Sony pestle analysis

Introduction

Each letter in Pestle describes each factor affecting the Industry or the sector. The letter P for
Political, includes government policies, trade restrictions, laws, legislation. The letter E for
Economics, includes growth rate in the economy, gross profit, interest rates, etc. The letter S
for Social, includes customers attributions and lifestyles, demographics. The letter T for
Technology includes automation in a particular sector, using technological factors, digital
marketing and others. The letter L for Legal is entirely based on laws and legal procedures,
restrictions in the market. And finally, the letter E for Environment includes every single
factor which affects the environment.

THE MACRO ENVIRONMENTAL FACTORS THAT AFFECT SONY

The Macro environment factors that affect Sony can be analysed using PESTLE analysis
where it is specifying the details of Political, Economic, Social, Technological,
Environmental and Legal factors.

Now let's analyse each of the factors as below:

1. Political Factors:
The external political factor of PESTLE defines how government policy affects a
field. Research on trails and their relationship to systems and government intervention
is sparse. Current research mainly explores the role of state officials in philosophy
around the development of the sector.
Political factors affect the Sony company on the way it operates. This analysis
describes the influence of government regulations on the macro-environment factors.
The following political factors which have a significant impact on the Sony are:
 Political stability of biggest markets.
 Governments increasing the opportunity for data security.
 Government increasing the support for online shopping.
 In majority of the world’s markets, Sony company benefits from the political
decisions that has been taken by the working governments all around the world,
creating them a wide range of opportunities to operate all around the market and also
the removal of governmental constraints in the distant or macro-environment,
allowing businesses to expand. Furthermore, Sony has the potential to expand as a
result of growing government backing for data security. Governments are stepping up
their data security measures, which is helping firms with online operations expand.
Governments are exploring further measures to encourage internet commerce in this
regard. This external aspect provides Sony with opportunity to improve its online
operations. For example, in regard to its gaming items, the corporation may increase
its online services. Sony has growth prospects based on the political stability of the
largest markets in this component of the PESTEL/PESTLE research.
2. Economic Factors
Economic factors of PESTLE are employment opportunities, fiscal implications, and
costs of materials and many more factors which relate to the economic generation of
the Sony company. The following significant economic factors that Sony company
has to consider in macro-environment are:
 Rapid increase in developing markets
 Increase in the demand of the goods with subsequent increase in the economic
growth of the people
 Developed market’s economic stability

Sony has the chance to grow in parallel with the rise of developing regions economies
as with the increase in the economic standards of the people will directly increase the
demand of the goods produced by the Sony company. These markets are growing at
the fastest rates, which might help the company's overall revenue. Furthermore, the
economic stability of established economies provides Sony with chances to expand its
activities while minimising market-based risks. Another factor to consider is the rising
level of disposable income throughout the world. This external aspect provides Sony
with options to increase its income. For example, based on the anticipation that
customers are more capable of purchasing the goods, the corporation can sell the
PlayStation more aggressively. Economic conditions provide opportunities in the
distant or macro-environment, according to this component of Sony's
PESTEL/PESTLE study.
3. Social Factors
This dimension of the general environment represents the demographic
characteristics, norms, customs, and values of the population within which the
organization operates. These factors help a marketer to understand their customers'
needs further and wants by focusing on the social environment and identifying
emerging trends. The aspects under consideration include population trends such as
the population growth rate, age distribution, income distribution, career attitudes,
safety emphasis, health consciousness, lifestyle attitudes, and cultural barriers. The
primary purpose of these factors is to help marketers understand their target
customers. The following socio-cultural environmental external factors that need to be
considered for the Sony company are:
 Online gaming is becoming more popular
 Improving the distribution of wealth
 Increasing people’s willingness to engage in extracurricular activities

Sony has additional options to boost income from the sale of its gaming items as
online gaming becomes more popular and wealth distribution improves. For example,
the corporation can anticipate more PlayStation sales income as more customers are
likely to buy the product. Furthermore, increased openness to leisure can help Sony
increase its sales income. This external element emphasises the value of marketing
gaming and entertainment items to meet target customers' leisure demands. This
element of the PESTEL/PESTLE research demonstrates that in Sony's distant or
macro-environment, sociocultural factors contribute to enormous development
prospects.