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Sony Corporation and Its SWOT and PESTLE Analyses Analytical Essay


Introduction

Sony Corporation is an organisation that primarily deals in the manufacture and distribution of electronic appliances. The corporation is the parent organisation of Sony Group, which was founded in 1946; the corporation manages all the business activities of the entire group.

For instance, the corporation designs, plans, strategizes and manages the manufacture of Sony electronics (Flugge 2008, p. 4). This paper discusses the major achievements of Sony Corporation and presents SWOT and PESTLE analyses of the company.

Major Achievements of Sony Corporation

Sony was the first company to produce the first portable music player in the globe. The company invented the portable music device, the Walkman, in 1979. The 1979 invention of the music device and lightweight headphones brought a significant change to the entertainment industry as people were able to listen freely to their favourite songs wherever they were.

This invention has made and continues to make the advertisements of Sony audio and video players much easier (Flugge 2008, p. 5). Sony also manufactures digital cameras; it was the first company to produce point and shoot models, which were both turning points in the field of photography. Sony digital cameras use the single-lens reflex technology, which makes it easy to point and shoot as well as to produce clear pictures (Daft 2010, p. 177).

Sony was among the first companies to invent televisions and computers that use video audio integrated operations (VAIO). This kind of technology allows TVs and computers to show images that are of high quality. Sony Corporation applies the technique in the production of most of its electronics, for example front projectors. The technology has also seen other rival companies recognise Sony’s products and try to enter into mutual agreements with it (Gaspar 2006, p. 188).

A SWOT Analysis of Sony Corporation

Strengths

Sony Corporation has a number of strongholds that assist it to prosper in the electronics’ business. Firstly, Sony owns quality music and pictures, which can help it to promote most of its electronic products to consumers. Secondly, the company has built a name through its consistent and good performance.

One of the 2011 studies, which ranked Sony as the most valued brand in Asia, has also assisted the company to prosper. Lastly, Sony has an efficient team that consists of innovative and technological experts who ensure that the company’s products are of high quality; this helps the company to stay ahead of its competitors (Chang 2011, p. 7).

Weaknesses

The main weakness of Sony is as a result of the company’s attempts to venture in a wide range of products; this compromises the aspect of specialisation within the company. The move to venture into several lines of business negatively affects the company’s brand as the consumers are unable to associate it with any of its many products. The high cost of doing business in the electronics’ industry is also another weakness that the company faces at the moment. The high costs in the industry affect how the company sets prices for its products (Henry 2008, p. 117).

Opportunities

Sony has a great opportunity to expand its businesses through the joint venture it has with Ericson. The joint venture gives Sony a chance to exploit the tablet market and the smart-phones’ business. The company also has a chance to expand its operations globally through its music and movie business. The company can easily use the music and movie business to develop and support its products (Hill & Jones 2013, p. 502).

Threats

The main threat that Sony faces is competition from companies that deal in similar electronic products. The main competitors of Sony are LG and Samsung, which offer their products at relatively lower prices. The online network hackers, who hack into Sony’s site and leak the customers’ information to unauthorised individuals, are also another threat to the company (Flugge 2008, p. 4).

PESTEL Analysis of Sony Corporation

Political Factors

Sony is an international company and its businesses in a particular country are affected by government policies. Such policies mainly determine how the government controls business in the country. For instance, Sony has not been doing well in countries such as Syria due to the poor government policies, which put unfavourable restrictions to international companies (Saleem 2010, p. 21).

Economic Factors

The factors that are considered as economic and which influence the business of Sony Corporation in most countries include economic growth, exchange rates, and variable tax policies. The company has done very well in countries such as Japan and USA where exchange and interest rates are favourable (Saleem 2010, p. 23).

Social Factors

Sony is also affected by the changes in social trends that occur in the countries where it operates. Such changes greatly influence the demand of Sony’s products; for instance, the company does well in the United Kingdom since the lifestyles of citizens in this country are greatly influenced by fashion and stylish preferences (Karami 2007, p. 174).

Technological Factors

Sony depends on technological advances to innovate its products; the company has been able to manufacture most of its products as a result of the technological know-how and innovative ability of its engineers. For instance, Sony was the first company to produce a portable music player owing to the advanced technology of its experts (Karami 2007, p. 174).

Environmental Factors

Weather and climatic conditions are also other factors that affect the operations of Sony in most countries. They affect activities such as tourism, insurance and farming, which in turn affect the demand for Sony’s products. For instance, Sony cameras have a high demand during winter in Syria as a result of the high number of tourists that visit the country (Bowhill 2008, p. 331).

Legal Factors

The operations of Sony are also influenced greatly by the laws in the countries it carries out its business activities. Every country sets its own legal restraints for which any company willing to do business in it must adhere to. For instance, in the UK, Sony must adhere to the age discrimination law that was passed recently (Havaldar 2005, p. 273).

Conclusion

Sony Corporation is an organisation that primarily deals in the manufacture of electronic appliances and is position two globally among the electronics manufacturing companies. The company has a team of experts, who are innovative and highly knowledgeable. The company’s prosperity mainly depends on the services of these experts. The operations of Sony are affected by environmental, social, political, and legal factors among others.

Recommendation

The management of Sony Corporation should consider specialising in only one line of products. The company should withdraw from producing the other products it deals in and stick to electronic appliances. This may enable the company to reap the full benefits of specialisation and labour division. This move may also make it easy for the company to achieve its main goal, which is to dominate the electronics’ manufacturing industry.

References

Bowhill, B 2008, Business planning and control: integrating accounting, strategy, and people, Wiley, Hoboken, NJ.

Chang, S 2011, Sony vs. Samsung: the inside story of the electronic giant’s battle for global supremacy, John Wiley & Sons, Hoboken, NJ.

Daft, R 2010, Organisation theory and design, South-Western Cengage Learning, Mason, OH.

Flugge, J 2008, Sony-a Japanese company going global standard 2002, GRIN Verlag, Norderstedt.

Gaspar, JE 2006, Introduction to business, Houghton Mifflin Company, New York, NY.

Havaldar, KK 2005, Industrial marketing: text and cases, Tata McGraw-Hill, New Delhi.

Henry, A 2008, Understanding strategic management, Oxford University Press, Oxford.

Hill, CWL & Jones, GR 2013, Strategic management theory, Cengage Learning, Mason, OH.

Karami, A 2007, Strategy formulation in entrepreneurial firms, Ashgate, Aldershot.

Saleem, S 2010, Business environment, Pearson, New Delhi.

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IvyPanda. (2019, April 9). Sony Corporation and Its SWOT and PESTLE Analyses. Retrieved from https://ivypanda.com/essays/sony-corporation-and-its-swot-and-pestle-analyses/

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"Sony Corporation and Its SWOT and PESTLE Analyses." IvyPanda, 9 Apr. 2019, ivypanda.com/essays/sony-corporation-and-its-swot-and-pestle-analyses/.

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IvyPanda. "Sony Corporation and Its SWOT and PESTLE Analyses." April 9, 2019. https://ivypanda.com/essays/sony-corporation-and-its-swot-and-pestle-analyses/.

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IvyPanda. 2019. "Sony Corporation and Its SWOT and PESTLE Analyses." April 9, 2019. https://ivypanda.com/essays/sony-corporation-and-its-swot-and-pestle-analyses/.

References

IvyPanda. (2019) 'Sony Corporation and Its SWOT and PESTLE Analyses'. 9 April.

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