Sony

An Evolution of Technology

1946 1950 1960 1973 1980 1991 1993 2001

The introduction of advancements in video technology

“Blu-ray”.

Established Sony Computer Entertainment .

Renamed Columbia Picture Entertainment to

Sony Pictures Entertainment.

The first compact disc player , the compact

design of the Handycamcamcorder was created. And The acquisition of

Columbia Picture Entertainment.

The first Emmy award for develop the Trinitron color

televisions system.

Created the first portable television.

Created the first magnetic tape and tape

recorder.

Established company.

How would you rate Sony’s ability to create and deploy their strategies?

1

Strategic management the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage.

Corporate Strategies• The strategy of working with rivals on projects of

mutual benefit.

Business Strategies• The strategy for a single business unit or product

line.• Identifies how a division or strategic business unit

will compete in its product or service domain.

Functional Strategies• Guides the use of organizational resources to

implement business strategy. • Guides activities within one specific area of

operations. Marketing Manufacturing Finance Human resources

Management Practices and Systems• A strategy requires supporting structures and

workflows staffed by talented people• Need leaders who can motivate everyone to do

their very best work. Strategic Leadership• The capability to inspire people to continuously

change, performance enhancement, and implementation of organizational strategies.

How would you rate Sony’s ability to create and deploy their strategies?

1

Strategic partnership- Capitalize on its own strengths and the strengths of other firms.- To achieve synergy through the joint venture- The alliance of Sony and Google.

Strategy regarding human resources- Sony realizes the value of human capital and maintain relationship of employees by- Town hall meeting- Employee Opinion Surveys

2

How does the industry in which Sony compete dictate the type of strategy it must implement in order to be successful?

Discussion Question 2

•Technology Industry•Hypercompetitionfacing several direct competitors and competitive advantage tend to be short live.

• Differentiation Strategyoffer products that unique and different from the competitors- Research and development

• Cost leadership Strategyseeks to operate with low cost so that products can be sold at lower price

3

How might Sony plan for the future in the electronics industry? What opportunities and threats do you see coming in Sony’s future?

Discussion Question 3

Sony look not only to existing products but also in new markets where it can advance its position.

In future Sony have trend to entire to new market that have lower competitor or niche market.

Get market share in middle and lower market by reduce price and made diverse product.

Sony brand still keep competitive advantage like quality, creativity and employee synergy.

SWOT ANALYSIS Strength’s:

Innovation

Quality

Brand strength

Product differentiation

Weakness:

Maintaining multiple function

International expansion

Product pricing

Financial service industry

Corporate Governance

Opportunities:

T.V. category & gaming segment investing

Network initiative

International market penetration

Threats:Competitors competitionGlobal economic recessionElectronic network security

+

Research Sony’s competitor and determine the advantages and disadvantages they possess compare to Sony. How might they deal with these disadvantages in order to be more competitive with Sony?

STRENGTH

Samsung Sony LG• Improvement in credit rating.• Diversification as a source of

competitiveness• Strength of telecommunications

businesses• Holds significant market share

in most of the product categories

• The best in terms of design features and technology.

• Samsung brand value increased by 80% in past three years

• Strong Brand Image• Worldwide Reputation• High Market Share• High Quality Products• High Technology• Pioneer in the Industry as Being

Creative and Innovative• Supports R&D Activities• Diversification in Manufacturing

Locations Around the World• Ability to Provide High

Motivation to Its Employees• Loyal Customers

• Market leader in home appliances.

• Has got manufacturing unit in tax incentive .

• Wide range of products to serve all categories.

• Widest distribution network in the industry(47barnches,10000 trade partners).

• Good after sales service offered.

WEAKNESS

Samsung Sony LG• Samsung Securities suffering

from poor profitability• Samsung Mobile launched a

series of Smart phones recently which led to cannibalization

• Samsung is a hardware leader but has too much of dependence for software from other parties.

• Diversifications in unsuitable businesses for itself.

• They insist on their own formats.• Competitively high prices.• International expansion• Picture industry• Sony’s plants located in

inconvenient locations• Too expensive and far away from

consumers• High shipping and long deliver

process

• Samsung being its competitor provides similar products.

• Consumers compare L.G with Samsung its Korean rival not with other global companies.

• Lack of expert operators for complex machines

OPPORTUNITIES

Samsung Sony LG• Investment in Supply Chain• Sale of affiliated companies• International Expansion• Affordable price product• Product variation

Introduce unique and existing product with variety

• Its financial position is strong and there is a scope of entering into unrelated diversification

• Network initiative• International market

penetration• Applied acquisition and alliances

strategy• Focus on emerging market’s

economies• Sony has gained success in India

Market

• Fast growth of the home appliances market

• Shifting to rural areas• Maintaining control over the

market and the highest share in home appliances market

THREAT

Samsung Sony LG• Global economic recession• Strong competition Industry• Regulatory Issues and

Safeguarding of Intellectual Property Rights

• Lower cost competitors in China

• Retail Chains like Big bazaar sell consumer electronics and home appliance in low cost strategy.

• Global economic recession• Strong competition in the

market.• Sony’s products more expensive• Short product lifecycle.• Laws and regulations • Protect environment, human

health, and safety• Imitation of brand name and

technology

• Global economic recession• Strong competition in the

market.• Close competitors like Samsung

are compared to it.• Price war with Samsung.• Competition from Indian brand

and other foreign brands.

DISADVENTAGES

Samsung Sony LG• Cannibalization

a situation where a new product "eats" up the sales and demand of an existing product.

• Samsung is a hardware leader but has too much of dependence for software from other parties.

• Competitively high prices.• International expansion• High shipping and long deliver

process

• Cannibalizationa situation where a new product "eats" up the sales and demand of an existing product.

• Competitors provides similar products.

• Lack of expert operators for complex machines

ADVENTAGES

Samsung Sony LG• Diversification

- Related diversification- Unrelated diversification

• Backward vertical IntegrationAcquiring supplier or distributor

• Cost leadership strategiesSetting up manufacturing plant in India there by reducing logistics and supply chain costs.

• Globalization strategies• Focus Strategy

- LCD TV

• Strategic allianceorganizations join in partnership to pursue an area of mutual interest.- Outsourcing alliance- Supplier alliance- Distribution alliance

• Differentiation strategiesResearch and Development

• Globalization strategies• Focus Strategy

- Camera- Computer entertainment

• Diversification Investment in new and different business areas- Related diversification- Unrelated diversification

• Cost leadership strategies• Focus Strategy

Concentrate on serving a unique market segment- Home Appliances