Introduction
A product’s life cycle is the series of stages that a product goes through from its inception in the market to eventual decline. These stages are introduction, growth, maturity, and decline, and each stage is associated with distinct market characteristics. This paper analyzes the life cycle of Sony’s digital television, and assesses the product’s financing sources both inside and outside its home country.
Sony Television
Sony Corporation was founded in 1946 and is headquartered in Tokyo, Japan. The company manufactures a wide range of products, including cameras, data storage equipment, computers, computer hardware and software, medical equipment, and home entertainment units. Among these, Sony televisions have reached their maturity. The televisions have been enhanced to have unique features that differentiate them from those of competitors like LG and Samsung. Over time, Sony televisions have been crafted to include Internet TVs, HD Family TVs, LED TVs and 3D TVs. The company has adjusted the prices, distribution patterns and promotion strategies to maintain its share in the market against the competitors (Sony, 2012).
Public and Private Financing of Sony in Japan
Sony Corporation acquires finances from both public and private sources. Private sources include sales and operating revenue and investment in the company by corporate investors as well as individuals. Public sources include bank loans by both the home country banks and international banks located in the country (Turnovsky, Mutti, & Eicher, 2009). The major source of money is the operation and sales revenue. If this revenue is not enough the individual companies using the Sony brand name yet situated in Japan, the companies may borrow from the Sony Bank, one of the affiliate companies.
These financial sources promote the global market of the Sony TV by ensuring that the head quarter from which most consultations take place is running. In this case, money is sought from the international banks which are located in Japan the Sony brand name is promoted (DePamphilis, 2007). The Sony bank, for example, promotes the name to the people it serves both locals and the tourists expanding its global market. The shares sales promote the brand name to both the individual shareholders and the corporate shareholders, such as the parent company, located within Japan through advertising. Other corporate share holders include Japan Trustee Services Bank, Ltd, Moxley and Company, and The Master Trust Bank of Japan.
Optimal Source of Financing
Sony television production is optimally funded through the sales and operating revenue of the Sony Corporation, a private source of revenue (Sony, 2012). The money that is generated through sales is invested in the purchases and operations leading to the production of the product. This financing source may not be appropriate because the quantity of products and the time taken to produce are dependent on the market response of the products. If a product is not doing well in the market its production will be delayed, and improvement on the product to increase its sales will be affected.
Bilateral and Multilateral Financing of Sony Television
Sony television as a product is funded by both bilateral and multilateral financial sources. Bilateral banks are established and operated to serve two countries with common interests (Rix, 1980). Sony Financial Holdings as a bilateral finance source operates in Japan and is open to other countries using the Sony brand name. The multi lateral financial sources include the banks that are funded and operated by many nations with a common interest (Kōzō, 2002). One of the multilateral financiers of Sony is JICA. Sony Financial Holdings promotes the company brand, for it deals with companies outside Japan. Multilateral financial sources promote global investment because they have other branches in other countries.
Optimal Source of Funding
The optimal source of financial funding is the Sony Financial Holdings which funds the companies under it by giving loans under the stipulated conditions (Kōzō, 2002). The performance of the individual groups belonging to this group is monitored by the group and recommendations made where appropriate and necessary. A need for financial assistance and no alarm for poor performance qualify the company to Sony bank for funding. This source of funding is appropriate since adequate auditing is carried out prior to any funding thus ensuring the effectiveness in the operations of the various companies.
Extending the Sony TV’s Life Cycle
Sony as a brand name is spread through out the world with branches and offices in every continent. Sony Television’s market can be extended by targeting the already well performing markets. This will maximize sales and operation revenue used in the product’s production. Such markets include Europe and America where the Sony products have been well received. In order to expand its market the company will need to diversify the products, increase distribution range, manage prices and increase promotion activities (Sony, 2012).
Conclusion
Sony is a brand engages in diversified production of goods and services. Television sets as one of the products that the company offers has reached a maturity stage and thus needs strategies that will ensure it maintains its market position, or better yet improve the market position. Key financers of this product include private sourcing in the home company and bilateral sourcing too. In order to improve the performance of the product, the marketing strategies need to be diversified to attract more customers. Diversification will deal with competition and customer satisfaction leading to better sales. This will not only improve the products performance in the home country but also globally.
References
- DePamphilis, D. M. (2007). Mergers, acquisitions, and other restructuring activities. Waltham, Massachusetts: Academic Press.
- Kōzō, K. (2002). The web of power: Japanese and German development cooperation policy. New York, NY: Lexington Books.
- Rix, A. (1980). Japan’s economic aid: policy-making and politics. New York, NY: Taylor & Francis.
- Sony. (2012). TVs from Sony. Web.
- Turnovsky, M. H., Mutti, J. H., & Eicher, T. S. (2009). International Economics. New York, NY: Taylor & Francis.