• Subject Name : Management

Strategical Analysis of Sony Corporation

Table of Contents


Brief Overview of the Company.

Strategic Analysis.

PESTLE Analysis.

SWOT Analysis.

Future Strategies.




Introduction to Cooperative Strategies for Wireless-Powered Communications

This report aims to provide a strategical analysis of Sony Corporation, in which PESTLE analysis and SWOT analysis will be carried out. This report will provide the background of the company along with the future strategies that the corporation should accommodate in its operations. It will also provide recommendations to the CEO and company director for the long-term direction of the business.

Brief Overview of the Company

Sony is the global leader in the electronics industry with operations in over 140 countries. The firm is involved in designing, improving, manufacturing, and sales of electronic equipment and instruments, marketing of software and game consoles to final markets. The company also provides network and advertising business services through its subsidiaries. The company’s operations fall under six reportable segments (Alhashash, Alshammari and Al-Mnaies 2019). They include networked Products and Services; Music; Consumer Products and Devices; Pictures; Financial Services and others. It also operates its subsidiaries across 200 countries in Europe, North America as well as Asia. The Company's headquarters are in Tokyo, Japan. It was founded in 1946 by Masaru Ibuka and Akio Morita. Its major industry competitors include Dell, Creative technologies, LG, Samsung, Fujifilm Holdings, Philips, Pioneer Corporations, Hitachi, and Casio Computers (Alhashash, Alshammari and Al-Mnaies 2019).

Strategic Analysis

PESTLE Analysis

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 particular country. For instance, Sony is doing well in countries such as Syria due to the poor government policies, which put unfavorable restrictions to international companies (Oliinyk, Kozmenko, Wiebe and Kozmenko 2018).

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 the USA where exchange and interest rates are favorable (Hong 2018).

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.

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 (Oliinyk, Kozmenko, Wiebe and Kozmenko 2018).

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 (Chen, Zhai, Li and Vucetic 2018).

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 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 (Richeri 2016).

SWOT Analysis

Strengths: Sony Corporation has several strong holds 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. Sony is the most valued brand in Asia, having a large base of loyal customers. 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 (Hong 2018).

Weaknesses: The main weakness of Sony is as a result of the company's attempts to venture into a wide range of products; this compromises the aspect of specialization within the company (Chen, Zhai, Li and Vucetic 2018). 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 (Hong 2018).

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 (Alhashash, Alshammari and Al-Mnaies 2019).

Threats: The main threat that Sony faces is competition from companies that deal with 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 unauthorized individuals, are also another threat to the company (Oliinyk, Kozmenko, Wiebe and Kozmenko 2018).



Production capacity and adaptability

Stiff competition from strong brands on the market

Financial ratios

Price wars

Leadership in technology

Little diversification

Price leadership

Lack of a strategic communication plan

Excellent customer service



Wide market Coverage and global presence

Price wars

Maintenance of low price leadership

Changing needs of the consumer

Supply Chain

Presence of other strong brands (Samsung, LG)

Creativity and innovation

Product Imitation (Chinese Electronic industry)

Emerging markets

Future Strategies

Sony understands that addressing issues of interest to its many stakeholders is intrinsically linked to its ability to ensure a strong operating foundation, which is in turn vital to ensuring the well-being and sustainability of its business activities and to achieving sustainable growth. Sony's CSR initiatives reflect this understanding. Sony works to earn the trust of its stakeholders through its business activities, as well as through a range of CSR initiatives.

Market Penetration: The Company should expand its market to gain a competitive advantage over other company's customers, or attract new target audiences by the same product. In this respect, it is required to improve advertising campaigns and reconsideration of target buyers (Hong 2018).

Improving quality: The Company needs to focus on the concepts that involve the practice of constantly improving performance in business, simply by targeting the end-users, while at the same time, trying to address the expectations of the stakeholders. In other words, this approach would ensure that both the company and the customers benefit equally in the long-term. To implement this concept, it is important to include end users. Customers are of great importance to businesses, and nothing should be allowed to come between organizations and their consumers. The idea of gaining and retaining customers involves a lot of benefits, as well as costs (Hong and Wang 2017).

Improving customer satisfaction and approaching techniques: This refers to the way an organization or institution would treat the consumer. High-performance institutions normally tend to have good and effective strategies for obtaining, treating, and retaining their customers in all terms. These organizations also apply all the necessary processes and facilities, to support and withhold the approach of their consumers (Oliinyk, Kozmenko, Wiebe and Kozmenko 2018). To do this it is important to understand the consumer’s expectations by observed the current market trends and trying to meet them accordingly, in a manner that ensures that both external and internal customers are fully satisfied (Richeri 2016).

Product development: Product development implies the investigation of existing markets for introducing a new product. The current market has lots of new products that are way better than Sony products. It is important to innovate the existing product to gain a competitive advantage and for the growth of the company (Hong and Wang 2017). To generate a new idea, the company needs to consider the factors which include market trends, competitive environment, and corporate strategies.

Recommendation on Cooperative Strategies for Wireless-Powered Communications

The management of Sony Corporation should consider specializing in only one line of products. The company should withdraw from producing the other products it deals with and sticks to electronic appliances. This may enable the company to reap the full benefits of specialization and labor division. This move may also make it easy for the company to achieve its main goal, which is to dominate the electronics' manufacturing industry (Hong and Wang 2017).

Conclusion on Cooperative Strategies for Wireless-Powered Communications 

It can be concluded that the report has carried out an internal and external strategical analysis of Sony Corporation in which it was found that the organization 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. Sony has been able to nurture its ability to gain a competitive advantage in the market. Although weaknesses and threats are inevitably present, their effects have remained detrimental due to capitalization on opportunities and strengths inherent within the firm. Some of the significant factors greatly responsible for this milestone include robust and sustainable technology, price leadership, and innovation.

References for Cooperative Strategies for Wireless-Powered Communications

Alhashash, F., Alshammari, T. and Al-Mnaies, A. 2019. Sony Corporation. Journal of the community development in Asia2(2).

Chen, H., Zhai, C., Li, Y. and Vucetic, B. 2018. Cooperative strategies for wireless-powered communications: An overview. IEEE Wireless Communications25(4), pp.112-119.

Foss, N.J. and Saebi, T. 2018. Business models and business model innovation: Between wicked and paradigmatic problems. Long Range Planning51(1), pp.9-21.

Hong, S. 2018. Financial Situation Assessment of the Sony Corporation. Available at: http://dspace5.vsb.cz/bitstream/handle/10084/127484/HON0091_EKF_B6202_6202R010_2018.pdf?sequence=1&isAllowed=y

Hong, Y.U. and Wang, J.Y.,2017. Analysis and Suggestion on the Development of SONY. DEStech Transactions on Economics, Business and Management, (icem). Available at: http://www.dpi-proceedings.com/index.php/dtem/article/view/13136

Oliinyk, V., Kozmenko, O., Wiebe, I. and Kozmenko, S. 2018. Optimal control over the process of innovative product diffusion: the case of Sony corporation. Economics & Sociology11(3), pp.265-285.

Richeri, G. 2016. Global film market, regional problems. Global Media and China1(4), pp.312-330.

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