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. The staffers of the organization are well coordinated and specifically trained to engage in research and development. This is discussed more in the recommendation section of this write up. Transferring leader from the entertainment business unit to head the electronic unit has caused the problem of coordination of resources in the electronic unit, as observed in the case of Stringer transfer. Economic factors: SONY products aren’t a necessity. Sony Inc is trying to pursue two opposing strategies in its quest for operating change in the organization for its competitiveness. SWOT Analysis is a proven management framework which enables a brand like Sony Set Max to benchmark its business & performance as compared to the competitors and industry. (1996), “Achieving Simultaneous Cost and Differentiation Competitive Advantage through Continuous Improvement: World Class manufacturing as a Competitive Strategy” in Journal of Managerial Issues. Sony Music Entertainment "BE MOVED" Strategic Issues Mission Statement Low album sales; "At Sony, our mission is to be a company that inspires and fulfills your curiosity." Sony was ranked 97th on the 2018 Fortune Global 500 list. Another strength attributed to the Sony Inc is in the area of innovativeness. Kegeyama, Yuri (2006), “Stringer Pledges Sony Turnaround: Shareholders Grumble at Sony Annual Meeting as Stringer Promises Better Days Ahead” June 22, CBS News http://www.cbsnews.com/stories/2006/06/22/ap/business/mainD8ID49VO0.shtml (23/01/08) The company is maintaining its market leadership because of the continuous innovation of new products, especially in areas of its electronics. SWOT Strengths Sony is successfull in acquiring licenses and patents for building strategic partnerships and business development. 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. Flynn, B.B. Economic Report of the President (1985) p. 191 or medium without express writtern permission of moneycontrol.com is prohibited. EXECUTIVE SUMMARY Ever since its foundation by Akio Morita and Masaru Ibuka in 1946, this Sony has … To maintain its leadership stand in these industry the leadership of the organization need not only to sustain and increase the profit maximization for stakeholders, but also to unveil new business opportunity that are not yet tapped by rivals , thereby putting the organization ahead  its rivals. 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. The integration and transition of resources to the different business units becomes very difficult. The brand also operates in three other categories: motion pictures, financial services, and music.Because they’ve dipped their toes in these industries, SONY is one of the leading entertainment businesses and manufacturers in the world. The need to enhance financial flexibility among the different operating business units of Sony Inc; The case study will also explain Sony’s SWOT analysis and will evaluate the strategies followed. 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. Furthermore, the nature of electronic and technology becomes out of vogue as new technology comes out. Old MCI!~!172@29@0@53!~!|commonstore|commonfiles|moneycontrol_header.php?cid=0&s_cid=0&radar_off=1&is_revamped_header=1&is_responsive=1&sec=SWOT_DETAIL&priceinter=1&frommc=1!~!www|moneycontrol|com!~!|commonstore|commonfiles|moneycontrol_header.php!~!is_mobile=false, Old MCI!~!172@29@0@53!~!|commonstore|commonfiles|moneycontrol_footer.php?cid=0&sec=SWOT_DETAIL&is_revamped_footer=1&is_responsive=1&rhsoff=1&is_news_section=1&is_skip_dfp=1&is_new_hp=1&priceinter=1&frommc=1!~!www|moneycontrol|com!~!|commonstore|commonfiles|moneycontrol_footer.php!~!is_mobile=false, Webinar Presented by Knowlarity & Freshworks. In addition, strategic human resource management is adopted by Sony Inc, where workers contribute to the development of the organization’s strategic thrust. The approach needed to resolve the integrating challenge of Sony Inc is for the organization to adopt a portfolio streamlining strategy. A SWOT Diagram showing SWOT analysis for Media and Entertainment Industry. Sony Business Empire, especially in its electronic business unit, is faced with the challenge to maintain a continuous market leadership and curve a niche for itself amidst stiff competition. Add New SWOT Analysis | Feedback. Sony has managed to reach at the level of being one the biggest music companies in the world and remain at this stage. Thus, there is the task and challenge to choose the right partners for a profitable alliance and benefits from synergy formation. Reproduction of news articles, photos, videos or any other content in whole or in part in any form Kindness, in the end, can kill a company.” This implies that the management of the organization will not continue to engage in the culture of unnecessarily cost accumulation and wastages. SWOT analysis is a powerful tool for understanding a company’s market position. Sony Inc with its diverse business units in the entertainment and technological-electronics industries is a force and leader to reckon with. 9.0 SONY STOCKHOLDER ANALYSIS The Strength of the Sony organization lies in the diversity of its products and business units. 10.0 PORTFOLIO ANALYSIS Sony has many close rivals in its electronics and technology business operations that would make doing business difficult and tasking. 8, No. In 1993, PlayStation R&D project was completed and Sony Computer Entertainment Inc. (SCEI) was established and Ken Kutagari became the Executive Vice President of its R&D 170 3 The SWOT Analysis of Sony Corporation will explore the strengths and weaknesses of, and the opportunities and threats for Sony. Other countries trade centers where finished products are exported. There was the challenge of fitting in to this area of operation for the organization. The online market offers Sony Interactive Entertainment the ability to greatly expand their business. The Sony Inc need an effective leadership and right management structure to coordination the vast assets it has in order for it to maintain its leadership in the entertainment and technology industry. PROBLEM MILITATING AGAINST SONY The challenges facing business is how to strategize to curtail these changes. 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. Sony: SWOT analysis. Sony is a corporate brand whose identity is deeply rooted and very well established in the minds of potential customers. Also, positioning strategy is exhibited in Cost Effectiveness strategy. Thus, it has chosen to embark on a cost effectiveness strategy. For the first time in a handheld game console, an optical disc format known as Universal Media Disc (UMD) was used. The dynamics of contemporary business operation requires that constant innovation and introduction of strategy that could not be easily imitated be put in place. Putting an effective human resource planning for maintaining top executive for the organization is needed for maintaining and aiding the organization maintain its market leadership. Read also PlayStation 4 SWOT Analysis This has led to reduction in investment proceed for the organization shareholders for the last years till 2006. Access many Sony group services, all with one sign-in ID. The government of the major countries Sony operates has good economy returns in terms of tax. Furthermore, there is the problem of maintaining … PlayStation Portable is also known as PSP. SWOT-analysis Sony Pictures Entertainment …: SWOT-analysis Sony Pictures Entertainment Sony PlayStation 4 is a video game console that has been created by Sony Interactive Entertainment. 12.0 REASON FOR REJECTING THE ADOPTED STRATEGY OF SONY INC In the electronic and technology industry, there are contending rivals like Panasonic, Sharp, JVC, Nokia, Beko, LG, Siemens, Motorola, Kodak, among others. Interbrand valued Sony brand at $11 million. At the positioning structure level, the Sony Inc has regards for the effort of its workers in the innovation of ideas and strategy for the advancement of the organization. Strategic management pattern of every organization may differ from what is obtainable in another; while there may be areas of similarity, certain aspects are uniquely structured out to suit the operation of the organization in concern. Sony Corp’s mission statement reads “A Company that inspires and fulfills your curiosity”. This has given Sony the right environment to continue to expand and create new products. 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”. Such as downsizing of workforce, entering into partnership and joint venture with other business associates to enable the Sony Inc continue to maintain its leading status in the industry. This is reflected in its entertainment and music-recording label Sony-BMG Music label of Sony. For instance, the PlayStation innovated by Ken Kutaragi, Sony employee, is an technology that should be maintained upon, and more innovative product that surpasses previous releases need be created and put in the ever diverse and plethora products of the Sony products on the shelf. ISIN: | SECTOR: Media & EntertainmentMedia & Entertainment. Thus, alternative strategies need to be put in place to augment the operations of the Sony organization. This should be directed towards giving the various units businesses the independence to operate in the most efficient manner. 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)”. 3 (Sony, 2015) Financial report '13 (Yen in billions) Year 2012yr 2013yr Sales 442.8 SWOT analysis Here is a SWOT analysis of Sony Corporation (NYSE: SNE), which once was the undisputed leader in the consumer electronics space. Swot Analysis for Sony 1893 Words | 8 Pages. Sony recorded consolidated annual sales for the year amounting to approximately $70.3 billion. As of 2020, Sony Set Max is one of the leading brands in the media & entertainment sector. Furthermore, the electronic business units of Sony are highly diversified. Media And Entertainment is one of the most booming sectors in India due to its vast customer reach. This has made it difficult for the company to curve a niche for itself. Rowden (1999) argue that Human Resource Professional need to master global operating skills. To overcome this limitation and help develop strategies that are appropriate, an advanced SWOT analysis or TOWS matrix is used. Sony SWOT analysis lists down the strengths, weaknesses, opportunities and threats to any organisation, but does not tell management what can be done by these. Stringer comment “I cannot allow the generosity of Sony’s [culture] to resist certain changes. However, they may not have the largest market share in this industry if they have diversified into other business lines. In the organization’s bid to compete favorably, its management are reducing the cost of its production and avoiding wastages by downsizing its workforce. This is reflected in the strategic human resource management, embarked by Sony Inc. 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) Sony enjoys favorably environment in these country where it operate, alongside with political stability that ensure it operate effectively. Each government of the states where the Sony organization operates has political regulations that effect its operations. Leadership is significant in attainting and maintaining market leadership. 14.0 CONCLUSION Sony Corporation PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Japan, Japan, Fri, 25 Dec 2020 02:15:34 / Comserve Inc. / -- The gaming simulator market is expected to register a revenue of $13,378.2 million by 2026, increasing from $4,320.0 million in 2018 … Putting this into practice would make an organization stand to curve a niche over its rivals and competitors. Vol. The console which is the top seller in its category has a storage capacity of 1 TB or 500 GB. Changes in the macro-environment factors can have a direct impact on not only the Sony Corporation but also can impact other players in … The positioning school exhibits a strategic human resource management. This synergy should come from organization that maintains same vision and corporate culture as Sony. 3. 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. 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. 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; You will get a personal manager and a discount. 2.0 COMPANY ANALYSIS 110, Issue 51, P.1, 2. Strengths. Furthermore financial and other resource flexibility should be encouraged to move freely among the business units of the organization this will help in period of shortages in one part of the organization’s operations, and when it becomes germane to restructure the organization’s operational structure. Sony Music Entertainment, also known as Sony Music is controlled by Sony Corporation of America. In Japan where most of the electronic productions are done, the government their have created the conducive environment for the electronic industry to thrive. 13.0 SUSTAINING COMPETITIVE ANALYSIS 4.0 INDUSTRY AND COMPETITORS ANALYSIS Taylor, chuck (1998), “Sony’s stringer, Mottola get Roles in revamp” Billboard New York. 8.0 DILEMMA OF THE STRATEGIES ADOPTED BY SONY  Rowden, R.W (1999), “Potential Roles of the Human Resource Management Professional in the Strategic Planning Process” in SAM Advanced Management Journal. Copyright © e-Eighteen.com Ltd All rights resderved. Sony is a brand name when it comes to electronic and technological products. SWOT Analysis of Media And Entertainment Industry STRENGTHS: 1. It’s perfectly placed in a growing industry, but has to battle with the growing numbers of low-cost electronics manufacturers. 7.0 BUILDING BLOCK FOR STRATEGIC OPERATION AS APPLICABLE TO SONY INC 3.0 SWOT ANALYSIS OF SONY INCORPORATION This will go a long way in building a consolidated workplace where the problem of integration in Sony organization would be effectively solved. 1. Sony Computer Entertainment also develops games and other software for PlayStation Portable. Plethora electronic products and technological gargets are the delight of customers patronizing Sony electronic and technological products. Peter, J. Dowling, et al (2005), Strategic Management: Competition and Globalization (2nd Pacific Rim Edition) 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. The eighth generation of this category the Playstation has found a place in the customer’s mind and competes with X box and Nintendo Switch. Since the desire of customers is to enjoy the variety in entertainment and electronic types, firms in these industries have many business opportunities in innovating new product and good artistry work. Howard Stringer faces a huge task to reposition Sony to its lost glory and ensure gain from the financial loss that is experience resulting from the cost reduction strategy it embarked on.  Brown, S.L. Vol. The causes of the identified problems include Thus, one of the major challenges facing the Sony Inc is how to maximize effectively the utmost use of its vast resources in its different business units. Here, a provision should be put in place where financial flexibility should be made to cut across the two independent organizations. 64, Issue 3. This gives Sony the opportunity to expand on its business network and area of operations. Sony’s vision statement reads “Using our unlimited passion for technology, content and services to deliver groundbreaking new excitement and entertainment, as only Sony can”. Find out more. For projects that are very viable for the furtherance of the organization growth and enhancement of its effective operation. Boston, Mass: Harvard Business School Press. Would you like a lesson on SWOT analysis? PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Sony Corporation. A Porter’s Five Forces analysis of Sony Corporation indicates the need for strategies to counteract the effects of competition in the industry environment. 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. Vol. Participatory management is what is carried through SHRM (Poole and Warner 1998). Copyright © e-Eighteen.com Ltd. All rights reserved. Exclusive games – A huge advantage in the SWOT analysis of Sony PlayStation is the list of exclusive games which are available on the PS only. Sony is known as a pioneer in its field with offerings ranging from electronics, music, computing, gaming, semiconductors etc. Get Help With Your Essay. From the strategic framework put in place by Sony Inc, it is seen that a participatory management is encouraged where workers and subordinates have inputs to the strategic framework. .a{fill:#6db41e;stroke:#637733;}.b,.d{fill:none;}.b{stroke:#fff;}.c{stroke:none;}, BSE: | NSE: | Since Howard Stringer took over the management of Sony Japan the he had promised shareholders and other financial stakeholders to the organization of a financial fruitful year. Sony Corporation’s SWOT Analysis & Recommendations Updated on March 1, 2017 by Roberta Greenspan A Sony Xperia M4 Aqua Dual E2363. It lists its opportunities that the brand can use to increase its market share and brand value. The challenge facing the corporation is how to integrate effectively its diverse business units to utilize maximally the benefits of its vast resources. Nevertheless, this should not constitute a hindrance to the seizing up of viable business opportunities and coming up with innovative business ideas and products. The analysis of the Sony portfolio shows the organization has numerous products that are of quality to sustain the market leadership for the organization. & Flynne, E. J. 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. In the industry where Sony Inc operates both in the entertainment and the electronic and technologies have are many rooms for firms to compete. 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. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited. Strength - Analyse stocks based on their strengths, weakness, opportunities, and threats. This require the matching of manpower to other operational resources and maximizing the utmost productivity from the organization’s vast resources 11.0 MACRO ENVIRONMENT ANALYSIS 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. EXECUTIVE SUMMARY The industry where Sony Inc operates both in its entertainment industry and electronics technology industry are both high keenly competitive. Mainly, Sony operates in US, Europe and Japan. Furthermore it will give recommendations for business growth and followed by conclusions and at the end. Formation of synergies between other organizations of like–interest has made Sony Incorporation to continue to triumph in its operations. Since then, SCE has continued to make home gaming consoles, including the current PlayStation 4 … The Sony Inc has business unit pning in the entertainment industry and in the technological electronics industry. 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. This is what Sony Inc need to unravel under the leadership of Stringer. Sony SWOT Analysis Sony Strengths Below are the Strengths in the SWOT Analysis of Sony: 1. Sony’s mission and vision statements are a reflection of how critical these business instruments are when it comes to the growth and position of a company in the market. Learn More Sign In Substantial Brand Identity. 9 SWOT The Sony Mobile Company’s SWOT analysis illustrates that the company’ strengths greatly outweigh its weakness. This two opposing theories will get to a point where they would slow down the attainable result for the growth of the organization. A SWOT analysis of Sony Corporation shows capabilities to improve business performance in the electronics, gaming, entertainment, and financial services markets. Though, Sony had in the past experienced financial loss in its operations. Series: NA | Sony has its electronic business pning several countries. Lack of a proper human resource planning scheme to prevent a lacuna in the needed human resources for the top echelon in the organization management; Williams, Paul (2005) “Big Two Take Lion’s Share of Market” in Music Week, 30th April By: Comserveonline - Feed. 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. This goes a long way to stand as a motivational factor to workers. ; Order your paper today and save upto 15% with the discount code 15BEST. On the organization is implementing cost reduction strategy. This diversity of operational units makes the Sony organization build up its empire of business operation. This includes engaging in workers participation in organization strategic management that would result in innovative operations and product differentiation. The need to maintain an effective human resource planning to ensure that top executive is in ample supply, in other to keep the organization The various segments of the Media And Entertainment industry like television and film industry have a large customer base. Income in form, of tax to government accrued to the home country where Sony operates its manufacturing stations. Continuous financial loss and reduction in quoted share price. 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. REFERENCES Porter, E. Michael (1985), Competitive Advantage: creating and Sustaining Superior Performance. In terms of Weaknesses, Sony struggles with high price tags and a poor presence in the smartphone market. Poole, M. and Warner M. (eds) (1998), The Handbook, Human Resource Management Pp 22 Sony Computer Entertainment, in 2004, released a handheld video game console PlayStation Portable. 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. The adopted strategy for Sony has not made the organization to continue to maximize the best out of its vast resources. 37, No 3. p 293 Palmer, Maija (2007), “Sony Ericsson President to step Down” Financial times London. Each of the organizations has its own market share, and the products that compete favorably with Sony’ electronics. Sony has several electronics for household usage and industrial usage. For the first financial quarters in 2007, Sony financial operation had an improvement from previous years. 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. Workers of the organization tend to implement more effectively those strategies they have input. The nature where electronic and technological product becomes obsolete stands as a threat to the operations of organization such as Sony Inc. Larsen, Peter L. (2003), “Sony Rules Out selling Music business Media” In Financial Times London Nov. 5 P. 20 Dec 25, 2020, 02:15 - The gaming simulator market is expected to register a revenue of $13,378.2 million by 2026, increasing from $4,320.0 million in 2018 at a significant CAGR of 17.2%. Customer Analysis: Sony: SWOT Analysis Of Sony 1685 Words | 7 Pages. 4. overview of the case. 5.0 SONY SITUATIONAL ANALYSIS Sony Inc practice strategic human resource management. These are the largest companies by revenue. According to Porter (1985:41-44), an organization can either gain competitive advantage through cost effectiveness or through product differentiation. As a technological firm majoring in the production of a wide range of related products and services, Sony has shown what it takes to maintain a consistently high reputation for years. Sony Inc operates in an industry where the competition is very tense. The problem militating against Sony electronic and technology business units include Strengths. December 24, 2020 at 21:15 PM EST . The Sony Inc under the leadership of Stringer sought to adopt a cost reduction strategy that would make the organization compete favorably with its rivals. Opportunities The industry is a tensely competitive one, in which innovative products are created so make each one gain an edge over the other. Thus, workers participation in the advancement of the organization’s growth is encouraged. 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. 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). The lack of adequate coordination and synchronization of vast resources in the Sony organization. Fundamental, Stock Ideas, Multibaggers & Insights, Stock & Index F&O Trading Calls & Market Analysis, Positional and Intraday Trading Calls basis Noiseless Chart, Commodity Trading Calls & Market Analysis, Currency Derivatives Trading Calls & Insights, Options Trading Advice and Market Analysis, Model portfolios, Investment Ideas, Guru Screens and Much More, Proprietary system driven Rule Based Trading calls, Curated markets data, exclusive trading recommendations, Independent equity analysis & actionable investment ideas, Details stock report and investment recommendation, +148.15 (+1.09%) The challenge facing the corporation is how to integrate effectively its diverse business units to utilize maximally the benefits of its vast resources. Threats 6.0 POSITIONING SCHOOL THEORY ADOPTED IN SONY History of Sony Computer Entertainment Inc. Sony Corporation Inc. invested in Play Station R&D project in 1990. 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