm.
Cost leadership is the best concept that helps in describing a way in order to establish the
competitive advantage attain by firm such as gaining lowest cost of operations within the
industry. Moreover, there are four different options available within business level strategies
such as differentiation, low price, hybrid and non-competitive strategies (Harrison and John,
2013).
Differentiation can be stated as the concept that helps in developing uniqueness which is
valued by customers and allows business to charge premium prices for its products and services
to attain organizational goals. For example, Apple phones are the premium phones in the mobile
phone market. Further, low price strategies can be evaluated as becoming the lowest cost
business operating in the domain of the activity so that best actions can be carried out (Hill and
Jones, 2012). There is tough competition among mobile phone manufacturers therefore, it is
essential for organizations to produce low price products in order to attract consumers towards
the company and achieve desired goals. Moreover, non-competitive strategies can be stated as
business adopting such tactics relies on charging high prices and low benefits that ultimately
leads to failure. Therefore, it is crucial for business to undertake effectual strategy so that it can
be implemented within firm and thus effective organizational objectives can be attained (Eshun,
2009).
At the end, hybrid business strategies can be assessed as the best and efficient strategy
implemented by Sony in order to enhance the market share and achieve more benefits as
compared to low price strategies and differentiating the product from other rivals. Sony
implements cost leadership strategy within business strategic corporate option because it
possesses certain competitive advantage in the electronic field and provide products and services
at best cost so that results can be attained (Faulkner, 2002). Adopting cost leadership strategy
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helps in assessing that business produces products and services with unique features that are
acceptable by customers at the lowest price as compared to the other rivals. For instance, the
main competitive advantage of Sony Corporation is its electronic segment and thus it represents
that firm operates at the lowest cost within the industry (Grosse, 2000).
Moreover, it can be assessed that Sony adopts hybrid strategy as the business strategy
because companies have succeeded using a single strategy i.e. either low cost or differentiation.
Therefore, undertaking differentiation strategy helps firm to produce unique or differentiated
products and services as compared to rivals in the form of technology and features assists Sony
to achieve best results (Grunig, Clark and Kuhn, 2010). Also, business position themselves
effectively as a unique brand image in the minds of consumers and provide best quality products
and services to consumers and attain satisfaction. Furthermore, there are wide range of
businesses who are implementing both cost leadership and differentiation strategy as well in
order to gain high market share and achieve desired outcomes (Mongay, 2006). Thus, in the
present consultant study it recommends that adopting hybrid business strategy which is based on
both low prices mobile phones and differentiation strategy i.e. by positioning the mobile phones
at a unique brand image in the minds of customers and achieve corporate strategy of market
penetration (Haley and Haley, 2006).
EVALUATION OF THE STRATEGY
Following is the key evaluation criteria that is suggested in order to evaluate the proposed
tactic such as suitability, acceptability and feasibility. Thus, it helps in examining the identified
market penetration strategy with hybrid business strategy and achieve desired goals and
objectives (Hansen, 2006). These are as follows-
 Suitability- It is concerned with the overall objective of the strategy and thus aligns best
relationship between the proposed strategy and the trends and opportunities within the
industry. However, at the time of designing the strategy it helps in proposing best strategy
so that it delivers value for money to consumers as it is the current trend in the UK
electronic industry (Ireland and Hoskisson, 2008). For instance, there are varied
consumers who avoid paying high cost to mobile phone and want to buy at cheap prices
because of economic breakdown in the country. Also, it is crucial for Sony to obtain
innovative technology and produce unique featured mobile phones as there is a huge
competition available within industry. In addition to this, the proposed strategy helps in
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enhancing consumer satisfaction and overcome the threat of high power of buyer. Thus, it
can be attained by expanding the variety of mobile phones and provide customers a
chance to use specific mobile phones that satisfies their needs (Macnamara, 2004).
Hence, it can be stated that the proposed strategy is suitable in order to deliver best value
price and position Sony as a quality manufacturer electronic products in order to fulfill
the trends in the industry and attain organizational goals (Strategic Marketing Planning,
2002).
 Acceptability- Here, it can be assessed that the proposed strategy is able to meet the
expectations of the stakeholders or not. For instance, stakeholders can be divided into
four different groups such as economic, social, technological and community
stakeholders. The below presented table shows the stakeholders and their crucial desires
and also comparing their expectations with our offers (Madichie, 2008). These are as
follows-
Factors Stakeholders Expectations Company's offer
Economic Customers  Cost effective
prices
 Wide range of
options
 Quality
products
 Customized
features
 Low cost
 Variety of
models
available
 Best products
as compared to
competitors
 Easy to use by
anyone
Suppliers  Predicting the
demand earlier
 Timely
Payment
 Strategic
planning
 Adopting just-
in-time
strategy
Distributors  Requires
regular supply
 Company
offers best
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of products distribution
channel to
reach
consumers fast
Competitors  High
competition
 Possess strong
brand image
and position in
market
Shareholders  No money
losses
 Goodwill
 High profits
 Corporate
social
responsibility
Social Regulators  To follow
different rules
and regulations
 Should provide
no harm to
environment
 Providing best
quality
products
 Eco-friendly
and recyclable
products
Technological Standard agencies  Agreement
with the
industry norms
and standards
 Delivering
high quality
products
 Best offers
Community Society  Band image in
market
 Following CSR
activities
Thus, it can be stated that our proposed market penetration strategy i.e. hybrid business
strategy helps in providing best offers to shareholders in order to meet their expectations and
attain organizational goals (Fodness, 2005).
 Feasibility- It involves different capabilities, Sony possess in regard to implement our
proposed strategy. However, based on the firm's internal analysis, Sony Corporation
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possess threshold capabilities that helps company to attain distinctive brand image in
market. Further, implementing such strategy helps Sony to enhance its product range in
market *(Novicevic and et.al., 2008). For instance, delivering Sony X series latest mobile
phones in market at cheaper rates as compared to competitors products. Thus, it can be
stated that the proposed strategy does not require Sony Corporation to develop any new
competencies. While, it suggests them to maintain existing competencies and achieve
desired goals (Perrott, 2011).
CONCLUSION AND RECOMMENDATIONS
It can be articulated from the consultant's report that both internal and external analysis of
Sony Corporation helps in analyzing competitive advantage of firm in market. Thus, it helps
management in building long term growth and development of business in regard to enhance
market share and profitability. Further, business proposes and justifies both corporate and
business strategy for Sony Corporation. It can be stated that the options provided by Ansoff
matrix helps in assessing that market penetration is the best strategy that helps firm to implement
its corporate strategy in order to add value to the business enterprise. Further, hybrid business
strategy has been adopted in order to implement market penetration tactic in market. At the end,
the proposed strategy was implemented with the help of SAFe model and determine the suitable
trends in the electronic industry, acceptance by the stakeholders and feasible in terms of Sony's
capabilities and resources. Furthering, it can be suggested that the current strategy implemented
within Sony organization helps in enhancing their market share and aims to deliver cheap price
products to consumers.
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