1.

0 Introduction and company overview

This significant technological enterprise is comprised of several divisions, the most notable of
which are Sony's standing as one of the most important manufacturers of consumer and
professional electronics products, the most important manufacturer of video game consoles,
and the most important publisher of video games. It is one of the most comprehensive media
corporations since, through Sony Entertainment, it is both one of the largest music firms and
one of the largest film studios. This makes it one of the most competitive media companies.

1.1 History of the company

In 1946, Mr. Masaru Ibuka and Mr. Akio Morita were the founders of Tokyo Tsushin Kenkyujo,
which has since fulfilled their names. The year 1958 marked the beginning of operations for
Tokyo Tsushin Kenkyujo, which would later become known as Sony. In 1958, the company
made the official change to "Sony Corporation" as its official corporate name. The current
location of Sony's headquarters is in Minato, which is in Tokyo, Japan. It is a multinational
Japanese corporation that is part of a conglomerate.

1.2 Mission statement

The mission statement of Sony Corporation states that the company would "be a corporation
that supplies consumers with kando," which means to move people emotionally, as well as
arouse and satisfy their curiosity. The mission statement places an emphasis on the relevance
of Kando and what the company accomplishes for its customers.

In their mission statement, Sony Corporation places a significant emphasis on the concept of
kando. When there is this level of concentration, the mission and vision of the company are in
sync with one another. In order for Sony to effectively apply the notion, the objective statement
requires the company to provide goods that elicit an emotional response from customers. For
instance, the PlayStation is successful in attracting and retaining users thanks to the emotional
connection that is built on the game experience. In this context, the second component of Sony's
mission statement focuses on the requirements the corporation must fulfil in order to satisfy its
customers. Given these circumstances, the company needs to both pique and fulfil the
customers' curiosity.
1.3 Product and services

Sony Group Corp produces a wide variety of products, including electronics, semiconductors,
and instruments and gadgets used in the medical field. The company sells a wide range of
electronics, such as televisions, mobile phones, cameras, audio systems, game consoles and
software, semiconductors, batteries, and more. Sony is an entertainment conglomerate that
creates, buys, and sells media including music recordings, movies, and television shows, as
well as running television and digital networks. It also offers banking, financial, and insurance
services, including both life and non-life protection. In order to get their wares out there, they
use a variety of channels, including their own sales subsidiary, distributors, and online sales.
Brands that it sells under include Sony, PlayStation, Walkman, Blu-ray, Cyber-shot, Brava,
Exmor, Experia, and Airpeak.

2.0 Macroenvironment

The PESTEL analysis used by Sony Corporation is a useful strategic tool for assessing the
company's external environment. Sony Corporation's macro environment is affected by several
political, economic, social, technological, environmental, and legal issues.
Not only can Sony be affected by shifts in the electronic equipment industry's external
environment, but so can the entire electronics industry. A company's strategy and the
competitive landscape can be affected by the macroenvironmental forces known as the Porter
Five Forces. They have the potential to affect either the competitive advantage of individual
companies or the profitability of the Consumer Goods sector as a whole.
Analysis of Sony Corporation's operating environment using the PESTEL framework reveals
significant insight into the operational problems posed by the existing macro environment
beyond competitive factors. Sony Corporation, for instance, would be unwise to locate in an
area with a history of political unpredictability even though the industry in question is very
profitable and has significant growth prospects.
Repsol, a major Spanish oil company, faced a similar situation. They launched a highly
profitable business in Argentina, which brought them substantial profits within five to seven
years. However, the company was taken over by a socialist government. Thus, the predicted
gains over a ten-year period never materialised.
2.1 demographic
Grouping People According to Demographics Sony's primary criterion for market
segmentation is customers' median annual household income. The company then sells its
premium-priced BRAVIA TVs to households with middle- to upper-middle-class incomes. But
in recent years, Sony has decided to speed up the transition to high-end models, rather than
focusing on a wide range of TVs. This suggests that Sony is attempting to re-segment the
market in order to define the customer base more precisely it should focus on in order to
maximise profits. Sony also used marital status as a means of categorising its customer base.
Consumers with families or those over the age of 25 (the so-called "early adopters") are the
primary targets of TV product marketing. As evidence, consider Sony's history of being the
industry leader in introducing innovative television technology. Sony's recent introduction of
4K HDTV is only the most recent example.

2.2 economic
Sony makes electronics and many more products. Film, banking, and music use the company's
name. Sony leads in entertainment and manufacturing due to its engagement in both. But
something is wrong because Sony items are luxury. They are for self-indulgence. No one needs
a PlayStation 4 or SONY VAIO laptop. Sony's PlayStation costs $299 USD, while games cost
$10–$60 or more. VAIO laptops cost $300–$2,199.
If money is scarce, SONY will not be a priority. SONY products may gather dust on shop
shelves in areas with high unemployment and economic instability. Because people anxious
about their work position or frantically seeking employment have more anxieties. rent. food.
Thus, everything unsuitable is overlooked. Sony’s entertainment sales depend on a strong
economy. Russia's unstable economy is expected to decrease SONY's profits.

2.2 natural
The local customs of a market and the environmental regulations that exist in that market may
influence the profitability of a business. It is not rare for environmental rules and liability laws
to differ from state to state, even within the same country. This phenomenon is known as
"jurisdictional arbitrariness." For instance, different states in the United States, such as Texas
and Florida, have differing liability requirements in the case of accidents or environmental
disasters. In a similar vein, numerous governments in Europe offer significant financial
incentives to commercial enterprises who are active in the field of renewable energy.
Before expanding into new locations or releasing new products in current ones, businesses have
an obligation to pay careful attention to the environmental restrictions that are in place in the
communities in which they operate.

2.3 technological
Quickly, technology is changing the face of many different markets. The transportation sector
is an excellent example of this. The sector has changed drastically over the past five years, and
the long-standing companies have had little time to adapt. Uber and Lyft have become the
dominant players in the taxi sector. Technology companies like Google are driving the
automation trend, while Tesla is shaking up manufacturing with its electric vehicle revolution.
The rate at which technology is disrupting an industry is another factor that should be
considered by any company conducting technological analysis of that sector. If technology
disruption occurs slowly, businesses will have more time to adapt, but if it occurs quickly, they
may have just a short window in which to do so.
2.4 political & social and cultural
Political considerations have a significant role in determining many of the aspects that have the
potential to influence Sony Corporation's long-term profitability in each nation or region.
Because Sony is active in the electronic industry in more than a dozen countries, the company
is exposed to a wide range of risks on a variety of fronts, including the political, economic, and
social spheres. If you want to be successful in the continuously changing market for electronic
equipment across numerous countries, you need to disperse the systemic risks associated with
the political climate among those countries. The Sony Corporation could conduct an in-depth
analysis of the following factors prior to entering a specific market or making an investment
there.

Individual references
Sony, n.d, Sony History
<https://www.sony.com.hk/aboutsony/html/en/history.jsp>
Pauline Meyer,2017, Sony Corporation’s Vision Statement & Mission Statement
<https://panmore.com/sony-corporation-vision-statement-mission-statement>

CFI Team,2022, Macro Environment, the overall, broader economy and the forces affecting it
<https://corporatefinanceinstitute.com/resources/economics/macro-environment/ >

Fern Fort University Fern Fort University, n.d, Sony Corporation PESTEL & Environment
Analysis
<http://fernfortuniversity.com/term-papers/pestel/nyse4/828-sony-corporation.php>