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