P4 Marketing Research

Introduction
In this assessment there will be information containing PEST and SWOT analysis for
Sony Corporation. There will also be a PEST and SWOT analysis conducted for one
of Sonys products which is the Sony Ericsson Satio mobile phone.
PEST Analysis for Sony Corporation
Political factors for Sony Corporation can be changed at any time. The
o!ernment holds the power to change any policies and regulations which may
affect Sony at the time. The credit crunch and the recession may become
reduced" therefore resulting in better trades for Sony Corporation. #owe!er this
also means that the same has occurred for Sonys competitors. This means that
Sony must de!elop ideas on how to stay ahead of its competitors. The laws
which can affect Sony Corporation would consist of new international policies.
Internationally the o!ernment may change or increase trading restrictions which
would definitely change the way Sony wor$s" because it needs to trade. The
o!ernment also has the power to change minimum wage" ta%" &'T etc. These
factors must be concentrated on so that Sony is prepared for any ma(or global
changes. 'lso" minimum wage would also increase because reports indicate that
since )*** it has increased from o!er three pounds to fi!e.
Currently the state of our economy is not in a good position. +rom all the historic
recessions" we are currently reported to be in the worst one. The economic
growth has shrun$ which means that the growth of the economy is negati!e. The
recession and the credit crunch may be deducted o!er the ne%t year.
Economically" due to this many changes can occur such as the interest and
e%changes rates. ,ue to the recession being deducted in the near future"
e%change rates may also decrease" howe!er steadily. Sony must be aware of
any trading restrictions the o!ernment has made. Since Sony is an international
company the e%change rates can be different to whiche!er country they trade
with. If the e%change rates in different countries ha!e changed" Sony would need
to wor$ out what prices are their products being sold at and whether it would be
worth it.
Kasim Axel Maqsood
Socially" Sony Corporation would be predicted to do well. The company has
already gained a lot of reputation because of the -uality products and ser!ices
they pro!ide. Technology has been impro!ed by a mass ma(ority. Sony may e!en
ha!e new competitors which may impact on them. Sony must ensure that they
stay ahead of technology. They must be able to create re!olutionary e-uipment
for people because thats what their company would rely on to stay ali!e.
Companies such as .icrosoft and 'pple would also do the same. People ha!e
trends which Sony must learn so that they may create products which can relate
towards them. +or e%ample" many young adults tend to listen to music/ therefore
Sony would create products which may allow people to listen to music anywhere
at any time. People will ha!e different tastes of style" trends" acti!ities etc. Sony
must also impro!e their wor$ of ideas so that they can still please their
customers and that they ha!e adapted with the ageing of the company.
Technological factors for Sony Corporation are !ery important to study. Sony
Corporation wor$s around the use of technology e!ery day. It depends on
technology so that it may pro!ide efficient producti!ity of wor$ internationally.
Sony would use upgraded and new technology to increase its producti!ity le!el
and to stay ahead of its competitors. Sony would need to use new technology to
conduct its research and de!elopment which would help the business create new
products using customer information and also by conducting mar$et research.
SWT Analysis for Sony Corporation
Kasim Axel Maqsood
Strengths
Sony a!le to create high "uality
products for its custo#ers$
%istory of products sho&s that
the !usiness is 'ery reputa!le$
Engineers ha'e learnt fro# the
past failures and so they can
produce and &ork !etter
The co#pany is 'ery co#petiti'e
to&ards other co#panies$
Sony is a!le to e(pand its #arkets
and &ork to produce 'arious
products$

Weaknesses
Within the last fe& years Sony has
!een #aking a loss &ith a fe& of
its products$
Sales of all products are
see#ingly starting to slo& do&n$
The co#pany has no sense of
direction and is not !eing
#anaged properly$
The functional depart#ents &ithin
the organisation are not
co##unicating &ith one another
and so producti'ity has
decreased$
pportunities
The engineering depart#ent has
increased in si)e and so therefore
are &orking harder$
Sony is kno&n not to copy any of
its co#petitors and so #ore
reputation is gained
The #arketing depart#ent has
increased ad'ertising techni"ues
in order to attract ne& custo#ers
Sony is trying to sell their high
"uality products cheaper to attract
custo#ers
Sony Corporation #ay decide to
e(pand #ore o'erseas$
Threats
Sony Corporation has co#petitors
&hich are #ore po&erful* such as
Microsoft$
Recent reports sho& that #ost of
their products are forged and sold
as fakes* &hich #eans that so#e
of Sony+s reputation is decreased$
Sony also lacks the direction of
strategy &hich #eans its
co#petitors could !e doing !etter$
Co#petitors achie'ing #ost of
Sony+s custo#ers due to the fact
that their products are achie'ing
'arious #arket types$
SWT Analysis for Sony+s Product Playstation ,
Kasim Axel Maqsood
Strengths
The Playstation , is considered
to !e a high "uality product$
As &ell as ga#ing it also allo&s
users to access the internet
and allo& the# to play 'ideo
and audio files$
Many people are attracted to
the product due to its
predecessor+s reputation$
The product is &ell kno&n due
to its %- .high definition/
functionality$
Weaknesses
The cost of the product is
e(tre#ely higher than its
co#petitors$
Most people &ere disappointed
!ecause of the late release of
the product$
The product uses 0lu1Ray
for#at &hich #eans that the
ga#es sold for the PS, are
e(pensi'e$
Sony has not #ade #uch profit
fro# selling the Playstation ,$
pportunities
The PS, syste# is capa!le of
!eing updated if the user
&ishes$
The PS, syste# is the latest
and ne&est console$
The console has a lot of
reputation due to its
predecessors$
The console has #any 'arieties
of storage options so people
can sa'e or !ack up anything
on the console$
The console can !e !ought in
!undle packs* for e(a#ple &ith
t&o controllers and t&o ga#es
or &ithout$
Threats
The co#petition of the console
is !eing sold #ore such as the
2intendo Wii and the 3!o( ,45$
The 3!o( ,45 is kno&n to ha'e
!etter interface and upgrades
are #ore a'aila!le$
More people &ould prefer the
3!o( ,45 and the 2intendo Wii
rather than the Playstation ,$
The PEST analysis for Sonys product is the same as the business.
Kasim Axel Maqsood
M6 1 Marketing Research
Introduction
This assessment will contain !ital and essential information consisting of PEST and
SWOT analysis and the differences between them. The organisation that I ha!e
chosen to use as an e%ample is Sony Corporation. I will then choose which type of
mar$eting techni-ue is better for Sony Corporation.
SWT Analysis Ad'antages and -isad'antages
Ad'antages of SWT -isad'antages of SWT
SWOT analysis is used to help
clarify and summarise the $ey
issues and opportunities facing a
business.
SWOT analysis also helps the
business set its aims and
ob(ecti!es.
The Ob(ecti!es would be helpful to
help ma%imise the businesses
strengths.
This type of mar$eting techni-ue
can also help the business
conduct new strategies.
It would enable the management
department of an organisation to
focus on strengths and build on
opportunities.
Can enable the business to spot
business opportunities and use
them fully.
If the SWOT analysis was to be
effecti!e" it must be conducted
regularly which can cost a lot of
time.
It could also ta$e a long time to
recei!e information of the
company to produce the SWOT
analysis.
The SWOT analysis lac$s detailed
structure and so therefore can
miss $ey elements.
SWOT analysis is mainly made up
of lists.
If the company $eeps on
compiling lists then it will not
sufficiently concentrate on the
ob(ecti!es.
0usinesses may o!erloo$ all the
wea$nesses and concentrate on
strengths of the business from
SWOT lists.
Kasim Axel Maqsood
PEST Analysis Ad'antages and -isad'antages
Ad'antages of PEST -isad'antages of PEST
It is simple to conduct a PEST
analysis.
It would only cost the business
time to produce a PEST analysis.
Pro!ides an understanding of
wider business en!ironment.
Increases the de!elopment of
strategic ob(ecti!es.
It can raise awareness of threats
towards a pro(ect within the
company.
Can help businesses to anticipate
its future difficulties.
Can help businesses to a!oid the
upcoming difficulties or minimise
the effects.
Can help businesses find
opportunities and e%ploit them.
PEST analysis would only be
effecti!e towards a company if it
was conducted regularly.
The PEST analysis needs
different re!iews in order to !iew
different prospecti!e.
It will ta$e time for the user to
access business information.
It is usually produced as a list not
produced as a written report.
The changes of society ma$e it
difficult for business to anticipate
or conduct future decisions.
The analysis can be based on
assumptions which can be false or
pro!e to be unfounded.
PEST analysis only co!ers
e%ternal business en!ironment.
%o& PEST can !e 7seful to&ards Sony
Sony Corporation would use these factors to monitor the e%ternal factors of the
business. PEST can be useful towards Sony Corporation because it can be used to
identify any new legislation" trading restrictions" &'T" ta% laws" social trends"
technological impro!ements etc.
PEST can also be used as a mar$eting techni-ue towards Sony business Sony
mar$eters would want to $now how well the business is running. 0y using PEST
Sony mar$eters can de!elop new strategies to help de!elop the business o!erall.
They could do this by ad!ertising new products or ad!ertising the company and its
Kasim Axel Maqsood
components. The company is able to predict what their future business en!ironment
will be using political" en!ironmental" technological and social factors.
%o& SWT can !e 7seful to&ards Sony
Sony Corporation can use SWOT analysis to monitor its Strengths" Wea$nesses"
Opportunities and Threats. Strengths can be useful towards Sony because it would
help them identify attributes which help them in achie!ing their ob(ecti!es.
Wea$nesses can be helpful towards Sony because it would be pro!iding them with
information concerning attributes which are harmful towards achie!ing ob(ecti!es.
Opportunities are e%ternal factors which can help the business achie!e its ob(ecti!es.
Threats are e%ternal factors which could do damage towards the business.
1sing SWOT analysis at Sony Corporation can be !ery helpful as they would be
notified of both their strengths and wea$nesses/ howe!er the company may only
concentrate on their strengths and try to impro!e them. This is because businesses
tend to o!erloo$ wea$nesses of the business. SWOT analysis can be used to
identify Sonys current business standing and also how far or behind it is from its
competitors. This would gi!e Sony the incenti!e to wor$ further towards reaching
their aims and ob(ecti!es.
Kasim Axel Maqsood