Course: POM, Semester: 2016-Q3

Tutor’s name: Lê Thanh Xuân

Date of submission:
Submitted by:

Family Name Given Name Student No Signature

1. Lương Thắng 3915ISB0072

2. Phan Linh 3915ISB0062
3. Diệp Nhật 3915ISB0070
4. Nguyễn Việt 3914ISB0089

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 EXECUTIVE SUMMARY

This report analyses how Sony Corporation succeed by applying management skills

which base on theories based on textbook and practical experiences. Sony Corporation is

known as a Japanese multinational conglomerate corporation headquartered with diversified

business includes consumer and professional electronics, gaming, entertainment and financial

services for a long history. However, Sony Mobile Communications Inc. (formerly Sony

Ericsson) - is a multinational mobile phone manufacturing company headquartered in Tokyo,

Japan and a wholly owned subsidiary of Sony Corporation – is concentrated in this report

which also mentions about planning work activities and organizational structures of the Sony

Mobile. The results of the report will describe in details in the later chapters.

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Table of contends Page

Introduction 5

Industrial Environment 6

Objective and scope of report 8

Background of company 9

SWOT 10

Issues 12

Strategies 15

Mission 17

Cooperate social responsibility 18

Conclusion 20

References 21

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 INTRODUCTION

In today’s society, there are several companies going bankrupt since the economic

crisis over a period. Surviving in this competitive industrial market in long-run is a severe

mission for all businesses so a key to success in management is having good time

management skills which included how to set goals or how to delegate work tasks to others.

In fact, applying the theories from textbook to the reality is a giant concern. Knowledge,

moreover, which is comprehended from books and during the time studying at school, is not

enough. Therefore, having an observation from the relation between theory and real

experience by making strategies in both business and marketing will help young business

man to be reach the goals in future. However, it is not all related to textbook as not all

companies have specific goals to realize and also their strategies which can help them to

compete others.

According to theories from textbooks as chapter 2, chapter 6, chapter 12 and some parts in

each individual, so pointing out specific solutions in order to deal with obstacles as real

managers and also to attempt challenges. Hence, understanding managing human resources

(chapter 12), making decisions (chapter 2), and managing social responsibility and ethics

(chapter 6) in which important strategies are shown out.

In this report, Sony mobile communication is chosen for our assessment between theories and

practice, then we can seek which strategy is the best for the development the company in

long-run.

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 INDUSTRIAL ENVIRONMENT

The smartphone has ushered in a new generation of mobile Internet devices. A small

smartphone that is only four inches long enables the sharing of real-time information and

knowledge, and it can transform lifestyles. People use smartphones to obtain, share and

exchange information whenever they desire. The speed of information processing is

accelerating, and real-time communication is becoming universal and is no longer

constrained by time and space. Through its ripple effects, the smartphone makes it possible

for people to realize a genuinely ubiquitous life in a variety of areas, such as business,

education, social interaction, and leisure.

According to preliminary data from the International Data Corporation (IDC) Worldwide

Quarterly Mobile Phone Tracker, smartphone vendors shipped a total of 399.5 million units

during the fourth quarter of 2015 (4Q15), resulting in 5.7% growth when compared to the

377.8 million units shipped in the last quarter of 2014. For the full year, the worldwide

smartphone market saw a total of 1432.9 million units shipped, marking the highest year of

shipments on record, up 10.1% from the 1301.7 million units shipped in 2014.

The digital transformation we are witnessing across most industry sectors and throughout the

world presents a clear opportunity for players from across the mobile ecosystem. The

challenge is to seize the opportunity and to respond through service innovation. Against the

backdrop of a renewed and flexible regulatory environment, consumers and society as a

whole will reap the benefits of significant technological and socio-economic development. In

such an extraordinarily competitive market with uncountable of brands and devices, a

company that has it own signature remain over time in each product with marvelous quality -

Sony.

Sony is uniquely positioned to be the leading electronics and entertainment company in the

world. Moreover, Sony Mobile has since taken additional, decisive steps to reinforce

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convergence of its mobile business. In addition to enhancing Sony Mobile's operational

capabilities, including time to market and supply chain management, these moves sought to

accelerate integration with the wider Sony Group and reinforce Sony Mobile's development

prowess by. These moves were also in line with Sony Mobile's basic strategy, which focuses

on creating and delivering winning products, building sales and marketing success, and

ensuring operational excellence in execution. Through its Xperia™ smartphone and tablet

portfolio, Sony Mobile delivers the best of Sony technology, premium content and services,

and easy connectivity to Sony’s world of networked entertainment experiences. At Sony, the

mission is to be a company that inspires and fulfills customer’s curiosity. Their unlimited

passion for technology, content and services, and relentless pursuit of innovation, drives

people to deliver ground-breaking new excitement and entertainment in ways that only Sony

can. Creating unique new cultures and experiences, also to move end-users emotionally.

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 OBJECTIVE AND SCOPE OF THE REPORT

Every time business organization that comes into contact with customers, they

develop a perception in the mind of the customers. Today every organization needs to know

the perception in the mind of the customers, as the market is highly competitive. Nonetheless,

organization should identify their own strengths and weaknesses in order to improve and

enhance the product line that to gain the demand of the customers along with the perception

of the market. Especially in the mobile sector as there are many competitors, it is important to

leave a positive impact on the customers with providing them high-end quality build product

to gain the advantage over the competitors. The final decision of transaction is totally

depended on the consumer, consumers may have different perception for their satisfaction for

particular brand and company has to fulfill consumer’s requirement. Hence, this report is

written to identify and analyze the current strategy that Sony adapts in different levels and

suggest certain tactics to drive the Mobile department of Sony Corporation to the leading

position in market.

ϖ To recognize the brand personality, brand equity and brand image of Xperia

Smartphones.

ϖ To identify the SWOT of Sony Mobile Communications.

ϖ To find out which common issues that company are facing and suggest solutions.

ϖ To make recommendations on how Sony smartphones can improve its position in the

market.

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 BACKGROUND OF SONY COMPANY

SMC is a Japanese multinational telecommunications company with headquartered in

Tokyo, Japan, which is wholly owned by Sony Corporation. Established in 1st October 2001

under the name of Sony Ericsson as a joint venture between Sony and Ericsson, the Swedish

telecommunications equipment company, it has been studying research and development

facilities in several countries including Japan, India, Sweden, China and United States… At

the time, initial sales were rocky, and the company posted losses in 2001 and 2002. However,

SMC reached a profit in 2003 thank to the decision of distinguishing itself with multimedia-

capable mobile phones with cameras. In 27th October 2011, Sony acquired Ericsson's stake

in Sony Ericsson for $1.47 billion, making the mobile handset business a wholly owned

subsidiary of Sony. In 2009, SMC became the fourth-largest mobile phone manufacturer in

the world with 9.8 million units shipped. In addition, Sony Mobile Communications Inc. is a

globally registered technology brand, with a long history of serving customers, delivering

products that receive high ratings from experts around the world. Sony Mobile

Communications now focuses exclusively on the smartphone market under the Xperia name.

Since revealing products with excellent quality and high quality service, the company had

won the trust of consumers and become famous brand products in the electronic industry, in

the year 2013, Sony contributed to two percent of the mobile phone market with 37 million

mobile phones sold.

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 SWOT

The Sony Mobile Company’s SWOT analysis illustrates that the company’ strengths

greatly outweigh its weakness. 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.

Firstly, the greatest strength of Sony Mobile Communications Inc. is the brand name which is

well regarded amongst all the consumers. The brand awareness of the company is also really

good that is recognized in all major markets since Sony brand is considered “one of the

world’s most recognizable and trusted brands” and was ranked 76th in the World's Most

Valuable Brands 2016 which is measured by looking at the financial numbers with estimated

7.6 billion dollars (Forbes, 2016). In addition, one of the popular Sony’s strength is their

ability to produce innovative and qualified products. According to Sony website, May 7,

2016 marked the 70th anniversary of Sony's founding, based on the spirit of innovation and

challenge expressed by Sony co-founder Masaru Ibuka in the Company's founding

prospectus, Sony will continue its mission of being a company that provides customers with

kando - to move them emotionally - and inspires and fulfils their curiosity. Sony also will

continue to focus on transforming itself into a highly profitable enterprise and creating new

businesses. Another strength of Sony is their ability to be successful in several different

markets that are involved in electronics, entertainment, and insurance and financing. They

have made an impact in the video game market, the PC market, and especially the television

market and there are still numerous others.

Secondly, the Sony company has two main point of weakness. The high cost of media

production, especially in the premium market is under threat from lower-cost Chinese

manufacturers such as Lenovo, Huawei and Xiaomi, whose product design, build quality and

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functionality is improving to a level. According to International Data Corporation, Sony's

share of the smartphone market declined to 3.1% in the year to June 2014 (June 2013: 4.0%).

In contrast Huawei's share rose to 6.7% from 4.3%, Lenovo to 5.2% from 4.7%, and Xiaomi

to 4.6% from 1.7%. Moreover, a major weakness on the part of Sony company is that the

distribution channel is ineffective. According to CBS News, Sony Company is one of ten

companies with insanely bad marketing.

Next, Sony Electronics Company is the world’s second largest consumer electronics maker

that has a lot of opportunities ahead of them compared to some of their competitors. In

today’s society, there are more and more demand for luxury products from high end user –

Premium phones will give it a much required boost so that it can penetrate the market better.

According to Global Powers of Luxury Goods 2015, the relationship between digital and

luxury can no longer be ignored. Technology will continue to influence the entire value chain

within the sector. Besides, screen blast is a relatively new product from Sony which is a

software program that lets people edit, enhance, and share digital videos, photos, or music

files so these are opportunities for Sony due to the fact that their new products are in

accordance with modern trends.

Lastly, a common threat facing any company in sales is competition. For example, Sony

faces price competition from competitors such as Samsung and LG, who are gaining traction

with lower-cost products such as mobile devices. As well as, Sony's online network may face

threats from hackers. In the condition that the company's network is hacked, customer

information can be leaking such as credit-card data. Furthermore, the Sony Mobile

Communications Inc. has head office located in Japan where usually appear disasters such as

earthquake or tsunami. For instance, Sony was seriously impacted by the 2016 Kumamoto

earthquake (The Japan Times, 2016).

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 ISSUES

The first issue to consider is the reason why Sony fall before other opponents. In this

report, we focus on Samsung and Oppo. Each mobile brand has 3 general types of products:

The upper class, the middle class and the first line class. As well as Samsung, Sony’s

products spreads form the upper to the first line class, whereas Oppo tends to release the

middle and the first line class. The following lines analyses the differences between the

working styles of this two brands and Sony:

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Samsung Sony Oppo

Upper and middle Upper, middle and first

-Samsung distribute their campuses -Sony is too conservative in -Oppo distribute their campuses

widely around the world. Their global market. The establishment equally around the world. Their

marketing projects are developed of the company in their own marketing projects are

strongly: advertisement on TV domestic trade (Japan) is developed logically: Celebrities

including famous celebrities, good extremely strong while the are invited for advertisement on

script and amazing sound effect; distribution of their products in TV, background music is

global promotion are updated international trade is not well catchy. The global price and

frequently and the connection with invested: marketing strategies are promotion is the same with

Internet provider are fairly doubtful, promotions for those in domestic market.

separated. consumer are not good and the

-The products of Oppo is cheap
connection with Internet providers
-Samsung makes their own and medium, which is suitable
is weak.
components for their own products, for the majority of consumer to

which makes their expense on - Sony has to pay for a giant cost buy, together with strong

production much lower. Therefore, due to their buying components international advertisement,

the price of their electronics from other company to assemble Oppo’s products defeat the first-

devices is reasonable, which can be to their products, which leads to line and middle class products

combined with the former factor to the illogical price on some of Sony.

defeat the upper and middle class specific merchandise.

product of Sony.

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 2

Sony, in current view of situation tilted, still reaches the finance goal during the period that

the huge amount of Sony’s customers desire to use their quintessence completed products,

however, Sony couldn't be propped up the strong competition of Scientific and technological

revolution among others such as Samsung, Apple, HTC, Oppo because of the failure in use of

their advantages and the failure of association of their several individuals' professional

knowledge. They have gained the vital amount of individuals' professional knowledge, for

instance, they have been being divided to develop such as the individual field of megaphone,

loudspeaker, headphone; the individual field of mobile; as well as for laptop field and

television field. Moreover, Sony have not known how to co-ordinate their clever application

of each individuals' professional knowledge gained in several years that they had spent to

approach their potential market and potential customers as well.

Sony mobile company may have broken through into the phone market shortly after the turn

of the century, but the Japanese manufacturer quickly rose to the top with products that

redefined the way we use our smartphones. However, there are still many challenges faced in

this market which is one of the most attractive industry at the moment.

Three of the biggest challenges currently facing mobile operators is the increasing demand

for capacity.

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 STRATEGIES

To overcome challenges, there are some strategies suggesting which are reasonable and

suitable to apply to Sony Company.

In recent years, the development of Sony is getting better due to the elimination of the first-

line class product, which help Sony focusing on releasing number of excellent models. Sony

is now on the way of competing with Samsung on sound affection, water proofing, modern

screen, … This is also the solution for the first given issue. To continue investing in high-

quality products, besides, spreading and strongly contributing in global market, being open-

minded and take care of the advertisement as well as promotion and Internet provider

connection in other countries not their hometown.

Secondly, the organization is an organic firm called Sony which is a leading manufacturer of

audio, video, communications, and information technology products for the consumer and

professional markets. There is a CEO in the headquarter who has developed Sony into

different departments where have five main managers under the director. Sony’s

organizational structure is being formed. However, this organization structure has no

connection between each sections; for example, there are ineffective distribution channels.

Consequently, they should change from original structures to matrix structure:

- Original structures – Team Structure: is one in which the entire organization is made up of

work teams that do the organization’s work. In this structure, employee empowerment is

crucial because no line of managerial authority flows from top to bottom. Rather, employee

teams design and do work in the way they think is best, but the teams are also held

responsible for all work performance results in their respective areas.

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- The matrix structure assigns specialists from different functional departments to work on

projects being led by a project manager.

As a result, departments may coordinate closely that help Sony company works more

effectively and efficiently.

Lastly, Sony is falling behind competitors so the company should prioritize the generation of

steady profit and positive cash flow for Imaging Products & Solutions and Video & Sound.

For example, in the smartphone and tablet businesses where continued market growth is

anticipated, Sony will achieve goal for further business growth while also enhancing

profitability. The Company also intended for executing the timely launch of new and highly

competitive products that build on the success of Xperia™ Z, which has been received across

markets worldwide. By further strengthening relations with major operators globally and

expanding sales channels with a stable volume, Sony is seeking to secure a leading position

in each of its focus markets around the globe.

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 MISSION

Sony is committed to developing a wide range of innovative products and multimedia

services that challenge the way consumers access and enjoy digital entertainment. By

ensuring synergy between businesses within the organization, Sony is constantly striving to

create exciting new worlds of entertainment that can be experienced on a variety of different

products. Moreover, the level of saturation within the electronics industry is placing huge

difficulties and pressures on Sony in achieving long term competitive advantage. However,

The Sony Mobile Communications appears to be striving, achieving record growth to the

point where analysts have said it could become the world’s largest electronics industry with

time. The purpose of this paper is to understand what origins have driven the success of the

Sony organization.

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 CORPORATE SOCIAL RESPONSBILITY

Sony's mission is to inspire curiosity, providing deeply appealing products, content,

and services that excite customers all over the world. The Sony Group conducts business in a

vast range of fields, so operating conditions and stakeholders' interests and expectations of

Sony vary widely depending on its business presence in each of these areas. Recognizing this

tremendous diversity, Sony is carrying out its corporate social responsibility (CSR) initiatives

as a good global corporate citizen, and have set a CSR agenda comprised of seven key areas

that span broadly across all of Sony's specific businesses: environment, human resources,

quality and services, community engagement, corporate governance, compliance and

responsible sourcing. By operating businesses that are innovative, ethical, sound and

responsible, we intend to continuously enhance corporate value while striving to help build a

better, more sustainable world for all. The 4 out in front CSR of the company are

Environment, community engagement, human resources and quality and services. This part

of the report aims to focus on the first 2 social responsibilities: Environment and community

engagement.

Firstly, protecting the environment is one of the biggest concerns of SMC. ‘Green

Management 2020’ plan was established as the Road to Zero environmental plan in 2010 in

quest of a zero environmental footprint. Sony’s long-term vision is to complete this

intermediate target set for the 2020 throughout all stages of its product lifecycles and business

activities by 2050. This plan aims for a 30% reduction in the average annual energy

consumption of electronic products, as well as other ambitious environmental goals. Besides,

the Project for Forest Conservation in Sumatra is one of the most successful CSR of Sony.

The target was to due to deal with the forests disappearance of Sumatra, Indonesia; which is

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1.25 times as large as Japan and the sixth - largest island in the world. Besides the in - house

activities, the project included 3 steps:

1. Learn: Survey of forests and wildlife

2. Protect forests:

- Joint patrol with local residents to alleviate conflicts with wild animals.

- Elephant patrol for the protection of forests from illegal activities.

3. Link to the future:

- Tree - planting activities to restore forests.

- Support for sustainable local industries

This action of Sony launching activities to support WWF Japan’s forest conservation project

in this World Heritage forest on the island boasted the rich biological diversity to coming

back.

The contribution of Sony on community engagement is an essential issue of the company's

CSR. 2016 is the 10 years’ milestones of the EYE SEE children's photo project, which has

been running for 10 years as a joint partnership between Sony and UNICEF. In the world

today, there are still very large numbers of children who, even if they don't have their own

photo, have never held a digital camera. The EYE SEE children's photo project, with the

spirit of “For the generation”, gives these children the chance to express their feelings about

the world and tell the story of their common problems together with other communities

through the camera filters. Sony believes that making use of digital technology gives voices

to the children who will become the next generation and is a major step forward in solving

global issues surrounding children.

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 CONCLUSION

Designs, manufactures and markets the products of world-renowned brands such as

Samsung, Apple and HTC.

The company has committed not only to boost and update constantly their own technique but

also to minimize all implicit threat from its products. To this end, for responsible sourcing of

the raw materials, Sony Mobile support initiatives of industrial organizations such as

Electronics Industry Citizenship Coalition (EICC) that gives its various brands access to

unique information on what available product materials are free of harmful substances, an

organic whole, and produced in an environmentally friendly manner. This is a tool that allows

the company not only to identify the environmental impacts of its own operations but also

throughout its whole supply chain.

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Forbes Welcome. (2016). Forbes.com. Retrieved 11 September 2016, from

http://www.forbes.com/powerful-brands/list/#tab:rank_search:SONY
SWOT. (2012). sonygroup. Retrieved 11 September 2016, from
https://sonygroup.wordpress.com/swot/
Global Powers of Luxury Goods 2015. (2015). Deloitte. Retrieved 11 September 2016,
from http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Consum
er- Business/gx-cb-global-power-of-luxury-web.pdf
Tobak, S. (2012). 10 companies with insanely bad marketing. Cbsnews.com. Retrieved 11
September 2016, from http://www.cbsnews.com/news/10-companies- with- insanely-
bad-marketing/
2016 Kumamoto Earthquake - The Japan Times. (2016). The Japan Times. Retrieved 11
September 2016, from http://www.japantimes.co.jp/tag/2016-kumamoto- earthquake/

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