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 SONY CORPORATION'S
PEST ANALYSIS                                  
Student Name :                       

DANIEL MIRZEA - H2009768

Lecturer's Name : 

YASSER SOROURADIN
             
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 Sony corporation continues its global success by addressing the external
factors and related issues in the remote or macro-environment of its business.
The PEST analysis identifies such external factors in the political, economic,
sociocultural, technological aspects. A PEST analysis determines how these
external factors create opportunities and threats significant in
the consumer electronics, gaming, entertainment, and financial services
markets. The company must effectively consider these factors in its strategic
decision-making. Including the results of the PEST analysis can increase the
suitability of Sony's strategies with regard to the remote or macro-environment
of the business

A PEST analysis of Sony Corporation considers the external factors in the

remote or macro-environment and financial services markets. Investors and
managers can use the analysis in evaluating Sony's strategies. 
 Political Factors Affecting Sony's Business

   Political conditions affect the markets where Sony operates. This aspect of the PEST analysis
considers the influence of governmental activity on the remote or macro-environment of the
company. The following political extern factors are significant in Sony's case:

   1. Political stability of biggest markets

   2. Increasing governmental support for online business 
   3. Increasing governmental support for data security 

  Sony Corporation benefits from the political stability in majority of the biggest markets. This
stability corresponds to the minimization of political barriers in the remote or macro-
environment, thereby presenting opportunities for business expansion. In addition, Sony has
the opportunity to grow based on the increased governmental support for data
security. Governments are now increasing their efforts for data security, which supports the
growth of businesses with online operations. In relation, governments are developing additional
measures to support online business. This external factor creates opportunities for Sony to
enhance its online operations. For example, the company can expand its online services in
relation to its gaming products. In this aspect of the PEST analysis, Sony has growth
opportunities based on the political stability of the biggest markets.
  Economic Factors Important to Sony Corporation
   Sony performance depends on economic trends. This aspect of the PEST analysis identifies the
economic conditions significant to the business. Sony needs to consider the following economic
external factors in its remote or macro-environment: 

  1. High growth of developing markets 

  2. Economic stability of developed markets 
  3. Increasing disposable incomes 

  Sony has the opportunity to grow alongside the economic growth in developing markets. These
markets have highest growth rates, which can boost the company's overall revenues. In addition, the
economic stability of developed markets presents opportunities for Sony to enhance its operations,
while experiencing minimal market-based risks. Another consideration is the increasing level of
disposable income worldwide. This external factor creates opportunities for Sony to grow its
revenues. For example, the company can market the PlayStation more aggressively, capable of
buying the product. Based on this aspect of the PEST analysis of Sony, economic conditions present
opportunities in the remote or macro-environment.
  Social/Sociocultural Factors Influencing Sony’s Business Environment

   Social trends affect the responses of customers to Sony’s products. This aspect of the PEST
analysis determines the effects of social or sociocultural conditions on the remote or macro-
environment of businesses. The following sociocultural external factors are relevant in the case of
Sony Corporation:

   1. Increasing adoption of online gaming 

   2. Improving wealth distribution
   3. Increasing openness toward leisure

   The increasing adoption of online gaming and the improving wealth distribution create more
opportunities for Sony to increase its revenues from the sale of its gaming products. For example,
the company can expect potential increases in PlayStation sales revenues, as more people are likely
to purchase the product. In addition, Sony can boost its sales revenues based on increasing
openness toward leisure. This external factor highlights the benefit of marketing gaming and
entertainment products to address the leisure needs of target customers. This aspect of the PEST
analysis shows that sociocultural conditions lead to significant growth opportunities in Sony’s remote
or macro-environment.
  Technological Factors in Sony’s Business

   Sony depends on technologies used in its business, and technologies that facilitate the use or
consumption of its products. The effects of technological trends and conditions on the remote or
macro-environment of firms are considered in this aspect of the PEST analysis. Sony must
address the following technological external factors:

   1. Increasing dependence on digital technologies 

   2. High rate of adoption of mobile technologies 
   3. High rate of R&D activity 

   Sony Corporation has growth opportunities based on the increasing dependence on digital
technologies. This external factor points to increasing individual and organizational demand for
digital technologies. For example, the integration of digital technology in smart homes presents
new markets or market expansion opportunities for Sony. In relation, the company can exploit the
high rate of adoption of mobile technologies by innovating its mobile devices for higher
competitiveness and revenue generation. On the other hand, the high rate of research and
development (R&D) activity among firms increases their competitiveness against Sony. This
external factor is a threat because it creates more challenges against the company. Nonetheless,
based on the same external factor, Sony has opportunities to grow its electronics, gaming,
entertainment and financial services businesses. For instance, the company can use its R&D
investment to develop competitive advantage to support the differentiation generic strategy.
   References

 Dockalikova, I., & Klozikova, J. (2014, November). MCDM Methods in Practice:

Determining the Significance of PESTEL Analysis Criteria. In European Conference on
Management, Leadership & Governance (p. 418). Academic Conferences International
Limited.
 Housing Industry Association (2011). An Introduction to PESTLE Analysis. HIA Ltd.
 Murphey, M., & Gause, R. (1974). UCF Research Guides. Industry Analysis. PESTLE
Analysis. Business Horizons, 17(5), 27-38.
 Parcell, J. (2015). 
Trends on Tuesday: Smartphone Market Growth Makes Mobile-Friendly a Must. U.S.
General Services Administration.
 Sony Corporation – Form 20-F.