Strategic Analysis Of

Sony

Presented By:
Chand Mohd
MBA-1st Year
14HM07

Overview

Introduction
Vision, Mission
Core Values
Value Chain Analysis
Porters Five Forces Analysis
SWOT Analysis
Environmental Analysis
Competitive Analysis

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.

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

Vision and Mission

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

Core Values
Elevation of the
Japanese
culture
and national status.

Being a pioneer not

following others; doing
the impossible.

Encouraging individual
ability and creativity.

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.

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.

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.

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.

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.

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.

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.

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.

Porters Five Forces Analysis

Threat of
New
Entrants

Bargaining
power of
suppliers

Intensity
of
competitiv
e rivalry

Bargaining
power of
customers
(buyers)

Threat of
substitute
products
or services

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

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

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 BluRay.
Substitution like music download or streaming cause an effect on Sony
recording music industry.

HIG
H

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.

HIG
H

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

SWOT Analysis
STRENGTH
Innovation
Quality
Brand Strength
Product Differentiation
High Specialized Integrated Product & Services

WEAKNESS
Maintain Multiple Function
Product Pricing
Battery Efficiencies

SWOT Analysis
OPPORTUNITIES
T.V Category & Gaming Segment
Investing
Network Initiatives
T.V Business expansion
International Market

THREATS
Competitors Competition
Global economic Recession
Electronic Network Security

PEST Analysis

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.

General Competitors:

Samsung
LG electronics/LG Mobiles
Panasonic
Philips
Micromax
Nokia
Motorola
HTC
Nikon
Canon
iphone

Thank You