Strategic analysis of sony

Strategic Analysis Of Sony

Presented By:

Chand Mohd

MBA-1st Year

14HM07

Overview

• Introduction

• Vision, Mission

• Core Values

• Value Chain Analysis

• Porter’s 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

Mission

“ To experience the joy of advancing and applying technology for the benefit of the public.”

Vision

“To become a leading global provider of networked consumer electronics, entertainment and services.”

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 Activities1. 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 Activities3. 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 Activities1. 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.

Porter’s Five Forces Analysis

Intensity of competitive

rivalry

Threat of New Entrants

Threat of substitute

products or services

Bargaining power of

customers (buyers)

Bargaining power of suppliers

Intensity of Competitive Rivalry• Sony’s market segment includes Electronics, Games, Pictures, Financial Services and Joint Ventures. For the past 5 years, among Sony’s 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• It’s 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 Blu-Ray.• Substitution like music download or streaming cause an effect on Sony recording music industry.

HIGH

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.

HIGH

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 FunctionProduct Pricing Battery Efficiencies

SWOT Analysis

OPPORTUNITIES

THREATS

Competitors Competition

Global economic Recession

Electronic Network Security

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

PEST Analysis

Competitive Advantage

• Competitive Advantage of Sony Sony’s 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