Sony Corporation Strategic Marketing Management - Coursework Example

? Strategic marketing management Sony Corporation strategic marketing management Table of Contents Table of Contents 2 0 Introduction 4 1.1 Marketing strategy 5 1.3 Strategic Marketing and Corporate Strategy 6 1.2 Strategic marketing Planning Process 11 2.1 Situational Analysis 13 2.2 Strategic Planning Process: Sony Corporations 18 2.2.1 Political, Legal, and Regulatory Risk 18 2.2.2 Exchange and Repatriation of Funds Risk 19 2.2.3 Competitive Risk 19 3.3 Mission and Objectives 20 3.1 Defining and Formulating Marketing Strategy 21 3.2 Developing marketing plan 21 2.3 Strategy Implementation and control 22 4.0 Conclusion 22 5.0 References: 24 6.0 Appendix 26 1.0 Introduction Sony Corporation is one of the multibillion firms based in Tokyo, Japan. The company is one of the leading world’s electronic firms that deal with electronics, videos, video games consoles, and communications and information equipments for both the customer and professional markets. Sony, a leading firm in the rapidly changing digital appliance industry has continued to explore and establish new markets globally. In addition, the corporation has been dealing with customer electronics from the time the World War II ended. The company with their wide experience and participation in the global market for long, it has enabled the company to grow and become the global company and the wealthiest. The company markets its products and services globally under the famous trademark “Sony”, which is registered in more than 204 countries globally. These subsidiaries both in Japan and those distributed all over the world, has the responsibility of marketing the company’s products and services (Hodgson, 1998, p19). The Sony Corporation has more than 30 Subsidiaries Company in Japan and more than 50 subsidiaries outside Japan. Sony Marketing (Japan) Inc. has the role of sales and marketing of the company’s products. However, the current digital appliance market setting has changed and has influenced the features, which was previously experienced by the Japanese manufacturers. First, the company currently is experiencing the aspect of competition from other rival companies who are fresh in the market. Specifically, the overseas companies and many new companies that excel from given technological advancement or have been experiencing new inventions at entering the market; thus, posing challenge to Sony Corporation. Secondly, company has also experienced the aspect of price fluctuation from technological advancement and competitive dynamics thus influencing the aspect of demand and supply in the world market. For example, when the product prices of HDD rise, the profits of products experience pressure, which cannot be warranted. Thirdly, the company’s products have rapidly become obsolete thus shortening the product life cycle. Apart from internationalizing its products, the promoting the company undertakes marketing strategies the engage on research and development of potential markets globally. 1.1 Marketing strategy The modern theories dealing with marketing strategies emphasize the need for business and companies embrace the modern competitive strategies on the business environment. The theory by Anthony Freeling suggests that there is the need for business to embrace the element of agile, marketing strategy. The marketing agile will enable the company to respond to the issues of market demands without any difficulty. The theories on the marketing strategies need that the companies develop competitive strategies that will allow them compete with other rival companies effectively. According to the modern theories of strategic marketing, the traditional marketing strategies have proved to be slow and laborious in nature thus results in increasing the cost of operations of the company. Marketing strategy is a marketing approach that companies to capture market niche in the consumer environment use that. The business set-up utilizes and employs the use of marketing strategy to gain and maximize the optimal profit potentialities. Marketing strategy ensures that the company or the businesses sells it products and services with less challenges and more courage to meet the perceived competitors in the business environment. The tactical marketing on the other hand employ the use of tactics whereby it studies the trends in the market and then responds to the changes in the market. The strategic marketing carry market research and combines the results then provide the needed response. This will entail laying down strategies needed to respond to the findings of the research. Compared to tactical marketing, the strategic marketing is more effective because it provide lasting solutions to the business in a competitive way. Tactical marketing only produces short-lived solutions. The aspect of market strategy allows the company to use it resources to counteract its perceived competitors in the market. The approach of market strategy ensures that there are considerable approaches used to market the company’s products in well, studied and analyzed environment so that the company can adequately compete and have advantage over the competitors (Hodgson, 1998, p39). Most companies in the world have opportunities where these opportunities are open out the market while others are shared with other companies. The element of success in the market lies entirely on the capability of a particular company to identify the needs of the consumers, and more so the ability of such company to identify such needs as demanded by the consumer. This indicates that companies need to explore those strategies that will enable them to achieve a differential advantage over the rival companies. The differential advantage in marketing strategy is attained via the company’s products and services; however, it can also be attained through other aspects of the marketing mix. In the process of strategy, marketing must fully understand the rivals in the market set up. Having comprehensive knowledge of the potential rival in the market enables the company to develop viable strategies that will employ to gain advantage over the competitors. 1.3 Strategic Marketing and Corporate Strategy The aspect of cooperate strategy and strategic marketing play a key role in the marketing environment because it allows the business enterprise to focus on the strategies of competing well in the competitive environment. The cooperate strategy has enabled the company to meet the demands of their customers thus ensuring they meet the element of customer satisfaction. This will in turn promote the element of strategic marketing where this will boost the customers’ relationship with the company thus increasing the sales of the company. The following are the ways in which cooperate and strategic marketing are enhanced in an organization. 1.3.1. Restructuring the Electronics Organization The company plans to ban the present organization unit (referred as “Network Firm Companies”) and will initiate identified operational systems termed Business Groups for given goods classification. Corporate Officers will be offered precise liabilities at the Electronics Headquarters level to look after cross-divisional works associated to remarkable arrangement, procurement, technology, manufacturing, sales, and marketing that can straightly aid the electronics CEO. The essential framework alteration is modeled to remove the communal silos, which have defended the firm from concentrating to the wide competitive goods and to boost cooperated, successful, and quick decision making. The fresh format will as well allow the administration to prioritize their R&D, placing resources where they will optimize development and evade copying. It will arrange the present format accordingly. The firm’s plan is to chop 200 billion yen in expenses at the fall of fiscal year 2012. The firm will attain this by a reduction in the size of enterprise classification and good designs, rationalizing of the manufacturing sites, and development of extra successful administrative forms through removal of redundancies and overlap within the firm and business procedures. Certain features of the plan include marking 15 enterprise classifications by which the firm will execute strategies comprising downsizing, disposals, and associations. It plans to cut the number of designs by up to 22% related to the fiscal year 2011. We organize to lower the number of production sites by 15, from 65 to 50. The approximated charges for these formal modifications are 210 billion yen, and it anticipates that such charges will be recovered by the end of 2013. Sale of Real Estate, Stock, and Non-Core Assets We will evaluate the stock, real estate, and given non-core assets with a perspective to ensuring disposals summing to 150 billion yen at the end of 2012. 1.3.3. Consolidation our Existing Electronics Trade For electronics, digital imaging, portable audio, and DVD will be the focus places, and will function to set leading ranks with on each market. This will be in cycle with the strategies to reinforce semiconductor and main elements tools enterprises as a force of differentiation. Certainly, we are focusing on a change for the television trade, through rationalizing production areas, raising the ration of globally sourced elements, and localizing engineering tasks. The aim is to be lucrative in television through the second half of the year 2010. Converging Resources on Progression Plan Resources will be converged on HD goods, mobile goods as well as semiconductor or main features gadgets, which may persist to differentiate those goods from the competition. 1. Making the HD World a Major Profit Pillar Sony is currently the international leading firm, and is distinctly well situated to pleasure the expected consumer change to great-statement goods. We have a complete variety of broadcast and client hardware goods, alongside the content property, which result to sector in HD digitization. The company objective is to ensure HD Global crucial incorporated revenue kingpin. Sony has excellent top-end HD technological funds like manufacturing implements in addition to the 4K projector that initiated the period of digital camera. Furthermore, the firm plans to create these and utilize them to its client lineup. Blu-ray disc- an increasingly ability next generation optical disc design aided by most commanding organizations in each main sector will as well be a dynamic push of HD enterprise. Beginning with the initiation of PLAYSTATION 3, the firm will introduce a variety of fresh Blu-ray disc-linked goods and HD across the year. 2. Focusing on Intelligent & Interoperable Products Being a computing power rise, digital audio alongside the visual client electronics are currently working in a linked communication field. With a classically improved CPU at their center, fresh applications are often accessible. Applicants will be in position to prefer operations, which automatically individualize the features on their gadgets and will as well have the power to split content with other applicants on the field. Sony positioning this is a progress part, which will additionally reinforce their plans within the increasing network-accessed goods and submissions 3. Strengthening Technology Development The firm will also concentrate engineering funds on semiconductor and main elements gadgets crucial to increasing value to goods. Main parts in semiconductors will be imaging and games. Within the fundamental elements gadgets sections, we will create an innovative technologies for unit LSIs and coming generation displays alongside Blu-ray disc-linked gadgets. 3. Creation of Home and Mobile Platforms The firm shall operate to create a system LSI, which may be incorporated through a variety of home electronics goods in order to address the increasingly enlarging movement of rich HD features. In pushbike, we as well need to generate a unit LSI for mobile goods to improve their production and cut energy consumption. This will lead to extra effective engineering answers and faster good advancement. 5. Next-Generation Display The firms concentration will be individual-luminous flat board organic light emitting diode (OLED) displays and ensure it introduces a Display Device Development Group, which straightly reports to electronics CEO to trigger growth. 6. Augmenting Software Growth We will considerably reinforce the software advancement to make sure a transitional interoperability and major applicant interfaces through the electronics enterprise and in places like middleware, codec, applications, as well as DRM. As an initial step, we will set a Technology Development Group. This will have an objective of this group, which will be to successfully exploit resources for software growth comprising enlarged resources within China and the US. We are changing into a period where video, music, and games may be supplied on the network and liked on mobile gadgets. In this view, Sony will operate to recover its number of leadership in transportable audio and set a firm position within the fast growing movable video market. The aim is to create goods and services, which allow clients to enjoy entertainment elements “on the go.” Sony Ericson Mobile communication is struggling to create distinct goods, which will leverage the music assets of the whole Sony Team. The Walkman Phone is a significant example of the approach forward. The firm’s financial services section persists to present strong and steady outcomes, sustaining revenue margins that are among the greatest within Sony Team, therefore, adding largely to the form financial performance. Each of the three enterprises – Sony Assurance, Sony Life, and well as Sony Bank persists to compose a remarkable consideration by clients. The past-disclosed IPO strategy has been delayed up to the fiscal period 2008 or even beyond. 1.2 Strategic marketing Planning Process Strategic marketing planning process is a very vital strategy in a competitive business. The strategy is concerned with the companies overall direction and it is concerned with the marketing strategies of the company. a. The situational analysis enables the business management to focus on the direction they are heading and potential strategies they need to survive the ever-changing business environment. b. In the business environment, which is competitive, there is the need to develop viable objectives that will support the key strategies involved in the marketing process. Objectives will provide guidelines and timelines that are needed to attain the aspirations of the clients and that of the company. c. Defining and formulation of strategic ensures that the strategies take care of the competitive nature of the business. This will define the degree of the laid down strategies on the attaining the set objectives. d. There is the element of tactical market that involves the study of the market and using the research results to tactically analyze the market. The capability of the business to attain profitable sale is influenced by numerous environmental challenges, many in which are inter-related. e. Implementation and control in the market situation, ensures that the defined and formulated strategies are executed and managed to meet the requirements of the business. This implementation process should meet the criteria that will enable the business meet the challenges of competition and in a cost-effective manner. f. Evaluation of the outlined strategies plays a key role in ascertaining the viability of each strategy through assessment techniques. 2.1 Situational Analysis Japan has the second biggest economy globally thus presenting a favorable environment for doing the business. The main industries of Japan are real estate insurance, retailing, telecommunication, banking, and transportation. Japan is the heart for new product growth and technological advancements. In the field of technical research, Japan is a principal nation. As the economy is advance, the potential purchasing power of the customers is also improving, so the customers are early adopters. There are high customer prospects from the market hence the urgent requirement to create superior products that can meet the demands customers. The state is also conscious in the issues that appertains the new product expansion and offer assistance to new global business exploration. Japan is governed by law, so the level of corruption is minimum thus providing favorable business environment in Japan. Japan has well developed infrastructural facilities are also exceedingly developed in Japan. Before developing an approach, it is vital to comprehend the prevailing state and expected position of the business. Sony Corporation is a Japanese international company and one of the world’s major media corporations. Sony produces high quality electronic products with the seal of “Made in Japan.” Sony is dedicated to apply exceedingly sophisticated technologies in the diverse segments to accomplish the universal household requirements. Sony avails highly value added commodities in the market to its consumers. 2.1.1 SWOT ANALYSIS Strengths: Human capital is the supreme benefit of the Sony particularly its engineers that form its R&D section. It unifies the best of talents, which create the solid a moneymaking venture. Its job revolving and self-promoting organization gives improved experience to its workers and thereby creates fulfillment. The Weaknesses would comprise having an operating proceeds margin of 2.49% with the total income of $78.40 billion for the fiscal year ended march 31, 2007. The diminishing returns, which originated from the product improvement, are evident. The sky-scraping rate of venture does not correspond to an expansion in the profitability. A lack of broad direction is another weakness of the corporation. The company has inadequate strategy. Opportunities would comprise Sony has the prospect to set the principles and govern the field. Entering sky-scraping technology businesses obtain adequate technology to enhance width. It is also having a prospect to create use of the markets and inexpensive labor of the increasing Asian countries (Barney, 1991, p 71). Threats would comprise the threat of duplication of resources. The products developed by the Sony entail both hardware and software. Therefore, for selling the products, it is indispensable that the essential software should be obtainable in the country. The non-availability of software will generate the largest hazard for the company’s products (Finlay, 2000). 2.1.2 PEST Model The PEST strategy has enabled the company to succeed and compete in aggressive market effectively. The political environment in which the company operates is well stable. This has enabled the company to have constant revenue and profit flow. The stable business environment, which is not affected by political issues, enables the Sony Company to apply its marketing strategies effectively. The Sony Corporation has well stable economic base that enables the company undertake its strategies even during times of crises. This will enable them have competitive advantage over its competitors both the established and the fresh ones in the market. The high customer base ensures that the company maintains their products and services. The high technology and experts has enabled the company produced high quality products as compared to its rival companies. The company interacts with its consumers regularly thus promoting the element of socialization. Socialization with customers enables the company to know the needs of the customers thus able to maintain its customers effectively. 2.1.3 Porter’s Forces a. Competitive rivalry-these potential companies compete with Sony. Sony as multinational company has numerous competitors who produce electronic goods. These companies have not been in position to outweigh the Sony’s well-articulated strategies. b. Powers of buyers-the company have its customers all over the world thus maintaining high customer base compared to its rival companies. The purchasing power of Sony is high due its long-stay in the business environment and high quality products. c. Power of suppliers-Sony in itself is a strong and good supplier. Sony has excellent link with its suppliers thus giving Sony advantage over the other companies in terms of quality and reliability of the materials. d. Threats of substitutes-The company has a wide range of electronic products that a customer can choose from thus cannot be affected by price change. This will enable the buyers to substitute according to their preferences. e. Threat of new entrant-Sony has many companies joining the electronic business; these companies have no experience as compared to Sony who are well established in the industry. Sony company has successfully applied the use of Ansoff’s model in its strategies: a. Market penetration-Sony Company has successfully increased its sales of the existing products and penetrates the market by promoting its products heavily. This is the lowest possible risk strategy. b. Product development-The company has continuously produced new products targeting existing electronic markets by assuming that they will gain more customers and market share. c. Market development-Sony have ventured the development of new products that are aimed at new markets .This will in turn explore and open new markets. d. Diversification –The Company has diversified its market by evolving new products. Sony has diversified its production through the production of diverse electronic products. 2.1.4 PIMS Models PIMS model that stands for Profit Impact of Market Share of Sony Corporation has been very effective means applied by the company. Based on its high market share, the company posts high profits during the end of each financial year. 2.1.5 GE Models The GE model enables entails all the businesses and products that constitute a company. The Sony Corporation has many branches selling varied electronic products. The GE model has suited the Sony Company and has enabled the company to explore business frontiers. 2.1.6 BCG BCG strategic model has enabled Sony to approach and analyze business situations effectively. The company have experienced high market share hence minimizing their costs and eventually getting high profits from their business. The BCG has worked effectively for the company since the model has enabled the company further its profits and growth. 2.1.7 Sony Company has successfully applied the use of Ansoff’s model in its strategies: a. Market penetration-Sony Company has successfully increased its sales of the existing products and penetrates the market by promoting its products heavily. This is the lowest possible risk strategy. b. Product development-The Company has continuously produced new products targeting existing electronic markets by assuming that they will gain more customers and market share. c. Market development-Sony have ventured the development of new products that are aimed at new markets .This will in turn explore and open new markets. d. Diversification –The Company has diversified its market by evolving new products. Sony has diversified its production through the production of diverse electronic products. 2.2 Strategic Planning Process: Sony Corporations Japan has the second largest economy in the world. The major industries of Japan are insurance, banking, real state, retailing, telecommunication, and transportation. Japan is the center for new product development and technological innovations. In the field of scientific research, Japan is a leading nation. As the economy is growing, the purchasing power of the consumers is also increasing, so the consumers are early adopters. There are high consumer expectations from the market so there is a need to develop advanced products that can satisfy the consumers. The government is also aware about the new product development and aid to new global business ventures. Law rules Japan, so the level of corruption is very low in Japan. Infrastructural facilities are also highly developed in Japan. Before creating a roadmap, it is necessary to understand the current state and desired state of the business (Hatch, 1997, p 28). Sony Corporation is a Japanese multinational corporation and one of the world’s largest media conglomerate. Sony manufactures world-class electronic items with the seal of “Made in Japan”. Sony is committed to apply highly advanced technologies in the various sectors to fulfill the common household needs. Sony provides highly value added products to its customers. 2.2.1 Political, Legal, and Regulatory Risk The Government interference in business affairs in Japan are classified under nationalization of industries, taking industries assets into public ownership. These risks consist of confiscation, expropriation, currency inconvertibility, and contract repudiation. The political risk between the Central and Local Government, and the Provincial deal with the applicable laws, this continually makes it very difficult for Japan to know exactly what rules apply at any given time. Japan political risks are higher than any other Country markets because they have a Communist Government. Governments’ agreements with new businesses are contingent upon the company’s willingness to relocate their production to Japan. This enables the Japanese to learn modern management skills from the Non Chinese companies while acquiring new technology. 2.2.2 Exchange and Repatriation of Funds Risk In business regulations and guidelines with Japan, Organizations need to get approval for repatriating profits up to 90% from the Japan based operations. Operations are required to file fourth quarter tax return with the Japan State Administration of Taxation (SAT) to confirm profits amounts before finalizing net profits for their organizations. Wholly Foreign Owned Enterprise (WFOE), reserve 10% of all net profits up to 50% of the companies registered capital. Foreign exchange controls are set up with the State Administration for Foreign Exchange (SAFE). This is to control funds flowing out of Japan (Bowman & Asch, 1996, p96). 2.2.3 Competitive Risk Foreign investors from the US, Europe and Asia has created some of the most intensely competitive markets in the world. Japan competes with many domestic, private, and state-owned enterprises operated by professional and financially motivated managers who quickly respond to market pressures on a daily basis. However, it also hits well-performing domestic companies in the form of unequal bargaining power along the value chain. Local suppliers, as well as the Japanese government, are aware that manufacturers without access to customer knowledge, design capability and export distribution channels capture, on average, as little as one-tenth of total value chain margins. Companies faced with these challenges can be aggressive in seeking advantages by any means (Hamel & Prahalad, 1994). Japanese manufacturers to develop ingenious new low-cost business models, while successful entrepreneurs create large economies of scale and capture market dominant positions in entry-level markets that result in low fixed-cost organizations. Japan will then move on to obtaining knowledge on how to continue attacking more of the customer needs. Complex product systems, work on software and interface improvements that can deliver somewhat lower performance at a significantly lower cost. Market leaders in higher-end markets can be blindsided by companies using the resulting profits to move up the value-added ladder. 2.2.4 Taxation and Double Taxation Japan is a signatory to a treaty to prevent double taxation with countries around the world. Double taxation prevention treaty enables Japan to offset tax paid in one country against tax pay in other countries, which prevent double taxation. Japan’s exemptions or tax at a reduce rate on certain receipts, including: interest, royalties, dividends, capital gains and others that are connected with a transaction carried out between parties associated with the double taxation prevention treaty. When certain income is taxable under Japanese Income Tax Ordinance is exempted under any taxation treaty. The income is taxed according to the provision of taxation treaty (Markidess, 2004). 2.2.5 Distribution and Supply Chain Risk Production and Distribution Operations encounters numerous challenges and risks daily. Each structure of a value chain: suppliers, warehousing, transportation, distribution, manufacturing, are impacted from quality challenges such as transportation, supply shortages and intermissions. Risk management must extent the whole value chain so that the risks can be comprehended, quantified, and alleviated. 3.3 Mission and Objectives The mission statement of the Sony Corporation is “To approach the consumers through highly developed hi-tech products in a variety of fields to accomplish their requirements”. This statement position is that Sony exists to offer inventive and contemporary services to its consumers. The clients also anticipate fairly a bit from Sony that it will present them value added commodities that will improve the value of life and offer a superior solution to their needs. This statement shows the major constituent aspect of strategy and that is the development of business. It also assists to create the policies and approaches for Sony that is dedicated to offer advanced technical products (Hodgson, 1998, p 32). 3.1 Defining and Formulating Marketing Strategy In order for the business owners to effectively define and define business marketing strategies, there is the need for companies to analysis the weaknesses, threats, strengths and opportunities within the business environment. This will enable them to complete well in the competitive market. Alternative approaches and the Selection of the Best 1: The variety of alternatives in front of the corporation is diversification, association and collaboration, cost leadership, incorporation of the invention design and marketing. Amongst the different alternatives, alliances, cooperation, and integration is the best suited strategy for the company. Therefore, the corporation can utilize the alliances for the function of entry into the market for its innovative global venture. This is because such organization will assist in producing mutual benefits and energetic kind of the new principles (Hamel & Prahalad, 1994). 3.2 Developing marketing plan In order to effectively fight for the market share, which is being taken by other electronic companies from Sony, there is a need for contingency plan using the core experience that cannot be imitated by those other companies, which are Sony competitors. This includes diversification if it is necessary for the company to make alliances. Diversification pushes the company to make business supplies a major part of Sony business. This makes it easier for optimum mix realization and enhances the use of core competence in Sony, thus enabling the company to come up sound stream comparative time limited hit products from its experienced unique talented labor force. Going global for Sony did increase its risk in the market industry. Thus they had do educate themselves from the political factors to transportation availability in the new county they ventured in. never the less with risk always come better rewards so long as they ensure they are in compliance with the regulations and conditions in that new country. That greater opportunity leads to being successful. For them to be successful in the global village that they have ventured in they have to stick to their strategies and contingency plan (Markides, 2004, p 11). 2.3 Strategy Implementation and control This principle it supposed to be reviewed form the start that is from the beginning and both the western counterparts and Japanese work portfolio should be included or incorporated. Management should work together and provide a proper coordinated framework for guidance and effective communication for a well-integrated company designs production and marketing. For this reasons a change in the culture of Sony is needed, for the top managers to follow up in that direction. The availability of cheap labor in Japan also necessitates a reduced level of production cost. Control and Evaluation: there is need for development of a controlled evaluation program for effective strategic implementation. This can be implemented by setting performance standards that measures actual performance, evaluation of variances error analysis. By benchmarking, for the purpose of evaluation comparative analysis is made by the firm. 4.0 Conclusion Marketing strategy is a marketing approach that companies to capture market niche in the consumer environment use that. The business set-up utilizes and employs the use of marketing strategy to gain and maximize the optimal profit potentialities. Marketing strategy ensures that the company or the businesses sells it products and services with less challenges and more courage to meet the perceived competitors in the business environment. The tactical marketing on the other hand employ the use of tactics whereby it studies the trends in the market and then responds to the changes in the market. The strategic marketing carry market research and combines the results then provide the needed response. This will entail laying down strategies needed to respond to the findings of the research. Compared to tactical marketing, the strategic marketing is more effective because it provide lasting solutions to the business in a competitive way. Tactical marketing only produces short-lived solutions. The aspect of market strategy allows the company to use it resources to counteract its perceived competitors in the market. The approach of market strategy ensures that there are considerable approaches used to market the company’s products in well, studied and analyzed environment so that the company can adequately compete and have advantage over the competitors (Hodgson, 1998, p39). 5.0 References: “Harvard Business Review on Corporate Strategy” (1999), Harvard Business School Press. Barney, J. B. (1991), “Firm resources and sustained competitive advantage,” Journal of Management, Vol. 17, No. 1, p99-120. Barney, J. B. (2001), “Is the resource-based "view" a useful perspective for strategic management research? Yes.” Academy of Management Review, Vol. 26, No. 1, p41-56. Bowman, C. & Asch, D. (1996), “Managing Strategy,” USA: MacMillan. DeWit, B. & Meyer, R. (2004), “Strategy: Process, Content, Context,” 3rd Edition, Thomson International Business Press. Finlay, P. (2000), “Strategic Management: An introduction to business and corporate strategy,” New York, NY: Prentice Hall. Hamel, G. & Prahalad, C.K. (1990), “Capabilities-Based Competition.” Harvard Business Review, Vol. 70, No. 3. Hamel, G. & Prahalad, C.K. (1990), “The core competence of the corporation.” Harvard Business Review, Vol. 68, No. 3, p79-91. Hamel, G. & Prahalad, C.K. (1994), “Competing for future”, Oxford: Harvard Business School Press. Hatch, M.J. (1997), “Organization Theory: Modern Symbolic and Postmodern Perspectives”, Oxford: Oxford University Press. Hodgson, G.M. (1998), “Evolutionary and competence-based theories of the firm.” Journal of Economic Studies, Vol. 25, No, 1, p25-56. Markides, C. (2004), “What is strategy and how do you know if you have one?” Business Strategy Review, Vol. 15, No. 2, p5-12. 6.0 Appendix SWOT ANALYSIS Strengths: Human capital is the supreme benefit of the Sony particularly its engineers that form its R&D section. It unifies the best of talents, which create the solid a moneymaking venture. Its job revolving and self-promoting organization gives improved experience to its workers and thereby creates fulfillment. The Weaknesses would comprise having an operating proceeds margin of 2.49% with the total income of $78.40 billion for the fiscal year ended march 31, 2007. The diminishing returns, which originated from the product improvement, are evident. The sky-scraping rate of venture does not correspond to an expansion in the profitability. A lack of broad direction is another weakness of the corporation. The company has inadequate strategy. Opportunities would comprise Sony has the prospect to set the principles and govern the field. Entering sky-scraping technology businesses obtain adequate technology to enhance width. It is also having a prospect to create use of the markets and inexpensive labor of the increasing Asian countries (Barney, 1991, p 71). Threats would comprise the threat of duplication of resources. The products developed by the Sony entail both hardware and software. Therefore, for selling the products, it is indispensable that the essential software should be obtainable in the country. The non-availability of software will generate the largest hazard for the company’s products (Finlay, 2000). The PEST strategy has enabled the company to succeed and compete in aggressive market effectively. The political environment in which the company operates is well stable. This has enabled the company to have constant revenue and profit flow. The stable business environment, which is not affected by political issues, enables the Sony Company to apply its marketing strategies effectively. The Sony Corporation has well stable economic base that enables the company undertake its strategies even during times of crises. This will enable them have competitive advantage over its competitors both the established and the fresh ones in the market. The high customer base ensures that the company maintains their products and services. The high technology and experts has enabled the company produced high quality products as compared to its rival companies. The company interacts with its consumers regularly thus promoting the element of socialization. Socialization with customers enables the company to know the needs of the customers thus able to maintain its customers effectively. Porter’s competitive forces a. Competitive rivalry-these potential companies compete with Sony. Sony as multinational company has numerous competitors who produce electronic goods. These companies have not been in position to outweigh the Sony’s well-articulated strategies. b. Powers of buyers-the company have its customers all over the world thus maintaining high customer base compared to its rival companies. The purchasing power of Sony is high due its long-stay in the business environment and high quality products. c. Power of suppliers-Sony in itself is a strong and good supplier. Sony has excellent link with its suppliers thus giving Sony advantage over the other companies in terms of quality and reliability of the materials. d. Threats of substitutes-The company has a wide range of electronic products that a customer can choose from thus cannot be affected by price change. This will enable the buyers to substitute according to their preferences. e. Threat of new entrant-Sony has many companies joining the electronic business; these companies have no experience as compared to Sony who is well established in the industry. Read More