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Sony Case Study

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SWOT Analysis for Sony:

Strengths:

They are experienced, global players. Sony has extended to Europe and France during the 60s and 70s. They are an important global player prior maximum of their competitors in market came into being. Next, they have the widest variety. This company has been catering to the needs of the overall market, ensuring high profits and sustainability in the long term. From entertainment and mobile phones to home appliances, they have provided a broad range of consumer services and products. Again, there are quality products. Constantly providing high-quality products is simpler than is done despite the interest of esteemed customers in the core. Their broad investment in research and development has helped them to deliver products of high quality consistently. Further, they are a valuable brand. From the time it was developed, they have been obsessively emphasising fulfilling their consumer needs. They have enabled their business in nurturing largely expensive brands. Sony was ranked at 39 in 2019 as the top regarded company and world’s most valuable brand’s list’s 60th position. Further, they have been largely innovative. Next, they have been largely innovative. Sony is seen to be the most innovative organisation, having contributed or invented developing a revolutionary level of products for consumers. For example, there are Crustal LED TV, compact disc, Walkman, VCR, Blue-Ray disc and Color TV. Immensely they have put a contribution towards markets for consumer electronics. They have a loyal customer base. The company is amassed with a loyal and large consumer base. Their loyalty program for gamers through PlayStation have assured that they must never think about transforming towards competitors.

Weakness:

Sony is analysed to be having over-depending on electronics. They have been relying largely on electronics and especially smartphone image sensors, cameras and TV’s. During the last part of financial year of 2019 or 2020, their operating costs have declined by 55%. This is because of the dramatic decrease that is for electronics. Besides, there is negative publicity.  As Sony got hacked, that has been exposing trade secrets to its competitors and creating an idea of incompetence on consumers. They got hacked in 2014 that resulted in exposing sensitive secrets of the trade, straining connections with other organizations. Next, there are expensive products. Irrespective of products, their cost is a matter. They have offered premium products. This is with greater price tags. It is beyond maximum consumers. Here, a vital weakness as this cost has been discouraging a huge amount of effective customers. Besides, there is poor marketing. As compared to competitors such as Xbox and Apple, their marketing efficiencies, along with promotional tasks, are substantially lower and weak. Their consumer products need extensive promotion and marketing for selling. This is irrespective of reputation and quality. You should check plagiarism of your case study assignment.

Opportunities:

Sony has concentrated on emerging economies. IMF or The International Monetary Fund projects that their financial development has been quicker as per rising in market at 5% than under the developed markets. This is at 2% during coming time. The company has expanded their operations towards emerging states of economic conditions and has been exploiting rise in purchasing power at the markets. Further, there is a strengthening of medical imaging. Apart from that, a market of medical displays has been projected to develop at a CAGR of 4.4%. This is from 2018 to 2025. Moreover, the company has been operating in that area and just has needed to strengthen its division of imaging and tap into projected development. Further, they have been diversifying their offerings. Though the PlayStation of Sony has been an important role player within gaming, the categorization has been found to be lacking diversification. Mobile games for any person has been raising their company with the scope of diversifying their gaming division for providing more level of games of mobile-based. Apart from that, they have to extend with the help of acquisition, rather than over-depending on market of consumer electronics. Here, Sony has been leveraging its huge economic resources. This is to gain an innovative level of start-ups. This is within various lucrative areas such as software development.

Threats:

There is a devastation of recession. The financial devastation that was left behind due to the present pandemic has been forcing nations deeper towards recessions. As any economic hardship is found, costly premium products have been important for products of Sony, which was the initial causalities. Apart from that, stiff competition has been there. From gaming’s Nintendo, mobile’s Samsung and TV’s in LG, they have faced strong competition. This is at every sector of emphasis.  In many countries, their sales are decreasing in a row for three years. This happens as competitors are reducing market share. They are losing profitability as old and new competitors on their game. Again, there are various developments in technology. Though it is researched that technological developments are welcomed every time, this has connected the space between newcomers and players. For the past decade, developments in technology has been enabling newcomers such as TCL and Techno. This is to provide quality level products. This is for substituting products of Sony at cheaper cost. Further, Sony has encountered market oversaturation. Their mobile has been forced to move out of Southwest Asian regions. This is after the rise in the supply of present-day mobile phones that resulted in oversaturation. Since some of the organizations are entering to market of Sony, profitability and demand of their products are continuing to decline. After that, there are problems with the global pandemic. Businesses throughout the world are seen to be struggling with uncertainty and low demand because of this issue. The business’ operating profit during the initial months of 2020 has decreased by beyond thirty per cent to the minimum from 4 years. As the case worsens or persist, the harm to the economic wellness of Sony can be reversed again. Besides, Sony has been facing risks due to hackers. Organizations operating gaming sector, electronics and films have remained susceptible to threats that have been posted from the end of hackers. It has cost numerous lawsuits and losses. For instance, Sony Pictures have encountered far-reaching results due to the breach. Lastly, Soy has faced a rise in counterfeit. Their businesses in fake products have been standing at 3.3% of international trade and nations to increase. Different premium products like gaming consoles, phones and TVs are seen to be main target.

PESTLE Analysis:

  • Political factors:                                                                                   
    • Different political situations are affecting Sony’s market. The present aspect of this evaluation has been considering the effect of government on the macro-environment or remote situation of their business. There are few external political factors that are important for their case. Next, political abilities have been working as the greatest opportunity of markets. Further, there is a rise in data security from governmental support as an opportunity. Moreover, there is a rise in governmental support that acts as another opportunity for online business.                                                                                                                                   
  • Economic factors:                                                                                  
    • The performance of Sony relies on financial trends. The aspect of the assessment determines financial situations important for any business. The company requires to take into consideration of different economic factors that are in their macro or remote environment. They are all opportunities. There is a large development on growing markets, financial stability of developed markets, financial stability of their developed markets and rise in disposable incomes.                                                                      
  • Sociocultural or social factors affecting their business environment:                                                                                                                                                                      
    • Their social trends have been affecting the reactions of Sony’s products customers. The current aspect indicates the impacts of their socio-cultural and social situations on the macro or remote environment of a workplace. There are few external sociocultural factors that are important for the company. There is a rise in adoption for opportunities of online gaming, opportunities to develop wealth distribution and scopes to rise openness on leisure. Moreover, the rise in adoption of gaming over the Internet and development distribution of wealth has generated more scopes. This is to enhance distribution of wealth and generate more scopes for them. It can enhance their revenues from selling game products. Here, Sony has been expecting a potential rise in sales revenues of PlayStation and more and more people are purchasing products likely.                                                                                     
  • Technological Factors:                                                                                           
    • The organization has been depending on technologies that are applied in technologies. This facilitates the consumption or use of their products. Here, the influences of technological conditions and trends on macro-environment or remote of Sony are seen in this analysis. They should be addressing some of the external factors as opportunities. There is a rise in dependence on various digital technologies, a greater rate of adopting mobile technologies and a greater rate of research and development activity as a threat and opportunity. They have development opportunities as per the rise in reliance on digital technologies. In this situation, integration of digital technology within smart homes indicating market expansion or new markets scopes meant for the company.                                       
  • Environmental and ecological factors:                                                      
    • The situations of the natural environment have been affecting them along with their markets. That aspect of this analysis is covering influences of conditions and trends in remote or macro-environment for Sony. For their case study, there some external factors that important. For opportunities, there is a rise in scopes on business sustainability, a rise in demand for products that are environmentally friendly and a rise in the presence of recycling facilities. If you are looking for such relevant case study factor. then take help from Allessaywriter.com's expert.

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