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Strategic Analysis of Sony Corporation – Strategic Management

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Executive Summary

Globalization is one of the major factor which has helped business units in creating wide impact on organizational growth and development. It has enhanced both domestic and global competition within the market. Strategic management refers to continuous planning, monitoring and controlling of business activities in order to attain organizational goals and objectives. Present report has focused on creating an in-depth analysis of strategic management approach adopted by the business units in order to gain high measures of growth within the market. For the present study the business operations of Sony corporations has been analyzed and evaluated. Hence on the basis of the report it can be said that Sony has wide prospects of growth and development in the global market as the organization has developed effective means of strategic management measures.

Table of Contents

  • Introduction
  • Industry Analysis
    • Strategic Analysis Of Sony Corporation
  • Company Analysis
    • External Analysis
    • Competitive Analysis
    • Internal Analysis
    • Core Competencies
    • Value Chain Analysis
  • Conclusion
  • References

Illustration Index

  • Illustration 1: Strategic planning
  • Illustration 2: Porter 5 Force analysis
  • Illustration 3: Value chain analysis

Introduction

Globalization is one of the major factor which has helped business units in creating wide impact on organizational growth and development. It has enhanced both domestic and global competition within the market. The widespread technological advancements and innovative practices within the market have created an effective impact on major business operations (Kim, 2004). The widespread business operations and increasing market competitiveness demands effective management practices by the business units in order to gain the favorable results. Strategic management refers to continuous planning, monitoring and controlling of business activities in order to attain organizational goals and objectives (Pollard and Hotho, 2006). This helps in creating an effective impact on the strategic development of organization.

Present report will focus on creating an in-depth analysis of strategic management approach adopted by the business units in order to gain high measures of growth within the market. For the present study the business operations of Sony corporations will be analyzed and evaluated. Sony is well established global unit which is operating successfully in more than 40 countries of the world. The organization is a leading manufacturer of electronic and professional equipment for consumers. The report will critically analyze the strategic management approaches adopted by Sony and its impact on the profitability of business. Various use of models and tools will helps in developing a clear and in depth analysis of the given report.

Industry Analysis

Electronic industry is one of the most dynamic and volatile industry of the global economy. Regular innovation and development within the industry has posed wide measures of threats and opportunities to the industry.  Complex lifestyles and increasing standard of living has developed wide  range of demand for electronic products and services. Moreover, smart-phone is now the core need of every individual rather than luxury. Strategic development and growth measures helps in developing a clear vision for the growth of the industry in the competitive market. Sony Corporation is one of  the leading electronic organization of the economy. The organization is a leading manufacturer of electronic and professional products to attain organizational needs within the market.

Strategic Analysis of Sony Corporation

Strategic analysis is a well-structured approach adopted by the business units to analyze and evaluate business vision, mission, goals and objective of the business in order to create wide impact on business growth competitive measures in the industry. The strategic planning helps in defining management activities in order to plan the priorities and future of the organization for growth and prosperity of business. Various elements of strategic planning helps in developing effective development measures within the organization while involving both external and internal business environment.

Illustration 1: Strategic planning
(Source: Larsen, Tonge and Lewis, 2007)

Mission: This element of planning develops the purpose of business by defining their values and reason for existence. Sony Corporation aims at innovation in order to meet consumers’ needs and requirements to set new trends in technological market (Sony 2015).

Vision: This is the statement which defines the broad aim of the company. Sony’s vision is to create a exciting and new digital entertainment for the buyers by producing advanced and innovative products and services (Sony 2015).

Goals and objectives: These are the growth focused plans which are time bound to define the objectives for laying road-map for success of the organization. The objective of Sony s to develop its electronic segment and produce innovative and digital gadgets to provide high convenience to the buyers. While the goal of the company  is  to  enhance its market share in the global economy.

Company Analysis

Sony Corporation has developed a well established brand image within the market to enhance the sales and profitability of the company in the competitive world. The business analysis of the company helps in analyzing the strengths and weakness of the company to sustain growth and development within the market.

External Analysis

The external factors which impact the business growth of smart phone sector more prominently of Sony Corporation have significant impact on the growth of the industry. The industry has low control on these factors as they are macro factors which are beyond organizational control. To analyze the external analysis on smart phone sector, PESTEL framework has been implemented.

External Business Analysis
Factors Analysis
Political Smartphone sector at UK has high impact from the political   factors and it certainly makes a significant  impact  on  the business operations that runs in this sector. Government policies and framework regulates the industry highly as changing policies and regulation limits growth opportunities and enhances threats for the business (Allen and et.al., 2008).
Economic Factors such as inflation, growth rate, population rate etc. has wide impact on the industry. Increasing inflation in the economy cuts down the budget of people which has direct impact on the sales of smartphone market and hence the economic factors have a direct impact on the sales prospects of the organization.
Social Changing trends and demands within the market is one of the most crucial factors which develop the business prospects for the company. Social factors of the  country  helps  smartphone industry in analyzing the trends and demands within the market thus provide wide opportunities for growth (Carr and Hancock, 2006). Effective analysis of social factors helps this industry in gaining high growth prospectus.
Technological This is one of the most crucial requirements of the cited industry. Technological factors help the business unit of this sector in creating a wide and significant impact on products quality, innovation factors and creativity within the market. These factors help in developing the organizational performance in the competitive market. Sony has developed wide impact in the  market by developing innovative and advanced products.
Environmental The impact on environmental factors is vital on the growth and development of the unit. Companies in this sector have implemented various policies regarding environmental friendly policies and green production etc. This has helped the business like Sony in developing effective brand image within the market (Pollard and Hotho, 2006).
Legal The legal and regulatory framework has significant impact on the business operations of the company. It abides the organization to operate under legal framework to develop business operations within the market.

 

Competitive Analysis

The competitive analysis of Sony is as follows:

Illustration 2: Porter 5 Force analysis
(Source: Strategic management, 2014)

Bargaining power of suppliers: The raw materials and resources required by the company are not unique and limited. Thus supplier power is low for Sony as the company can easily switch to cost effective supplier as per the convenience of the business.

Bargaining power of buyers: Buyers power is significantly high in the market. Increasing trends for gadgets and high market competition has enhanced market competition thus the power of buyer has increased. However quality ad brand image of Sony creates wide impact on consumer choices. Hence buyers have moderate power.

Threats of new entrants: It is low as electronic manufacturing industry demand high degree of investment and brand image within the market (Rosen, 2006). Sony has developed a well developed platform for competition which has raised the bar for the industry thus threat for new entrant is low.

Threats of substitutes: Samsung, Apple and Google are the crucial competitors in the market. The consumer can easily switch from one seller to other to satisfy their needs and demands hence the threats of substitute are high in the market.

Industry rivalry: Large number of buyers and sellers exist within the market. This has increased industry rivalry within the  market  significantly thus it is high for Sony.

Internal Analysis

The internal factors of the business impact the growth f the business significantly as these are in the control of business units and effective market analysis helps business in effectively  evaluating  the  factors  which  may lead to organizational success.

Core Competencies

The core competency of Sony is in the electronic segment. This has helped the business to grow and develop within the competitive market. The core competencies of Sony are as follows:

Innovation: The innovative products and services help the business unit in creating an effective impact on the organizational growth and success. Sony has effectively indulged in the regular innovation to provide wide options for the buyers.

Technological advancements: This is the integral part of the  business success. Sony regularly develops the products to make them competitive and fit for the present competitive market in order to attain the needs and demands of the consumers (Raymond, and Bergeron, 2008).

Miniaturization: The world is going micro presently. Consumers demands convenient products in order to develop effective impact on demand. Sony has developed core competency in the field.

Value Chain Analysis


Illustration 3: Value chain analysis
(Source: Strategic Management Journal, 2014)

Value chain analysis is the most significant measures  of  internal  business analysis for the organization. The value chain analysis of Sony is as follows:

Value Chain Analysis
Primary activity
Inbound logistic The company has developed effective and advanced measure of inventory management. Using electronic services and tools has helped the organization in delivering clear results.
Operations The organizational operations are highly advanced and effective for the organization which has helped it I gaining wide success.
Outbound logistics Effective supply chain management has helped the business in developing effective system of logistics (Announcing the Start of a Logistics Joint Venture, 2015).
Marketing and sales The marketing and sales is strong and effective of  the  firm  which supports promotion and sale maximization
Services The consumer services and sales services have helped Sony in building high level of trust and loyalty within consumers.
Secondary Activity
Firm infrastructure The internal infrastructure of the organization is well developed in order to manage the vast business operation at global level.
HRM The organization recruits highly talented and skilled employees to enhance products and services of the organization (Richardson, 2008). Sony takes effective measures to train, develop and retain the employees.
Technology development The technological infrastructure of the company  is  well developed and organization which supports effective innovation and advancements of the products.
Procurement Sony has developed effective supplier relations to attain quality raw material at considerable rate.

 

Conclusion

Diverse business practices pose wide challenges for the development measures of the companies. Strategies are developed by businesses in order to create a winning edge in the market. The strategic management helps in enhancing growth and development of business to increase its profitability and market share. It helps management in developing long terms business objectives and developing strategies to attain the objectives to create competitive edge within the market (Rosen, 2006). The above report effectively helps in analyzing strategic management measures adopted by the company in order to create wide impact on the growth measures within the competitive market. The report significantly reflects the internal and external business operations of the company to evaluate its growth impact. Hence on the basis of the report it can be said that Sony has wide prospects of growth and development in the global market as the organization has developed effective means of strategic management measures.

References

Books and Journals

  • Allen, R. and et.al., 2008. Porter’s business strategies in Japan.
    Business Strategy Series. 9(1). pp.37–44.
  • Carr, A. N. and Hancock, P., 2006. Space and time in organizational change management. Journal of Organizational Change Management. 19(5). 545–557.
  • Kim, K. S., 2004. Strategic planning for value-based management: An empirical examination. Management Decision. 42(8). pp.938–948.
  • Larsen, P., Tonge, R., and Lewis, A., 2007. Strategic planning and design in the service sector. Management Decision. 45(2). 180–195.
  • Pollard, D. and Hotho, S., 2006. Crises, scenarios and the strategic management process. Management Decision. 44(6). pp.721 –736.
  • Raymond, , and Bergeron, F., 2008. Enabling the business strategy of SMEs through e-business capabilities: a strategic alignment perspective. Industrial Management & Data Systems. 108(5). pp.577- 595.
  • Richardson, , 2008. The business model: an integrative framework for strategy execution. Strategic Change. 17(5‐6). pp. 133-144.
  • Rosen, , 2006. Strategic Management: An Introduction, Pitman, UK.

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Essay, Bookmy. (August 2018). Strategic Analysis of Sony Corporation – Strategic Management. Retrieved from https://www.samples.bookmyessay.com/strategic-analysis-of-sony-corporation/

"Strategic Analysis of Sony Corporation – Strategic Management." Bookmyessay.com. 11 2018. All Answers Ltd. 09 2019 < https://www.samples.bookmyessay.com/strategic-analysis-of-sony-corporation/ >.

Essays, BookMy. (November 2018). Strategic Analysis of Sony Corporation – Strategic Management. Retrieved from https://www.samples.bookmyessay.com/strategic-analysis-of-sony-corporation/

Bookmyessay. November 2018. Strategic Analysis of Sony Corporation – Strategic Management. [online]. Available from: https://www.samples.bookmyessay.com/strategic-analysis-of-sony-corporation/ [ Accessed Friday 10th July 2020].

Essays, BookMy. (November 2018). Strategic Analysis of Sony Corporation – Strategic Management. Retrieved from https://www.samples.bookmyessay.com/strategic-analysis-of-sony-corporation/

Essays, Bookmy. (November 2018). Strategic Analysis of Sony Corporation – Strategic Management. Retrieved from https://www.samples.bookmyessay.com/strategic-analysis-of-sony-corporation/

All Answers ltd, 'Strategic Analysis of Sony Corporation – Strategic Management' (Bookmyessays.com, September 2019) https://www.samples.bookmyessay.com/strategic-analysis-of-sony-corporation/ accessed Friday 10th July 2020

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