The Key Success Factors for Sony - Essay Example

Sony has also developed a strong product portfolio and also concentrates on product diversification to increase its reach to the end-users and is also attempting to integrate its whole portfolio of devices in a networked home entertainment system to make them more useful for the consumers. It is also trying to strengthen its existing strong brand image and trying to consolidate its market position by market development as well as mergers and acquisitions. Adding to this, Sony's creativity to make inventions, creativity in product planning and production, as well as creativity in marketing, have enabled it to gain an edge over its competitors.

(Wikipedia, 29/08/2008)2. Where is Sony Vulnerable What should it watch out for The market is dynamic and is characterized by unpredictable patterns in terms of customer perception, competitive strategies adding to this the political, economic, social, and technological (PEST) elements of the market environment change continuously; hence there is a level of risk associated with every initiative. Sony should attempt to take calculated risks and continue to monitor the effectiveness of various strategies at a pilot level before implementing them on a larger scale.

It would enable it to take more of calculating risks instead of resorting to the act of gambling in the market. Also, the investments in technological innovations have to be continuously monitored so that it does not incur huge losses in case a product fails in the markets. Sony should try to maintain (1) maintain overall Cost Leadership by producing products at a lower cost than competitors (2) to bring about product differentiation (distinctive, more product features) while selling them at a premium price (3) have market focus on taking decisions on targeting a specific segment of the market or the whole market (Michael Porter, 1996).3. What recommendations would u make to senior marketing executives going forward What should they be sure to do with its marketingSony's marketing strategies should be formulated on the basis of extensive market research in the market and also should take into account the differentiation in cultural behavior of the consumers across regions/ segments.

Strategies should market-tested at a pilot level before actual implementation on a worldwide basis. Sufficient contingency planning should also be made to ensure that the profits are not hampered in case of product failures. In case of innovations in a product line, Sony should try to reach the market before its competitors and also use a creative advertising campaign not only to grab the interest of prospective consumers but also work towards retaining the loyalty of its existing customers.

Therefore sufficient strategic planning and implementation would help Sony pave its path to success. It not only enable Sony to organize their resources (man, machines, money, methods, and machinery) for optimum utilization but also helps it standardize and align processes thus help it combat competition in the market (in terms of their product, price, place, promotion, and packaging) by the use various innovative techniques (Kotler, 2005) based on (1) Understanding the psyche of the consumers and developing marketing techniques to increase sales while having an edge over their competitors. (2) Assessing the strategies of their competitors and developing counter-strategies to win their customers.

Risk, which is an integral component of strategic planning, should be assessed taking into consideration the volatility in the markets as well as the uncertainties in the dynamic marketplace.