Sony Case Study

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Environmental factors:

Environmental factors of an organization's activities, products or services can interact with environmental factors. Environmental factors here reflects the most obvious is the location, in China, for example, the coastal areas of inland than spending power is relatively weak. So, SONY products for different fields of the different price, so targeted marketing strategy, will be able to increase the buyers. SONY compliance laboratory in Stuttgart, Germany, specializing in highly efficient and accurate compounds and materials, and their electronic products. In their plan, they use more recycled materials, and renewable energy use 32 sites in factories and offices in Europe only itself. According from a report "provides impact and waste electrical and electronic instructions to limit e-waste and hazardous substances. Additional procedures and certification required as a result of these regulations have increased costs, but also affect the supply chain."(Verma.D, 2011) However, since 2010, SONY's goal is to keep the sustainable consumer electronics brand. In addition, they also wanted to continue their success in 2009.

Porter’s Five Forces Analysis

Five forces analysis, in the early 1980s, Michael Porter presented the idea of the impact of the global business strategy. Five Forces analysis are the threat of new entrants, threat of substitute products, bargaining power of suppliers, the bargaining power of customers, and finally the competitive strength. To be a successful strategy, we must first identify and assess the strength of these five.

Threat of New Entrants

New entrants to the industry while bringing new productivity and resources, hoping to have finished in the existing business to seize market foothold quickly. It can be used with other materials and competitive market share in an enterprise, the final results in the decrease of existing industry enterprise profit level, severe and may endanger the survival, so the concept of the threat of potential entrants is not small. For example, Sony Ericsson launches new model every year with completely advanced and different features. Walkman branded phone namedW305Named W705 for 2009 and Xperia Text pro in 2010.(Rob, 2008) New entrants have many innovative products, and the service life of 3C industry usually maintain a year or so, it is easy to get new products. In terms of notebook computers, at the same time have a SONY VAIO with Apple Mac book and embed the EeePC competition at the same time. Thus the SONY in the 3C industry, there are many powerful competitors.

Threat of substitutes

Whether or not in the industry, every product is likely to be substitutes, it will produce competitive behavior. The competition originated in various forms such alternatives, the impact of the existing businesses in the industry's competitive strategy. SONY company attaches great importance to the innovation, so products with another enterprise product quality are small, the price is usually much higher. "The Sony management team is so confident about it; they declare that first five million people will buy the PS3 even it had no games in it."(Reeves.D, n.d.) The SONY PS3 is due to the electronic market tide change too fast, not only did not meet at the beginning of sales targets and announced the price, also failed to stimulate demand.

Bargaining Power of Buyers

The bargaining power of customers for SONY is high because, under the condition of the consumer electronics industry, the production quality standards are equal. In the fierce competition is obviously, so for the customer, have more products for comparison, SONY's competition threat. "Almost no switching costs from one brand to another. The information technology to provide customers with a wide range of selectivity." (Holtzman.M, n.d.)

Bargaining Power of Suppliers

Supplier is mainly composed of raise prices and reduce the capacity of the unit value of the product, the impact of existing corporate profitability and competitiveness of their products. To decrease the bargaining power of Apple’s suppliers, the company allows new suppliers to register online on the company’s website (Apple, 2010). In the 3C industry, raw materials needed for less than other sectors, and the production process is not complicated, so more can grasp the supplier manufacture and trading conditions, because SONY company is international companies share rate is high, so the suppliers have bargaining power.

Intensity of rivalry

Most homogeneous enterprise, its goal is to make oneself of the business to obtain the advantage on the market, bound to conflict and confrontation of the phenomenon. These conflicts and confrontation, to make up for the existence of competition between enterprises. For example, SONY in various industry departments, there are many powerful competitors. Products such as mobile phones, TV, digital cameras, its rivals Panasonic for best picture, are similar in their products. In addition, Smit (2006) support the idea of competition between enterprises is similar to reap many policies are competing for the position. In terms of the game industry, with the Nintendo WII in the competition the biggest threat to the hands.

Recommendation

Price strategy

Recommend SONY companies should respond to the economy to develop more practical products, make small budget also can accept the price of the product cost. Also can be more production and daily life related multi-function products, such as: the PS3, mobile phones and other products, the production, in order to reduce the price to stimulate consumers to buy, to achieve system to measure price. According to Corporate Strategy Meeting (2015) explain that devices, games and online services, pictures and music that we have seen growth in the segment to promote Sony's next three years.

Product strategy

Some consumers for the function, appearance, style, after-sales service is not satisfied, so advice SONY developed more durable, easy to carry products. "Japanese electronics company believes that profits and ROE swelling essential key is to focus on a narrow band of products." (The Economist, 2009) And the consideration of the problem of the price to avoid consumers can't accept it.

Promotion strategies

Due