Strategic analysis of sony

1. 1. Strategic Analysis Of Sony Presented By: Chand Mohd MBA-1st Year

14HM07

2. 2. Overview Introduction Vision, Mission Core Values Value Chain

Analysis Porters Five Forces Analysis SWOT Analysis Environmental
Analysis Competitive Analysis

3. 3. Introduction Sony is a Japanese multinational conglomerate

headquartered in Tokyo, Japan, started in 1946, founded by Akio Morita.
Sony is one of the leading manufacturers of electronic products for the
professional and consumer markets. Sony is ranked 94th on the list of
Fortune Global 500. Sony has 140,900 employees globally. Sony had a
global revenue of $74 billion in FY2014.

4. 4. Brand Overview Product Range of Sony: Sony Laptops/Ultra book Sony

Music System Sony Mobile Phones Sony LED/LCDs Sony Cyber
shots/Handy cams/DSLRs Sony Smart Watch Sony PlayStation Sony
Headphones

5. 5. Vision and Mission Mission To experience the joy of advancing and

applying technology for the benefit of the public. Vision To become a
leading global provider of networked consumer electronics, entertainment
and services.

6. 6. Core Values Elevation of the Japanese culture and national status.

Being a pioneer not following others; doing the impossible. Encouraging
individual ability and creativity.

7. 7. Value Chain Analysis Sony is committed to conducting its operation socially

and environmentally responsible manner to supply product out of the
premises into the hands of customer.

8. 8. Primary Activities 1. Inbound logistics Getting raw materials should be

done in effective and efficient manner to increase productivity in production
sector. The raw material should be as safe as possible to environment to
make Sony as respectable environmental productivity to gain customer trust
and interest. Sony should also ensure that they have a warehouse in the
production sector to avoid shortage of raw material. 2. Operations If the
planning is followed in inbound logistic, the operation can be increase. Mass
production should be implement and on continuous basis to produce more
product. Improvement must be done from time to time to eliminate waste
of process, waste of time and waste of cost to add value to final product.
9. 9. Primary Activities 3. Outbound logistics By creating a warehouse in
production area, Sony can increase production and place extra amount of
finished good to be delivered to customer. 4. Marketing & Sales Increase
sales by delivering and sharing corporate value. Using attractive and utilize
new information technology to increase popularity and increase sales. Make
a difference and do Customer focus by targeting lower middle income to high
income customer. Improve and be excellence in rebranding and
management.

10.10. Primary Activities 4. After Sales Services Warrantees and guarantees

should be attend in fast and efficient manners. Sony should have a repair
centre and authorized distributors for service. By setting up online help and
call centres, Sony can help increase customer trust in purchasing Sony
products because they knew that Sony will provide excellent after sales
service.

11.11. Support Activities 1. Procurement According to Sony.net May 2003, Sony

management policies is concerning dealing with supplier categorize under
headings of Fair Procurement. These policies are heading for equal chance
of business to suppliers. Also to increase good relationship amongst
suppliers. Sony strictly meet expectation of customer by adheres to laws,
regulations and standards from countries that they are making business with.

12.12. Support Activities 2. Technological Development With the founders'

doctrine of "Do what has never been done before" and "Always stay one step
ahead, this means Sony needed use new technologies in order to support
value chain activities. With the help of jig or custom-made tool used to
control the location and/or motion of another tool will help to increase
productivity and support to delivering product to customer.

13.13. Support Activities 3. Human resource management Sony could start by

being the most likable company to work with, by creating happy, safe and
positive environment to work with while reducing high turn over. Training
program should be improved, to make a skill workers and are ready mentally
and physically for their responsibilities in the company. Attraction benefits,
career and advancement opportunities keeps employee stays thus reduce the
turn over or to transfer knowledge to new employee.

14.14. Support Activities 4. Firm Infrastructure Legal should follow compliance

and regulations of the country or state to ensure the products is safe and
follow standards it ease the process of delivering product to the customer.
Quality management to be installed to ensure quality and safety of product,
employee and customer.
15.15. Porters Five Forces Analysis Intensity of competitive rivalry Threat of New
Entrants Threat of substitute products or services Bargaining power of
customers (buyers) Bargaining power of suppliers

16.16. Intensity of Competitive Rivalry Sonys market segment includes

Electronics, Games, Pictures, Financial Services and Joint Ventures. For the
past 5 years, among Sonys existing and potential competitors like Samsung,
Apple, Foxcon and Hitachi. Sony leads market with Bravia line of LCD TV.
They hold competitive cost over the rest of LCD market. The rivalry will not
show any weakening sign in near future. Sony needed to focus on
technological innovation, high end design and product differentiation from
the rivalry. HIGH

17.17. Threat of New Entrants Its not easy to enter because of the cost will be
too high to compete with the electronics giants that already exist. A small
player will also require strong relation with suppliers and efficient
manufacturing processes otherwise they could not produce at low cost.
Sony is currently the 4th rank in The 100 Most Loved Companies by APCO
worldwide and it is also one of the top 10 Best Global Green Brands that
consumers associate with environmental conservation and sustainable
business practices. This may attract consumer to be loyal to Sony brands and
attract new buyer of those who support green product. This is a competitive
threat for new industries to attract customer loyalty to establish brands.
Patent right and government regulation keeps the threat of new entries. LOW

18.18. Threat of Substitute Products or Services Although Sony has tries to

differentiate their products through modern design, high quality graphic and
superior technology. They still have threat of substitute product like iPod
over Sony Walkman, iPad or Android or Tablet Game over Sony PlayStation,
and HD DVD over Blu-Ray. Substitution like music download or streaming
cause an effect on Sony recording music industry. HIGH

19.19. Bargaining Power of Customers (Buyers) Customer have a choice of

electronics product that they want to choose. Beside Sony there are plenty
of electronic business that are doing the same product as Sony like LCD,
PlayStation, Music Recording, Tablets and also Notebook. HIGH

20.20. Bargaining Power of Suppliers There are a lot of company that sells
electronic parts which Sony can choose from. These companies rival with
others to propose with lower price of parts. LOW

21.21. SWOT Analysis STRENGTH Innovation Quality Brand Strength

Product Differentiation High Specialized Integrated Product & Services
WEAKNESS Maintain Multiple Function Product Pricing Battery Efficiencies
22.22. SWOT Analysis OPPORTUNITIES THREATS Competitors Competition
Global economic Recession Electronic Network Security T.V Category &
Gaming Segment Investing Network Initiatives T.V Business expansion
International Market

23.23. PEST Analysis

24.24. Competitive Advantage Competitive Advantage of Sony Sonys

incredible rise in the field of electronics is due to their innovation and high
technology products. Imagination and innovation in the industry. Sony
brand still keep competitive advantage like quality, creativity, employee
synergy.

25.25. General Competitors: Samsung LG electronics/LG Mobiles Panasonic

Philips Micromax Nokia Motorola HTC Nikon Canon iphone