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PEST Analysis of Sony Inc. (Make. Believe.)
SUBJECT NAME: Business Environment SUBJECT CODE: MGT511
Submitted To: Mr. Deepak Sharma (Lecturer in Management)
Submitted By: Rahul Attri MBA-Q1103 Roll No-A04
Session: 2011 - 2013
consistent dedication to customer satisfaction and unparalleled standards of service. Environment Policy: Sony India is Committed to comply with Sony Group Enviroment Vision (SGEV) and to continually improve Environment Performance in our office. VAIO. the Science Show held at Apeejay School. Cyber-shot‚ Handycam®. With relentless commitment to quality. A distinctive feature of Sony’s service is its highly motivated and well-trained staff that provides the kind of attentive and sensitive service that is rare today. Sony has established it self as a value leader across its various product categories of Audio/Visual Entertainment products. World Environment Day. 3. In a span of 15 years Sony India has exemplified the quest for excellence in the world of digital lifestyle becoming the country’s foremost consumer electronics brand. 2007. Aimed at fourth graders (nine years). Sony’s exclusive stores ‘Sony Center’ are fast becoming the most visible face of the company in India. superior quality. . Taking its commitment towards the enhancement of scientific literacy forward. November 20. In India. Sony Corporation. 4. Sony India also has a strong service presence across the country with 20 company owned and 190 authorized service centers and 16 exclusive demonstration centers.OVERVIEW OF SONY One of the most recognized brand names in the world today. established its India operations in November 1994. 240 exclusive Sony outlets and 19 direct branch locations. Free Pollution Check Camp: Sony organised free Pollution Check Camp to minimise impact of environment at National Highway as a pollution prevention method to minimize impact on our environment. Sony India donated Potted plants in few Governement Schools and planted trees at various sites. digital concepts and personalized service that has ensured loyal customers and nationwide acclaim in the industry. Business and Professional products. Tree Plantation for clean and green surrounding: On 5th June 2007. Sony India is recognized as a benchmark for new age technology. With brands names such as BRAVIA. 2007. Walkman®. Japan. Sony India has organized the Sony Science Show in Delhi from November 19 – 21. CORPORATE SOCIAL RESPONSIBILITY 1. BRAVIA Theatre. Sheikh Sarai had an audience of over 7000 students from 28 participating schools. Sony has its footprint across all major towns and cities through a distribution network comprising of over 5000 dealers and distributors. Information and Communications‚ Recording Media. 2. Xplod. focusing on the sales and marketing of Sony products in the country. Manned by customer friendly and informed sales persons. Delhi kids become scientists at the Sony Science Show: New Delhi. Sony is committed to ensuring that both the products and the marketing activities employed truly make a difference to people’s lifestyles and offer them new dimensions of enjoyment. Memory Stick™‚ PlayStation®.
making Sony easier to expand. Increase in Taxation by government because of which Sony will have to pay more taxes. Introduction on euro makes trading easier. The policy Protectionism puts barriers on imports into a country to protect domestic producers which can affect the imports of Sony product in a positive light. this creates opportunities for the new products and product improvements and marketing techniques such as the Internet. 2. economic. the exchange may drop in the UK. For example rises in private healthcare and privatisations. Decisions made by government affect every day businesses and can come in the form of policy or legislation. The political factors have a huge influence upon the regulation of businesses. Political factors within Sony Political factors can have a direct impact on the way Sony operates. This means less profit for Sony.PEST ANALYSIS OF SONY Pest analysis is another marketing tool. . Pest analysis examines the changes in the marketplace caused by political. The introduction to the minimum wage affects the employees of Sony as the hourly rate increases each year. The increase in women leaving work. ecommerce. unless they increase prices of items. Economic factors changes include changes such as a recession creating activity at the lower ends of the product price ranges. . which is under the conservative government. Political factors effecting Sony can include the government laws such as 1. Political factors changes involve one party to another who are in control. 4. 3. every time the minimum wage increases. causing redundancies and lower spending levels Social factors changes include changing lifestyles and attitudes. social and technological factors. Also leading to the need for-time saving produces for home Technological factors involves changes as the public see it. Also for instance the rate of interest rates rising depressing businesses.
Analysed from statistics unemployment rates have decreased each year from 2002 to current year. It is a good time for Sony to expand the business further. because of which the sales of Sony decreases resulting in losses to company. resulting in increase or decrease in the interest on borrowings. Change in trade policies by the government helps the other competitors to capture the market share of sony. and there are a lot of substitutes on the market. Like India-Japan new trade agreement helps japnese companies to come in India and this affects the market share of china. 3. The fall in unemployment rates may cause Sony some problems in the process of recruiting new employees in to the business.Economic factors Affecting Sony The economic factors affecting Sony includes: 1. the purchasing power of buyers decreases. Another issue that should be troubling is that Sony's products are quite expensive. 5. Change in interest rates by RBI or any other central bank of a country. . Due to world economic slowdown in 2008-09. When these rates decreases the sony can raise more funds to expand or for any other business purpose at a cheaper costs and when these rates becomes increases. 4. sony will raise comparatively less amount of money from the market. In the developing economies with very low wages Sony may lose its market shares due to outdated pricing strategies. 2.
because Sony. they don’t want to change and adopt new products. so they don’t buy new products launched by sony and they give their negative views about products without even using them. and are very costly despite the greater income they may receive. as any innovative company focuses mainly on young people and brand names matter a lot among the youth. Social factors includes: 1. . These factors affect Sony customers needs and size of potential markets. it has to support youth scientific competitions. Due to expensive products of sony as compared to its competitors products. thus. so the older population don’t go for the products of sony. provide technological solutions and create revolutionary gadgets. For example some Asian and African countries may not be able to afford to buy Sony products. 4. 2. Social factors Social factors include the demographic and cultural aspects of the external environment. So they go for cheaper substitutes available in the market. The older population may not be interested in the latest Sony products include more features. Brand reputation also matters. Some of the people are old fashioned. The older population tend to be interested in the simplicity of products. The social and cultural influences of Sony vary from country to country. 3. Sony has to ensure that its brand is associated with innovation. some of the people are not able to afford their products. Sony’s products are a for the next generation.
adding new features onto products regularly. A business such as Sony who have achieved a breakthrough which is patented is a major sustainable competitive advantage over other competitors. Technological factors includes: 1. Within country there may be a shortage of IT worker which can causes a hinder to Sony. Invention and innovation and Internet. Although this may be an advantage. 4. . Processes. Sony is the pace-setter here. Internet – the use of the Internet for business-to-business transactions. 7. Invention and innovation – The need to create new technology and new productions within Sony can be a major drive for the research and development department within the company. The Chinese electronic products are cheaper as compared to products of sony. besides. within the IT department. So there is a need for sony to make their products available at cheaper costs to various consumer groups. storage and marketing of Sony products can be affected by the increased use of new technology such as televisions are now connected with the D2H service . which sony is not making. it also produces a number of difficulties. Processes – the need to cut costs. like having to introduce new products all the time and engage into wars with competitors over consumer's preferences. 6. 5. Rates of technological changes are speeding. The production. 8. such as relations with the suppliers and supply chain management of Sony is the most important technological change currently affecting Sony. shortage of IT worker can cause inconsistency when a computer breaks. 2. Technological factors of Sony The technological factors include Mechanisation and automation. The way in which Sony respond to developments such as creating new products can determine their competitive future. For example Sony are spending millions on updating. 3. speed up production and compete effectively is a huge driver with Sony.
TV’s. But there is a need to increase its sales in the world market to gain more market share and profits as well. can buy the products. whom the sony is targeting. Sony is having great demand in gaming. due to its quality of products.CONCLUSION AND RECOMMENDATIONS Sony is a leader in electronic products in world market. Sony is not targeting the consumer groups of older ages. no doubt. sony have to improve itself and it must produce the products at a cheaper cost so that all the people. These products are made for the next generation users. Laptop markets in all over the world. So keeping the above given factors in view. they are targeting the young population. There is a need for sony to invest more in R and D works to make the cheaper technology to produce products at cheaper costs. By keeping these factors in mind sony can improve more to become the world leader in electronic products .
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