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Strategic Analysis of Sony
Strategic Analysis of Sony
Presented By:
Chand Mohd
MBA-1st Year
14HM07
Overview
• Introduction
• Vision, Mission
• Core Values
• Value Chain Analysis
• Porter’s Five Forces Analysis
• SWOT Analysis
• Environmental Analysis
• Competitive Analysis
Introduction
• Sony is a Japanese multinational conglomerate
headquartered in Tokyo, Japan, started in 1946, founded by
Akio Morita.
Vision
“To become a leading global provider of networked
consumer electronics, entertainment and services.”
Mission
“ To experience the joy of advancing and applying
technology for the benefit of the public.”
Core Values
Threat of New
Entrants
Threat of
Bargaining Intensity of
substitute
power of competitive
products or
suppliers rivalry
services
Bargaining
power of
customers
(buyers)
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
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
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
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
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
SWOT Analysis
STRENGTH
Innovation
Quality
Brand Strength
Product Differentiation
High Specialized Integrated Product & Services
WEAKNESS
Maintain Multiple Function
Product Pricing
Battery Efficiencies
SWOT Analysis
OPPORTUNITIES
T.V Category & Gaming Segment
Investing
Network Initiatives
T.V Business expansion
International Market
THREATS
Competitors Competition