6.89 Sony is one of the most famous electronics brands known across the globe. Ulijn, Jan et al (2000), “Innovation, Corporate Strategy, and Cultural Context: What is the Mission for International Business Communication?” in The Journal of Business Communication .Vol. 3-Month Ownership: 3.0 swot analysis of sony incorporation SWOT analysis (Strength, Weakness, Opportunities, Threat) is a management appraisal tool useful in weighing how the internal and external variables surrounding an organization influence its ability to compete and successfully operate to maximize its objectives and goals . Hire a subject expert to help you with Sony: SWOT analysis. The BrandGuide section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2800 brands from over 20 industry sectors. The challenge of maintaining the market leadership for the Sony organization, in the mist of rivals who have quality products that can compete favorably with Sony’s problem. Sony Music is one of the biggest four record companies, ranked as the second biggest global record music companies. Strength Electronics - Sony is a well-recognized and respected brand with consumers, and its products cover a wide spectrum of the entertainment and industrial markets Threats Electronics - new entrants are threatening sony’s position due to the industry shift from analog to digital technology. The company has expanded its product and services from cameras and … The challenges facing business is how to strategize to curtail these changes. New York, Rowden, R.W (1999), “Potential Roles of the Human Resource Management Professional in the Strategic Planning Process” in SAM Advanced Management Journal. The SWOT of SONY will help to comprehend the position of SONY … Sony Inc with its diverse business units in the entertainment and technological-electronics industries is a force and leader to reckon with. As most of you know Sony is one of the world’s leading electronic companies. Following are the Opportunities in Sony SWOT Analysis: 1. Others includes, Sony Eriksson series of mobile phones,  Sony Video cameras, Sony Refrigerators, Sony DVD players, Sony VCD players, Sony world receivers, Sony Decoders, Sony Camcorders, Sony Fans, Sony Air conditionals, Sony laptop computers etc. Leadership is significant in attainting and maintaining market leadership. The operating of a tight financial regime for each of the business unit do not allow flexible financial flow in between for instance the entertainment unit and the electronic unit of the Sony organization; Thus, alternative strategies need to be put in place to augment the operations of the Sony organization. The company is maintaining its market leadership because of the continuous innovation of new products, especially in areas of its electronics. Sony is known as a pioneer in its field with offerings ranging from electronics, music, computing, gaming, semiconductors etc. In Sony SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. ROE: The approach needed to resolve the integrating challenge of Sony Inc is for the organization to adopt a portfolio streamlining strategy. 7-Year The Leadership approach adopted in Sony Inc is a participatory leadership style where workers and subordinates input to the strategic management of the organization are welcome and observed. Read about PlayStation 4 SWOT Analysis. Peter (2005:7), argue, “Dynamic in nature, the strategic management process is the full set of commitments, decisions and actions required for a firm to achieve strategic competitiveness and earn above average returns”. This SWOT analysis examines the strengths, weaknesses, opportunities and threats for the consumer electronics segment of Sony. The success in strategic alliance and merger formation for Sony Incorporation is reflected in its corporate merger in the entertainment unit of the corporation with BMG. 0.0230 Revenue: Also performed is an analysis of their e-marketing strategies. Introduction Sony Corporation is a multinational corporation headquartered in Minato, Tokyo Japan. Cost of Capital Est. The competition level in the electronic and technology industry is very high and thus requires effective strategy and continuous innovative products creation for and firm to curve a niche and operate successfully. To sustain and maintain a leadership role in the Sony Incorporation where vibrant leadership will effectively build the right structure that would make it stand amidst uncertainties in the industry and the dynamics in innovation creation as relating to electronic and technology development. Retrieved from https://phdessay.com/sony-swot-analysis/. The most challenging task facing Sony organization is its inability to adequately integrate the vast business portfolio is operates. Higher marketing expenses for media networks and motion pictures: Being in the Media network and motion pictures business, Sony Corp incurs a large marketing expenditure. Vol. KR - NYSE (11/1/2007): Save time and let our verified experts help you. 64, Issue 3. -0.08% Swot Analysis for Sony 1893 Words | 8 Pages. Plethora electronic products and technological gargets are the delight of customers patronizing Sony electronic and technological products. This has led to reduction in investment proceed for the organization shareholders for the last years till 2006. With this financial improvement Sony’s shareholders stand a better chance of ripping financial rewards in the next profit declaration at the financial end of year. This has given Sony the right environment to continue to expand and create new products. Financial loose in shareholder fund is cased by the cost reduction strategy and job cut embraced by Sony Management. Since the company operates in a variety of segments in the global market, the area of analysis is broader than usual. However, it makes its revenue from game licensing and add-ons … On the organization is implementing cost reduction strategy. Sony recorded consolidated annual sales for the year amounting to approximately $70.3 billion. -0.6974 (1996), “Achieving Simultaneous Cost and Differentiation Competitive Advantage through Continuous Improvement: World Class manufacturing as a Competitive Strategy” in Journal of Managerial Issues. 3.26 Stringer comment “I cannot allow the generosity of Sony’s [culture] to resist certain changes. As we’ve seen in the SWOT analysis of Sony, Sony has a powerful brand thanks to its history of creating new, unique, and high-quality products. Strategy is about making choices and weakness are the areas where a firm can improve using SWOT analysis and build on its competitive advantage and strategic positioning. Here, a provision should be put in place where financial flexibility should be made to cut across the two independent organizations. In Japan where most of the electronic productions are done, the government their have created the conducive environment for the electronic industry to thrive. Furthermore, there is the problem of maintaining adequate top executive that would drive the organization into higher heights and maintaining its market leadership place. Below are the Strengths in the SWOT Analysis of Sony: 1. This article has been researched & authored by the Content & Research Team. Furthermore, the synergy and strategic alliance to keep the Sony organization to have a breakthrough in innovation and continue to maintain the lead in product creation and innovative and unique technology that would keep it ahead of other rivals is needed. Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. In terms of Weaknesses, Sony struggles with high price tags and a poor presence in the smartphone market. We are now going to carry out SWOT analysis of PlayStation 3 vis a vis Singapore. Furthermore, the electronic business units of Sony are highly diversified. SWOT Analysis is a proven management framework which enables a brand like Sony PlayStation 3 to benchmark its business & performance as compared to the competitors and industry. Firstly, Sony owns quality music and pictures, which can help it to promote most of its electronic products to consumers. 2. 0.0223 Haven’t found the relevant content? Book Value Per Share: -0.17% For projects that are very viable for the furtherance of the organization growth and enhancement of its effective operation. can use them for free to gain inspiration and new creative ideas for their writing assignments. Altman Z-Score Some of the key weaknesses of PlayStation are: Pricing: Sony has priced PS 4 much lower than its variable cost primarily because the launch was timed along with the launch of Xbox. For the first quarter of 2007 between January and March, the organization losses widen by 66.5 billion yen (about $578 million). It is thus, recommended that the Sony management adopts a strategy of portfolio streamlining; where its business operations are coordinated and structured for easy integration. This and many other strategic alliance and synergy formation has really sustained the leadership role of Sony Inc. for instance; the super chip in Sony PlayStation 3 is developed through the partnership formed by the organization with International Business Machine (IBM). According to Porter (1985:41-44), an organization can either gain competitive advantage through cost effectiveness or through product differentiation. http://moneycentral.msn.com The positioning school exhibits a strategic human resource management. WACC(BT): For Sony to maintain a market leadership in the electronic industry it needs to introduce new technology and electronic gargets and maintain a strong and effective research base. This can be used by Sony, and will involve the identification of its internal Strengths (S) and Weaknesses (W) followed by the identification of the Opportunities (O) and Threats (T) it faces in its extensivelyrnal business environment. Counterfeit goods which compete directly with premium brand like Sony. The lack of innovative strategy that would be difficult for rivals to copy has made the competition a stiff one for Sony to break out from, as observed in the industry. 10-Year SWOT analysis is a vital strategic planning tool that can be used by Sony managers to do a situational analysis of the company . The problem militating against Sony electronic and technology business units include. Brown, S.L. The adopted strategy for Sony has not made the organization to continue to maximize the best out of its vast resources. SWOT Analysis is a proven management framework which enables a brand like Sony to benchmark its business & performance as compared to the competitors and industry. 65.4% of these were derived from sales from electronics (Jehad, 2008). The feet that Howard Stringer has attained in leading the Sony organization and entertainment unit in US had made him the right choice for leading the Sony electronic business unit in Japan. Beta The different products of Sony Inc are recognized as durable and qualitative. The dynamics of contemporary business operation requires that constant innovation and introduction of strategy that could not be easily imitated be put in place. The diverse operation of the Sony Inc has made the organization have the challenge of integrating its operations and diverse portfolios to obtain better services and products for its customers. External factors like taxes and changes in law in various geographies, 3. Strategic human resource management (SHRM) is a management theoretical approach where subordinate workers in an organization are given the chance to contribute to the strategic initiation and implementation in the organization. -0.6997 ROA: I… 8, No. Sony has many close rivals in its electronics and technology business operations that would make doing business difficult and tasking. The Sony Inc has business unit pning in the entertainment industry and in the technological electronics industry. This goes a long way to stand as a motivational factor to workers. Workers of the organization tend to implement more effectively those strategies they have input. 81% Putting this into practice would make an organization stand to curve a niche over its rivals and competitors. Investment Recommendation: Overvalued; Sell 11/01/07 The SWOT analysis of Sony indicates the strengths of the company with which it is good at and what distinguishes it from its competitors, its weakness that prevents the brand from performing well and where its focus should be to improve its brand value. Sony has vast collections of products, which has to do with any household and industrial electronics and modern day technology. With the macro environment, analysis showing a favorable operating environment for Sony leadership issue and strategizing for improvement is significant for the sustenance of Sony leadership in the electronic industry. In the industry where Sony Inc operates both in the entertainment and the electronic and technologies have are many rooms for firms to compete. This require the matching of manpower to other operational resources and maximizing the utmost productivity from the organization’s vast resources Weaknesses. The management should not wait until uncertainties culminate into a surmounting problem, but should carry out scenario planning to nip problem in the bud before they start manifesting. Weakness. Thus, workers participation in the advancement of the organization’s growth is encouraged. Financial. According to Kageyama (2006), “Sony shares have lost nearly half their value over the last five years, as June 22nd, 2006 the Sony share had a increase to stand at 4,940 Yen ($43)”. This has made it difficult for the company to curve a niche for itself. Pp 22, Saleh, Jehad  (2008) “Dubai International Capital's Global Strategic Equities Fund Acquires Substantial Stake in Sony Corporation” Dubai International Capital http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104;STORY=/www/story/11-26-2007/0004710782;EDATE= (23/01/08). The integration and transition of resources to the different business units becomes very difficult. WACC(AT): 7.75% Boston, Mass: Harvard Business School Press. 2003 -1.21% In the organization’s electronic business portfolio includes Sony Ipod, Sony Plasma screen TV (among several Sony TV with 14, 21, 32 Inches), Sony Mega screen TV, Sony Irons, Sony VCD Machines. -1.29% This is discussed more in the recommendation section of this write up. -0.724 Hire a subject expert to help you with Sony PlayStation: SWOT Analysis. The “combination of. On October 19, 2006 the Sony Corporation presented the world with their marketing campaign for the Sony Cybershot, a new digital camera.In the advertisement you see Michelle Wie, an up and coming Asian female golfer, sitting in a cross legged Zen like position on a golf green with a golf ball in one hand and a Cybershot camera in the other. This includes engaging in workers participation in organization strategic management that would result in innovative operations and product differentiation. 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