This has given Sony the right environment to continue to expand and create new products. Customer Analysis: Sony: SWOT Analysis Of Sony 1685 Words | 7 Pages. 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. The founders of Sony are Masaru Ibuka and Akio Morita. Ever since its foundation by Akio Morita and Masaru Ibuka in 1946, this Sony has … Porter, E. Michael (1985), Competitive Advantage: creating and Sustaining Superior Performance. The dynamics of contemporary business operation requires that constant innovation and introduction of strategy that could not be easily imitated be put in place. 2. Another strength attributed to the Sony Inc is in the area of innovativeness. The aim of this project is to analyze the external and internal environment ofSony Computer Entertainment and create a SWOT analysis to assess where marketingstrategies could improve SCE’s positioning and competitive advantage. This goes a long way to stand as a motivational factor to workers. 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. Each of the organizations has its own market share, and the products that compete favorably with Sony’ electronics. Threats 12.0 REASON FOR REJECTING THE ADOPTED STRATEGY OF SONY INC Each government of the states where the Sony organization operates has political regulations that effect its operations. Sony Computer Entertainment also develops games and other software for PlayStation Portable. ISIN: | SECTOR: Media & EntertainmentMedia & Entertainment. The challenge facing the corporation is how to integrate effectively its diverse business units to utilize maximally the benefits of its vast resources. Boston, Mass: Harvard Business School Press. 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. This is reflected in its entertainment and music-recording label Sony-BMG Music label of Sony. This will prevent forming an alliance leading in diverse direction. Formatting (APA, MLA, Harvard, Chicago/Turabian). Sony, a conglomerate based in Tokyo, Japan, has a diversified business portfolio made of electronics, gaming, entertainment products and financial services. SONY corporation isn’t just an electronics company. Larsen, Peter L. (2003), “Sony Rules Out selling Music business Media” In Financial Times London Nov. 5 P. 20 Market Share of Sony Interactive Entertainment's Largest Competitors A competitive analysis shows these companies are in the same general field as Sony Interactive Entertainment, even though they may not compete head-to-head. The Strength of the Sony organization lies in the diversity of its products and business units. 64, Issue 3. Nevertheless, this should not constitute a hindrance to the seizing up of viable business opportunities and coming up with innovative business ideas and products. In the electronic and technology industry, there are contending rivals like Panasonic, Sharp, JVC, Nokia, Beko, LG, Siemens, Motorola, Kodak, among others. These are the largest companies by revenue. Here is a SWOT analysis of Sony Corporation (NYSE: SNE), which once was the undisputed leader in the consumer electronics space. The challenge facing the corporation is how to integrate effectively its diverse business units to utilize maximally the benefits of its vast resources. The lack of adequate coordination and synchronization of vast resources in the Sony organization. 6.0 POSITIONING SCHOOL THEORY ADOPTED IN SONY December 24, 2020 at 21:15 PM EST . Media And Entertainment is one of the most booming sectors in India due to its vast customer reach. 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. 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”. Find out more. 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. A Porter’s Five Forces analysis of Sony Corporation indicates the need for strategies to counteract the effects of competition in the industry environment. .a{fill:#6db41e;stroke:#637733;}.b,.d{fill:none;}.b{stroke:#fff;}.c{stroke:none;}, BSE: | NSE: | 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. This has made it difficult for the company to curve a niche for itself. The problem militating against Sony electronic and technology business units include Sony Corporation PESTEL analysis is a strategic tool to analyze the macro environment of the organization. EXECUTIVE SUMMARY REFERENCES Sony is one of the biggest brands in the world. Even, this is reflected where Stringer set up a framework to its subordinate executives around the world for them to come up with plans, set goals on the different electronic products of the organization. ; Order your paper today and save upto 15% with the discount code 15BEST. In the industry where Sony Inc operates both in the entertainment and the electronic and technologies have are many rooms for firms to compete. Changes in the macro-environment factors can have a direct impact on not only the Sony Corporation but also can impact other players in … Strengths. Sony SWOT Analysis Sony Strengths Below are the Strengths in the SWOT Analysis of Sony: 1. This diversity of operational units makes the Sony organization build up its empire of business operation. 1.0 INTRODUCTION The analysis of the Sony portfolio shows the organization has numerous products that are of quality to sustain the market leadership for the organization. It is a leading brand in electronics industry and also the fifth largest manufacturer of televisions, as of 2016. Strengths. Get Help With Your Essay. 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. Due to this, the platform automatically sells because these gamers want to experience and play these exclusive games. 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. 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. The challenges facing business is how to strategize to curtail these changes. 3.0 SWOT ANALYSIS OF SONY INCORPORATION Sony organization needs to maintain an effective human resource planning and synchronize its vast resources for increased productivity. Taylor, chuck (1998), “Sony’s stringer, Mottola get Roles in revamp” Billboard New York. Strengths of Sony Inc According to Porter (1985:41-44), an organization can either gain competitive advantage through cost effectiveness or through product differentiation. This analysis also points to major threats and opportunities that supporting the company achieve the succeed in the technology industries by applying the corporate strategy. This two opposing theories will get to a point where they would slow down the attainable result for the growth of the organization. Copyright © e-Eighteen.com Ltd All rights resderved. Since then, SCE has continued to make home gaming consoles, including the current PlayStation 4 … The diverse operation of the Sony Inc has made the organization have the challenge of integrating its operations and diverse portfolios to obtain better services and products for its customers. 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. 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. 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. Income in form, of tax to government accrued to the home country where Sony operates its manufacturing stations. Peter, J. Dowling, et al (2005), Strategic Management: Competition and Globalization (2nd Pacific Rim Edition) Others includes, Sony Eriksson series of mobile phones, Sony Video cameras, Sony Refrigerators, Sony DVD players, Sony VCD players, Sony world receivers, Sony Decoders, Sony Camcorders, Sony Fans, Sony Air conditionals, Sony laptop computers etc. SONY INTERACTIVE ENTERTAINMENT MARKETING PLAN 2 Executive Summary Sony Computer Entertainment, or SCE, became a company in November 1993, the company launched the first PlayStation system in December 1994, bringing a new market to Sony Entertainment through gaming. Sony is a brand name when it comes to electronic and technological products. 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. This is what Sony Inc need to unravel under the leadership of Stringer. Formation of synergies between other organizations of like–interest has made Sony Incorporation to continue to triumph in its operations. Series: NA | Other countries trade centers where finished products are exported. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Sony Corporation. 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. Sony recorded consolidated annual sales for the year amounting to approximately $70.3 billion. 37, No 3. p 293 It’s perfectly placed in a growing industry, but has to battle with the growing numbers of low-cost electronics manufacturers. 10.0 PORTFOLIO ANALYSIS Read also PlayStation 4 SWOT Analysis SWOT Analysis of Media And Entertainment Industry STRENGTHS: 1. Palmer, Maija (2007), “Sony Ericsson President to step Down” Financial times London. God of wars, Uncharted and many other games are some favorites of gamers and are exclusively available on PlayStation. The SWOT analysis of Sony indicates the strengths of the company with which it is good at and what distinguishes it from its competitors, its weakness that prevents the brand from performing well and where its focus should be to improve its brand value. Add New SWOT Analysis | Feedback. Sony Corporation’s SWOT Analysis & Recommendations Updated on March 1, 2017 by Roberta Greenspan A Sony Xperia M4 Aqua Dual E2363. Workers of the organization tend to implement more effectively those strategies they have input. Plethora electronic products and technological gargets are the delight of customers patronizing Sony electronic and technological products. Stringer comment “I cannot allow the generosity of Sony’s [culture] to resist certain changes. 8.0 DILEMMA OF THE STRATEGIES ADOPTED BY SONY Vol. 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. Furthermore, there is the problem of maintaining adequate top executive that would drive the organization into higher heights and maintaining its market leadership place. The adopted strategy for Sony has not made the organization to continue to maximize the best out of its vast resources. The approach needed to resolve the integrating challenge of Sony Inc is for the organization to adopt a portfolio streamlining strategy. 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. 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. This is discussed more in the recommendation section of this write up. Home SWOT Analysis Index Sony Interactive Entertainment SWOT Analysis Online Market (Sony Interactive Entertainment) Last Updated by wbot | Update This Page Flag this page Delete This Page. Thus, alternative strategies need to be put in place to augment the operations of the Sony organization. Sony Computer Entertainment, in 2004, released a handheld video game console PlayStation Portable. The industry where Sony Inc operates both in its entertainment industry and electronics technology industry are both high keenly competitive. Participatory management is what is carried through SHRM (Poole and Warner 1998). The online market offers Sony Interactive Entertainment the ability to greatly expand their business. Sony has its electronic business pning several countries. Since Sony Pictures Entertainment is a unit of Sony, a SWOT analysis was done on the company as a whole: Strengths: One of Sony… 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) Furthermore, there are vast markets for the product and services from these industries to developing countries in Africa and Asia. A SWOT Diagram showing SWOT analysis for Media and Entertainment Industry. This require the matching of manpower to other operational resources and maximizing the utmost productivity from the organization’s vast resources Sony: SWOT analysis. 7.0 BUILDING BLOCK FOR STRATEGIC OPERATION AS APPLICABLE TO SONY INC 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%. The integration and transition of resources to the different business units becomes very difficult. Sony Inc with its diverse business units in the entertainment and technological-electronics industries is a force and leader to reckon with. Putting this into practice would make an organization stand to curve a niche over its rivals and competitors. The Sony Inc has business unit pning in the entertainment industry and in the technological electronics industry. Opportunities The government of the major countries Sony operates has good economy returns in terms of tax. Sep. 5, P. 26 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. The staffers of the organization are well coordinated and specifically trained to engage in research and development. Read about PlayStation 4 SWOT Analysis SWOT Case Analysis. Vol. By: Comserveonline - Feed. 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; 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. Poole, M. and Warner M. (eds) (1998), The Handbook, Human Resource Management 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. (Sony, 2015) Financial report '13 (Yen in billions) Year 2012yr 2013yr Sales 442.8 SWOT analysis The causes of the identified problems include 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. 2. & Flynne, E. J. 110, Issue 51, P.1, 2. 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. The industry is a tensely competitive one, in which innovative products are created so make each one gain an edge over the other. Sony PlayStation 4 is a video game console that has been created by Sony Interactive Entertainment. This has led to reduction in investment proceed for the organization shareholders for the last years till 2006. The need to enhance financial flexibility among the different operating business units of Sony Inc; SWOT analysis is a powerful tool for understanding a company’s market position. PlayStation Portable is also known as PSP. Though, Sony had in the past experienced financial loss in its operations. Sony Inc operates in an industry where the competition is very tense. The various segments of the Media And Entertainment industry like television and film industry have a large customer base. 4.0 INDUSTRY AND COMPETITORS ANALYSIS or medium without express writtern permission of moneycontrol.com is prohibited. To overcome this limitation and help develop strategies that are appropriate, an advanced SWOT analysis or TOWS matrix is used. 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. It has more than 120000 employees across the world. 8, No. 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. Rowden (1999) argue that Human Resource Professional need to master global operating skills. According to Brown & Eisenhardt (1998:3), “strategy is about two things: deciding where you want your business to go and figuring out how to get there”. Economic factors: SONY products aren’t a necessity. On the organization is implementing cost reduction strategy. In Japan where most of the electronic productions are done, the government their have created the conducive environment for the electronic industry to thrive. Swot Analysis for Sony 1893 Words | 8 Pages. Furthermore, there is the problem of maintaining … Sony enjoys favorably environment in these country where it operate, alongside with political stability that ensure it operate effectively. overview of the case. If you need assistance with writing your essay, our professional essay writing service is here to help! Sony Inc practice strategic human resource management. ALTERNATIVE OPTION RECOMMENDED FOR SONY INC 9 SWOT The Sony Mobile Company’s SWOT analysis illustrates that the company’ strengths greatly outweigh its weakness. 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. 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. Sony has many close rivals in its electronics and technology business operations that would make doing business difficult and tasking. This lost have affected the share portfolio value of Sony shareholders in the last five years. This synergy should come from organization that maintains same vision and corporate culture as Sony. 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; Just as the scenario when Stringer was transferred from Sony Music in U.S. to operate the Japan Sony electronics units. 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 … 3. Furthermore, the nature of electronic and technology becomes out of vogue as new technology comes out. Vol. 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. Theories will get a personal manager and a discount, but has to battle with the growing numbers of electronics... Are the delight of customers patronizing Sony electronic and technological gargets are the delight of customers Sony! To reach at the level of being one the biggest four record companies, ranked as the second global... D project in 1990 needs to maintain an effective human resource planning and synchronize its resources... Day technology considering the portfolio diversity is tasking to the organization has products. The electronic business units becomes very difficult the smartphone market needed to resolve the integrating challenge Sony... Would slow down the attainable result for the first time in a handheld game console PlayStation Portable has good returns... Is cased by the Sony organization needs to maintain an effective human resource management country! Competition in the recommendation section of this write up the nature of electronic and products! Tool to analyze the macro environment analysis Sony has vast collections of products, especially in areas of its resources! Many other games are some favorites of gamers and are exclusively available on PlayStation develop strategies that are quality. Across the world and remain at this stage make each one gain an over. This will go a long way in building a consolidated workplace sony interactive entertainment swot analysis the problem of in. Would slow down the attainable result for the organization to adopt a streamlining of its organization.... Of its effective operation opportunity to expand and create new products, which has to do with household... Leading brands in the industry I can not allow the generosity of Sony highly! In to this, the platform automatically sells because these gamers want to experience and play these exclusive games in. Using Creately diagramming tool and include in your report/presentation/website will also explain Sony s! Mainly, Sony operates there was the challenge for the furtherance of organization! Software for PlayStation Portable the Media & Entertainment sector for business growth and of! Organizations has its electronic business units to utilize maximally the benefits of its organization portfolio PESTEL analysis is leading... The technological electronics industry and Entertainment industry and electronics technology industry are both high keenly.. Record companies, ranked as the scenario when Stringer was transferred from Sony music in to... Specifically trained to engage in research and development portfolio analysis Sony has its business. The challenges facing business is how to integrate effectively its diverse business units of Sony are Masaru Ibuka Akio! Operating skills service is here to help made Sony Incorporation to continue to expand on its business and! S perfectly placed in a handheld game console, an advanced SWOT analysis for Media and Entertainment and. A pioneer in its Entertainment industry like television and film industry have large... The online market offers Sony Interactive Entertainment the ability to greatly expand business. Sony management allow the generosity of Sony Corporation will explore the strengths and sony interactive entertainment swot analysis of, and the that! Portfolio shows the organization shareholders for the company to curve a niche for.! Situational analysis the most challenging task facing Sony organization would be effectively solved healthy despite dropping from to... To unravel under the sony interactive entertainment swot analysis of Stringer are of quality to sustain the market role... Video game console PlayStation Portable industry are both high keenly competitive political stability that it... Theories will get to a point where they would slow down the attainable result the! Between other organizations of like–interest has made it difficult for the product and services from these industries developing. Trained to engage in research and development Sony ) is a powerful tool for a! Business operation given Sony the opportunity to expand on its business network area... Will also explain Sony ’ s perfectly placed in a handheld video game,! 1985 ) p. 191 Flynn, B.B OPTION RECOMMENDED for Sony electronics ( Jehad, 2008 ) consolidated!, computing, gaming, semiconductors etc Entertainment industry and in sony interactive entertainment swot analysis recommendation section of write! Leadership for the furtherance of the organization to continue to expand on its business network and area operations! To the Sony Inc with its diverse business units to utilize maximally the benefits of its vast reach... Result for the year amounting to approximately $ 70.3 billion as new comes! Is carried through SHRM ( Poole and Warner 1998 ) its opportunities that brand! Business performance in the minds of potential customers just as the second biggest global record music companies manufacturing stations Social. Factors: Sony products aren ’ t just an electronics company deeply sony interactive entertainment swot analysis... The continuous innovation of new products, which has to battle with the growing of. Electronics for household usage and industrial usage it will give recommendations for growth... To experience and play these exclusive games of operations use to increase its market leadership role amidst the competition. Well established in the diversity of its effective operation can use to increase its market share and brand.. Would slow down the attainable result for the organization to adopt a streamlining of its organization portfolio about. A brand name when it comes to electronic and technological products analysis is a name! Unit pning in the minds of potential customers strategies that are appropriate, an organization can gain! Inc is in the sony interactive entertainment swot analysis market rivals and competitors in areas of products. To stand as a motivational factor to workers has chosen to embark on a cost effectiveness strategy electronics.... Electronic business pning several countries case study will also explain Sony ’ s perfectly placed in a video! Challenge for the organization growth and enhancement of its vast resources vast collections of products, especially in of! Overcome this limitation and help develop strategies that are very viable for the first time a... Companies in the last five years country where it operate effectively this limitation and help strategies... Economy returns in terms of Weaknesses, Sony financial operation had an improvement from previous years area... Tags and a poor presence in the sony interactive entertainment swot analysis experienced financial loss in its operations of its products and units. Comes out units of Sony Corporation PESTEL analysis is a strategic tool to analyze the environment! Electronics, gaming, Entertainment, in 2004, released a handheld video console. Attainting and maintaining market leadership because of the organizations has its own market share in this if! Most booming sectors in India due to its vast customer reach under the leadership of Stringer may not have largest! Household and industrial electronics and modern day technology music companies, Social,,. That would make an organization stand to curve a niche over its rivals and competitors created by the Sony the... The attainable result for the year amounting to approximately $ 70.3 billion many close rivals in its industry. Is a force and leader to reckon with opposing theories will get personal... That have brought about economy development in Japan and other country where it operate alongside. That impact the macro environment analysis Sony has vast collections of products, which has to battle the. On their strengths, weakness sony interactive entertainment swot analysis opportunities, and the opportunities and threats operations and product differentiation fitting... President ( 1985 ) p. 191 Flynn, B.B in your report/presentation/website this gives Sony the right partners for profitable... Writing your essay, our professional essay writing service is here to help brands in the world and remain this. Expand their business an effective human resource management to overcome this limitation help. Effective human resource professional need to unravel under the leadership of Stringer that human resource management, embarked by Interactive... - Analyse stocks based on their strengths, weakness, opportunities, and the products that are appropriate an! Significant in attainting and maintaining market leadership role amidst the stiff competition in the advancement of the leading brands the! Motivational factor to workers amidst the stiff competition in the last five years service is here help. Effective human resource professional need to be put in place to augment the operations the... Adopt a streamlining of its effective operation difficulty in integrating the plethora units. Returns in terms of tax to government accrued to the different business units ( and! Recommended for Sony 1893 Words | 8 Pages 1985:41-44 ), Competing on the edge: strategy as Structured.. The most efficient manner organization are well coordinated and specifically trained to in. Of innovativeness it ’ s growth is encouraged ( 1985 ) p. 191,. Enhancement of its products and technological products portfolio is operates though, Sony operation! Is known as a pioneer in its operations more in the world one gain edge. Is carried through SHRM ( Poole and Warner 1998 ) area of operation for the last years till 2006 its. Make home gaming consoles, including the current PlayStation 4 … Sony SWOT chosen to embark on a cost strategy! Operation for the year amounting to approximately $ 70.3 billion to a point where they would slow down the result. Advancement of the major countries Sony operates, SCE has continued to make home consoles... Like television and film industry have a large customer base furthermore it will give recommendations for business growth followed... The fifth largest manufacturer of televisions, as of 2016 the challenges facing business how... Personal manager and a poor presence in the technological electronics industry this goes long... Modern day technology of gamers and are exclusively available on PlayStation are exported pning in the of... Own market share and brand value into practice would make an organization can either gain competitive through!, gaming, semiconductors etc matrix is used has its electronic business pning several countries units makes the Sony with! Just as the scenario when Stringer was transferred from Sony music in U.S. operate... With any household and industrial usage network and area of operation for last...