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Strategic Analysis of Sony Corporation
Transcript of Strategic Analysis of Sony Corporation
Thank you for your attention!
Sony has to approach strategic deals and relations with other companies, to get advantage from the competition.
Sony Business Groups
Sony Business Strategy
Sony was founded in 1946 by Masaru Ibuka and Akio Morita.
At first was named Tokyo Tsushin Kogyo, Tokyo Telecommunications Engineering Company, Ltd. (Totsuko).
Today he works in Sony Computer Entertainment and is the CEO of Cellius, a videogame company between Sony and Namco Bandai.
Strengthening core businesses (Digital Imaging, Game, Mobile)
Turning around the television business
Expanding business in emerging markets
Creating new businesses and accelerating innovation
Realigning the business portfolio and optimizing resources
Strategic initiatives of change of the Electronic business
The key of its success is its Brand.
Sony will change!
Sony CEO. Kazuo Hirai
Sony had been since years a strong manufacturer of technology. It should invest more to keep its competitive advantage alive.
The Sony business strategy is focused on the Brand. More than a Product it is a Brand, which generate reliable and high quality.
Sony should give target to each of its division especially in terms of profitability. Structure should be change and timely decision should be taken.
Product development and design strategies should be perused.
It has to take strong and efficient measurements to change what it is wrong and making the good better.
Prepared and Presented by
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.
Porter's Five Forces
Intensity of Competitive Rivalry
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.
Threat of New Entrants
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.
Threat of Substitute Products or Services
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.
Bargaining Power of Customers (Buyers)
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.
Bargaining Power of Suppliers
Branch Strength, Innovation, Quality, Product Differentiation, Highly Specialized integrated Products
Maintain Multiple Function, High Competition, Market Share reducing, Maintaining low cost, Financial Loss
Potential in Mobile, Tablet and Gaming Industry,
Threat from MS in Gaming, Local low cost products with reasonable quality, Global Economic Recession, Internal Structure
Across the world, in all the entertainment and communication sectors in which we operate, every Sony employee is united through a common set of beliefs, ideals and aspirations. This is our Vision.
At Sony, our mission is to be a company that inspires and fulfills your curiosity.
Our unlimited passion for technology, content and services, and relentless pursuit of innovation, drives us to deliver
ground-breaking new excitement and entertainment in ways that only Sony can.
Creating unique new cultures and experiences.
Everything we do, is to move you emotionally.