Sony Case Study

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Sony Introduction

Sony Corporation is one of the best industries in today’s world. Sony Corporation plays an important role in customer support and in professional electronics, gaming, entertainment and in financial services. SWOT analysis is an executive toll which governs the internal strength, weakness, opportunity and threats of the organization. On the other hand, PESTEL analysis has been done to know the factors regarding political, social, economic, technological, environmental and legal factors of JAPAN. PESTEL analysis is based on the external factors which deal with the consumer electronics, entertainment and it helps the organization to maximize their suitability. This study shed light on the SWOT analysis of Sony and PESTEL analysis of Japan.

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Company Name

 SONY CORPORATION

Type of industry

 Technology

Headquarters

 Kōnan, Minato, Tokyo Japan

Sales/Revenue

 ¥ 8.665 trillion

Area served

Worldwide

Number of stores

2,016

Competition

Apple

USP

Electronic products and home appliance with affordable rate

Target Group

People with different age group who seeks interest for variety type of cameras, gaming system and electronic gadgets.

Products

Laptop, Television, Cameras, Ereader, Gaming system

Website

www.sony.net

Sony Swot Analysis

Strengths

Weaknesses

  • Brand Value
  • Diverse business
  • Strong hold in the electronics and entertainment industries.
  • Absence of unique mobile device devices
  • High cost of their media products
  • Different business segment

Opportunities

Threats

  • Variety of products in one head
  • High rates of innovation
  • Increase their products in the healthcare imaging sector
  • Satisfy their potential customers with the help of booming Smartphone and tablets.
  • Price competition with the different other brands
  • Problems with the network security
  • Loss the privacy with their innovative software.
  • Decrease the demand of gaming products

Table 1: Swot Analysis

Sony Analysis

The strengths of Sony Corporation are its brand value. As per Hong and WANG (2017), it is seen that the brand Sony always satisfies their customers’ needs and demands. On the other hand, Sony has its own diverse business which attracts the customers to purchase different from the brand. As per case study of Sony Corporation, it is seen that the organization creates a strong hold in the electronics and the entertainment industries. On the contrary Sammu- Bonnici and Galea (2015), have mentioned that Sony loss their customers for limited units of stocks and variety.

The products of Sony corporation is comparatively high in respect to others brand products. As per the case study of Sony Corporation, every product of Sony is not equally technological based due to massive diverse sectors. However, on the other hand Chu (2017), it is seen that diverse sectors helps the customers to choose a variety of products from over head and the Sony has its high rate of innovative products.

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The organization is supposed to seek their interest for the healthcare imaging product and creates a positive impact on the mind of their potential customers for the uniqueness in the features of their smart phones and tablets. As per the case study of Sony Corporation, it has been observed that Sony Corporation faces problems with the other brands like Apple regarding their product price. In a webinar it is observed that customer’s complaints regarding the high market price of Sony products.

The organization starts loose the belief of their customers for the data security and it is seen that the data of Sony is repeatedly hacked by the hacker. On the other hand, it is also seen that the government of Japan provide continuous support for the protection of their data from hackers. Further, it is also seen that the organization faces problem with the invitation techniques. The management team expected that the data has been supplied to other brands and decrease the sales rate and customer’s attraction. As per the case study of Sony Corporation, it is observed that the organization gradually decrease the demands of their gaming products from their potential customer because the other brands develop the same products in a minimum cost (Shankar, 2017).

Sony Pestel Analysis

Political

  • Maximize the government support for the online business
  • The government provides complete support for the data security.
  • Minimum wages provided to the employee and force them for overtime.

Economical

  • The GDP rate is 1.71% (tradingeconomics.com, 2019)
  • The inflation rate is 1.10% (tradingeconomics.com, 2019)
  • Interest rate is -0.1% (tradingeconomics.com, 2019)

Social

  • Maximize the adoption of online gaming technologies.
  • Leisure interest
  • Improving the wealth distribution

Technological

  • Maximize the dependency of online marketing
  • Unique innovation attracts customers
  • Increase the rate of research and development

Environmental

  • Increase the importance of business sustainability
  • Promote a step towards eco friendly gadgets
  • Increase the rate of recycling products

Legal

  • Improving the patent protection
  • Strict amendment of e-waste
  • Increase the rate of product regulations

Table 2: Pestel Analysis

Sony Analysis

In the 21st century there is ample demand for the electronics gadgets which attracts their potential customers to increase their sales rate. Sony corporation gets the complete support for maximize their online marketing business. As per the case study of Sony Corporation the government of Japan support for their data protection. According to Khan et al. (2015), without the proper data Security Company gets the hold from their potential customers. On the other hand it is seen that the organization forces their employees for the extra time of work and they provide less wages to their employees.

As per the case study of Sony Corporation, it is seen that with the increase rate of electronics products the GDP rate is supposed to increase by the year 2020. Presently the GDP rate is 1.7% in Japan (tradingeconomics.com, 2019). On the other hand the inflation rate gradually decreased to 1.10% in the present year. It is seen that the interest rate of Japan is about to -0.10% (tradingeconomics.com, 2019) and it creates a positive vibes in the mind of businessman to start new business.

As per the case study of Sony corporation, it is observed that potential customer of Japan has footstep ahead to get the trends of online gaming technology. It is observed that Japan is the third largest country in the adoption of gaming technologies and Japan government get the revenue of $ 14 million in a year from the gaming technologies.

It has been seen that 34% citizens adopt the latest technology on early demands and with deliberations (pdfs.semanticscholar.org, 2018). In addition to this the environmental factors creates a positive vibes for their potential customers who appreciate the eco friendly products. According to the Research and Development department of Japan states that by the year 2050, Japan starts adopting 50% eco friendly products (oecd.org, 2019).

In Japan most of the materials are recycled and reused for further use and implement those in new products. According to Zhang (2017), it is seen that 50% of people start accepting environment safety products by the year 2050. The recycling materials rates is approximately 20.6% and the reuse rate is 98.6% by the year 2023 (global-recycling.info, 2019).

The legal aspects of Japan are to increase the rate of product regulation and adaptation of E-waste for the betterment of Japan. It is the responsibility of the Japan citizen to follow those rules and regulations. As per the case study of Sony Corporation, the government improves the patent protection.

Reference List

Chu, Y., (2017), January. SWOT analysis and Countermeasures of India market environment for domestic mobile phone. In 2017 International Conference on Education, Culture and Social Development (ICECSD 2017). Atlantis Press.

global-recycling.info, (2019) ABOUT US. Available at https://global-recycling.info [Accessed on 1/08/2019]

Hong, Y.U. and WANG, J.Y., (2017). Analysis and Suggestion on the Development of SONY. DEStech Transactions on Economics, Business and Management, (icem).

Khan, U.A., Alam, M.N. and Alam, S., (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management3(6), pp.955-961.

oecd.org , (2019). ABOUT US. Available at http://www.oecd.org [Accessed on 5/08/2019]

pdfs.semanticscholar.org, (2019). ABOUT US. Available at https://pdfs.semanticscholar.org/72db/df42896a88c19aa79add7fa0dcb9c17ca65d.pdf [Accessed on 31/07/2019]

Sammut‐Bonnici, T. and Galea, D., (2015). SWOT analysis. Wiley Encyclopedia of Management, pp.1-8.

Shankar, G., (2017). A study of globalization challenges and SWOT analysis of education in India. International Journal of Business Administration and Management7(1), pp.16-25.

tradingeconomics.com , (2019) Forecasts. Available at https://tradingeconomics.com [Accessed on 20/07/2019]

Zhang, Q., (2017). Research on Apple Inc’s Current Developing Conditions. Open Journal of Business and Management6(01), p.39.

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