Analysis of the Sony Mobile Brand - Case Study Example

Analysis of the Sony Mobile Brand By Introduction The Oxford Brokers is a consultancy company that has been in existence for the last twenty-seven years. The objective of the company is to completely leverage of one’s brand through aligning all factors of the business with it and unlocking the entire potential of the product. The company envisions, evaluates and executes ideas on behalf of other companies in a bid to help them recover their lost customers and reputation. The company belief that one’s brand is his or her reputation and thus it must be maintained at all levels. It is the anticipations that consumers have about a company that keep the company in operation. Thus, Sony approached the right company in its rebranding objective since it has many consumers who have high expectations about their brands. Re-branding Sony through the Oxford Brokers is a great idea because the consultancy firm has a significant reputation of realigning brand aspects and reintroducing it into new markets. The company has a means of repositioning existing corporations into significant heights of success. Thus, Sony has got the right partner to reintroduce its brand name in the UK markets. Part One: ANALYSIS Sony is an international conglomerate company and the planets major media corporation. Its principal business businesses comprise the Sony Corporation-the Sony Electronics in the U.S., Sony Computer Entertainment, Sony Pictures Entertainment, Sony Erickson, and Sony Financial Holdings (Aaron, 2009 p. 13). Sony is also a major producer of electronics, communications, video, and information technology items for the customer and the specialized markets. Theses make Sony grow to be one of the most inclusive entertainment conglomerates in the planet. History and culture The present Sony Corporation has an exclusive culture that is resolutely ingrained in her history particularly in connection to her two creators, Akio Morita, and Masaru Ibuka. Morita and Ibuka were both committed engineers in the line of electronics, and mastermind beyond their business gifts (Aaron, 2009 p. 15). The duo provided visions and insights concerning what the company should create and how it should be developable. Ibuka, particularly, offered invariable advice and propositions to the engineers concerned in the plans from the previous transistor radios to the development of the Walkmans. This fashioned the umbrella approach in which Sony functions under where the senior leadership, in particular Morita, Ibuka, and now Norio Ohga provided the universal course in which the subordinate engineers dynamically cultured, developed and enhanced by the vision or the idea (Ajit, 2010 p. 23). Combined vision and emphasis on human capital, which is emblematic of lots of Japanese companies can be evidently seen in the mission declaration "Management Policies" (Alex, 2009 p.40). Vision, Mission, and Values Since the companys inception in 1946, Mr. Ibuka developed the basis Prospectus, a document outlining the assignment and the principles that the company should uphold and base its operations (Lesile De, 2010 p. 34). The primary section was the ‘Purpose of the Incorporation that was separately into the subsequent eight points: -To develop an ideal company that emphasizes on the spirit of autonomy and open-mindedness -To rebuild Japan and to elevate the countrys civilization through active technological and industrialized actions; - To punctually apply extremely advanced technologies those were available in a variety of departments throughout the war to ordinary households; - To rapidly commercialize superior technological findings in universities and research organizations that are worthy of applications in ordinary households (Lesile De, 2010 p.45) -To bring radio communication and similar tools into the ordinary households and to endorse the employ of home electric applications; -To dynamically take part in the rebuilding of the war-damaged communications systems by offering the required technology; -To develop superior quality radios and to offer radio services that are suitable for the coming novel era; and - To encourage the discipline of science among the universal community. Sony Merchandise Sony has a variety of products that range from electronics goods, entertainments and games. The Sony merchandise can be classified into the subsequent main classes: Projectors and televisions Home Audio Home video Home theatre System Digital photography Hand cam video camera Computer tangential moveable audio Game In-Car entertainment Mobile phones Storage and recording media Batteries and chargers Other accessories Internal Analysis Sony has developed to be a customer-electronics corporation since 1946. At the threshold of the much expected globe of complete digital convergence, the electronics manufacturer turned communication and media massive appears to have it all for the subsequently generation internet-conscious tools Marcus & Marcel, 2010, p. 34). The company has a compelling content to support them, a vibrant culture of innovation resulting from cutting-edge survey and development as well as a world-class promoting acumen that has developed Sony to be a world megabrand. The potential core competency of the Sony Corporation is in the subsequent internal analysis: Accounting Ratio Analysis The companys operating proceeds margin in the year 2002 was merely 0.018 with profits on shareholders equity providing a miserable 0.006 (Sandra, 2008 p. 28). The returns on the assets indicated a 0.002. These poor outcomes demonstrate that the corporation had not managed particular aspects of its functions well and, therefore, incapable to attain standard income. The companys debt-to-asset ratio in the previous two years was high and increasing moderately putting the corporation at great risk in case the creditors demanded a refund. Financial Resources The companys net sale of US$53 billion for the business year 2001 is a record high of all times. Nevertheless, the operating proceeds of US$1.01 billion earned in the same calendar symbolize a forty percent subtraction compared to the preceding years figures (Sony, 2008 p. 46). This emphasizes that Sonys proceeds margins are seriously eroded. However, being a corporation that is gifted with a massive reserve, Sony has the essential financial capital to go on with building a broad global infrastructure that offers its conglomerate consumers with the variety that is worthy. This is almost certainly a competitive tactical lead that any novel entrants to the marketplace cannot provide. Corporation structure Having a continued expansion and achievement, Sony assumed a strategic business unit type of the multidivisional system to execute its related, connected diversification approach (Robert, 2009 p. 89). The corporation is widely separated into six SBUs, with each further subdivided into minor units, shared and commonly referred to as divisions. The divisions relate to each other in the nature of items or makes or both. A typical SBU headquarters practices are monetary and policy controls above its SBU (Robert, 2009 p. 67). The SBUs nature of multidivisional settings IS a suitable match to Sonys approaches as its inherent benefits permits the company to manage diversifications many demands better. Physical Resources Despite an already extensive domestic and international business infrastructure, the company persists to invest greatly in infrastructure. The investment is meant to enable Sony have sufficient ability to meet the mounting requirements and demand of their consumers. By 2003, Sony owned fifty-five manufacturing plants upon shutting fifteen plants across the globe (Arnoldo, 2010 p. 78). On top of that Sony has twelve home-grown manufacturing based plants in Japan. Technological resources Sony was the initial company in some areas such as the Walkman, Trinitron, Camcorder, the Compact Disk and many other that are still creating their markets up to date. Sony patents it is ground-breaking inventive that comprise the brand name ‘walkman and the videotape ‘beta film system. Technologically, the company is more advanced in developing customer-electronics items than its rivals in the business (Hellen, 2005 p. 78). In short, the companys strength also concerns the ability to control on technologies well and in advance of its rivals to generate inventive and superior quality gadgets for its consumers to augment sales and proceeds. Human capital management Sonys formal website emphasizes that the development and the vitality of the companys workers drive the dynamic expansion of the business (Chang, 2011 p.90). So far, the company can offer inclusive training to its workers to enable them poses superior skills and knowledge. On top of that the corporation gives programs that are tailored to local requirements for managers and engineers. In brief, human capital arrangement, more so the capacity to inspire and enhance the productivity of the employees is the companys strength. Originality Resources Originality is one of the two core pillars of the Sony business- promotion is the other pillar. The innovation pillar came into existence through the founders of the establishment who through their corresponding abilities and passionate leadership set the basis of a true culture of a novelty at Sony. The capacity to constantly invent and develop revolutionary innovations that boost sales and help widen proceeds indicates that the company possesses considerable quality modernism resources that are difficult to emulate and that are worthy (Jacky, 2008 p.98) Risk control The nature of risks that the company faces comprises cost risk, pure risk, and credit risk. Initially, Sony bought insurance policies to reduce or lower pure risk (Jon, 2012 p 56). Subsequently, the company employs several derivative apparatus such as foreign exchange forward agreements to hedge the possible shortcoming risk on the money flow from the regular course of an industry that results from market variation (Jim, 2012 p. 67). EXTERNAL ANALYSIS Political Government strategies are a significant drive for the prowess of almost every nation on the planet. In the later area of the 1990s, there was a mounting deregulation and privatization of the customer electronics as well as technology and media plants across the globe. It was noticeable that the majority of the nations developed open trade agreements as others reduced the entry to overseas direct ventures (Chris & Stephen, 2008 p. 92). Economics The era of globalization in the 1990s has the interconnectedness of the different markets, thus resulting in the emergence of the global manufacturing markets. Consequently, it permits a wider access to foreign merchandise for customers and corporations. In spite of the openings of the age of globalization, the entire prospect does not look promising in the closer future as it is dampened by the influence of the recession (Reinner & Joseph, 2013 p.78). This is possible to influences Sonys sale and proceeds unconstructively. Socio-cultural and Demographic A research by Godman Sachs indicated that sixty percent of the Americans played film games and that sixty-one percent of those were adults (Khanh, 2009 p. 88). Similar patterns were observable in Japan and Europe. This provides a chance for all technology and media corporations to augment their incomes by providing innovative goods and packages at reasonable costs. Demographically, the planets population stood at five billion as of 2002, and it is anticipated to rise (Khanh, 2009 p. 78). Technology Novel packages such as the internet telephony and the growing employ of telecommunications give Sony the chances to control on novel technologies and amplify sales. Additionally, e-commerce and Internet-related dealings are other areas that the company can take advantage of and augment its revenues (Khanh, 2009 p.69). Stakeholder Organization Through a developed set of public association protocols, Sony employs a wide set of communication dealings that are utilized to develop and maintain favorable associations with the various stakeholders. The stakeholders comprise workers, shareholders, providers, instructors, media and potential investors (Domicity, 2009 p. 89)). Stakeholders who require any data about Sony have the ability to retrieve it gladly from the corporations website. In this manner, the company creates a podium for a mutual association with its stakeholders that includes serving the wants and the demands of the consumers. The companys resounding achievement with the PlayStation also spells well of its capacity to meets the anticipations of its business associates and consumers (Michel, 2009 p. 90). Besides, the company strives to develop strong associations with the government organizations and officials as well as the community. Competitor analysis Sony begins facing augmented competition not only from an established set of competitors but also novel opponents as subsequent: BUSINESS CATEGORY Computer developers Net-work apparatus builders Software creators Media corporations Game developers Photographic-tools developers Mobile phone manufactures COMPANY Dell, IBM,HP, Apple, and Samsung Cisco, and 3com Microsoft and Sun Microsystems AOL-Time Warner and Vivendi Universal Nintendo Kodak and Fuji Nokia, Motorola, Samsung Part Two: STRATEGY Repositioning of Sony into the UK markets through the help of the Oxford Brokers is an idea that will help the company recreate and rebrand itself to attract new consumers. The rebranding of the company will have to place the consumer at the forefront and target to build the products from the perspective of the consumer. In the present day sophisticated corporations, customer-centric promotion is something not merely practical but applicable as a badge of honor. Getting closer to the consumer to the customer should be the approach that Sony should adopt in its repositioning strategy (Lesille, 2010 p.8). It is getting closer to the customer that the company will have the ability to develop imaginative solutions to its customer requirements. They should seek to comprehend the needs of the consumer4s to comer with innovative and original brand products in the emerging market of the UK. The following three approaches can help Sony position itself in the emerging markets in the United Kingdom market. They comprise: Maintaining the leader position in product innovation and quality Sonys strategy of actualizing what others have failed to execute has paid off in the nature of outstanding products that persons desire. In their repositioning agenda, the company will have to come up with trademark products that are consumer-centered and that have the customer at heart at all times (Lesille, 2010 p. 12). Sony should have the determination to follow the consumer wherever he or she goes by developing innovative goods that satisfy the electronic needs of the 21st century consumer. The company’s significant strength should lie in the knowledge of what the consumer wants and not what the Sony wants. In the course of history, Sony inventiveness has grown to be part and parcel of conventional culture with the capacity to attract the imagination and improve people existence. In current times, the company goes on fueling the business growth through the sales of ground-breaking and eminence items such as the digital cameras and the VAIO notebooks. Moving ahead, Sony should go on upholding the market leader position in product innovation and quality through strong R & D, original employ of the novel technologies and greater marketing insight (Helen & Derek, 2005 p.102). Sony should apply this nature of positioning since it has the great potential than the other positioning. This is because this positioning is customer-centric and not company-centered. The company should stop paying attention to the competition in the industry and start following the customer requirements. Modern brand promotional companies increasingly look to the customer for leadership across the board, and so should Sony (Helen & Derek, 2005 p. 7). Their reputation in innovation has always had the customer at heart and they should expand their innovation and center them to the consumers in the UK market. The companys persistence in innovation and quality should be applicable in attracting more customers thus enlarging its sales in the UK market. Sonys ability to come match the requirements of the ever evolving world will make venture immensely and successfully in the UK markets. The Brand Pyramid Sony uses the pyramid of CBBE in its operations to give the road map and direction in developing a brand construction. The model presents a benchmark through which brands can evaluate their development in brand construction efforts and management for marketing study initiatives. The appliance of the CBBE model also offers the quantitative procedures in building product efforts. It also entails planning, executing and understanding of brand strategies. The pyramid takes the product through four stages and Sony should apply it in its positioning in UK. Sony should ensure that the consumer can recognize the brand and associate it with a class; institute the entirety of the product for the consumer to comprehend the brand comprehensively; develop the consumer’s view concerning the brand; and nurture a dedicated and dynamic association between the consumer and the brand name. Invest in Broadband system Sony is a company with convergence at its very hub. Led by an integrated industry model, the Corporation is well positioned to bring novel gains to its customers by combining hardware, software, services and content. Moving ahead, the company plans to persist to venture heavily into the broadband system so as to permit a completely new type of entertainment. The new type of entertainment includes products such as digitalized films and music as well as Internet substance and games to be available the world over. The launch of the Sonystyle.com is an example of the future that Sony is developing for the emerging markets. Reinforcing the brand standards and promoting a world-class product The phenomenal strength of the Sony brand international is certainly an authentication to the corporations reputation for developing pioneering items of outstanding quality and worth. Sony observes brand variety to link with consumers across a variety of lifestyle segments. Moving forward, the company should further strengthen its brand name by developing exclusive products that fit the lifestyle of each and every individual in the emerging markets. Part Three: IMPLEMENTATION Mission: To provide brands that do not simply command reverence because of their worth but because they add worth to the eminence of existence. Mission: To prioritize inventiveness and distribute capital astutely while guaranteeing team buy-in and to provide a closely controlled means to sort through thoughts to discover the most practicable resolutions that will deliver most favorable results. Values: To develop an ideal company that emphasizes on the spirit of autonomy and open-mindedness, in which engineers with genuine inspiration can practice their technological proficiencies to the maximum level. Internal Brand Management Well-managed brand names leads to respected status and constructive reputations leads to significant financial returns. Stakeholders develop to respect strong brands thus the Sony should manage its brand name in the UK strongly. In the time-pressured market in the UK, the company should consistently deliver consumer satisfaction brands. Such a move will make their customers reduce their explore activity and abdicate to choice over a low bunch of trade names per category. A brand name is the net current worth of the cumulative confidence that the owners’ past promotion efforts have gained from customers (Helen & Derek, 2005 p. 6). Thus the company will offer an innovative brand in the UK market to earn the trust of the consumers. Through well-envisaged and efficiently managed brand names the corporation will be able to develop positive reputations that will enhance the confidence of the employees, purchasers, and users. Influential brands will enable the company position itself in the dominant positions in the UK market and maintenance of its reputation. Consumer trust develops as a result of constant brand connections characterized by constancy and an insight that the brand cares for the consumer; thus Sony should implement constant brand connections with its clients. Products do not simply command reverence because of their worth but they earn respect since they add worth to the eminence of existence. Therefore, Sony should implement a strategy of innovating product that makes life worth living to the UK consumers. The company should hire personnel whose values concur with the values of the brand name (Helen & Derek, 2005 p. 7). They should come up with personnel enrollment policies that place substantial emphasis on hiring personnel whose value match with the brand names standards. Training of the personnel can improve the capacity of the staff to provide the operational values thus recruitment strategies should be founded on alignment between personnel and brand standards. Thus brand management should not only pay attention to the products but also to the staff since a balanced perspective will enable the company succeed in the UK market. Conclusion In conclusion, Sony is a giant developer of electronic gadgets, and should always operate to remain the principal leader in the business. The companys brand is renown all over the world, and almost everyone covets their products. The outstanding brand name has attracted the company many consumers and their outstanding products bringing them many investors. The company should further its innovative nature and maintain the excellent quality of its products to remain competitive in the emerging markets. Sony should work to employ the best workforce in the market and maintain its culture and code of conduct if it has to remain relevant in the ever evolving business globe. References Aaron, F. 2009. The Story of Sony. Smart Apple Media Publishers: New York. Ajit, C. 2010. 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