Strategic Analysis of Sony Corporation

1. Strategic Analysis Of Sony
Presented By:
Chand Mohd
MBA-1st Year
14HM07

2. Overview
• Introduction
• Vision, Mission
• Core Values
• Value Chain Analysis
• Porter’s Five Forces Analysis
• SWOT Analysis
• Environmental Analysis
• Competitive Analysis

3. 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.

4. 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

5. 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.”

6. Core Values
 Elevation of the Japanese
culture and national status.
 Being a pioneer – not
following others; doing the
impossible.
 Encouraging individual ability
and creativity.

7. 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.

8. Primary Activities
1. 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.

9. Primary Activities
3. 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.

10. 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.

11. Support Activities
1. 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.

12. 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.

13. 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.

14. 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.

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. SWOT Analysis
STRENGTH
 Innovation
 Quality
 Brand Strength
 Product Differentiation
 High Specialized Integrated Product & Services
WEAKNESS
 Maintain Multiple Function
Product Pricing
 Battery Efficiencies

22. 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

23. PEST Analysis

24. 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.

25. General Competitors:
• Samsung
• LG electronics/LG Mobiles
• Panasonic
• Philips
• Micromax
• Nokia
• Motorola
• HTC
• Nikon
• Canon
• iphone

26. Thank You