In the external strategic analysis of Sony, the key opportunities and threats are discussed. Sony, after initial delays launched the PlayStation 3 in 2006 and till 2012 sold about 70 million units of the latest version of PlayStation. SWOT analysis is a vital strategic planning tool that can be used by Sony managers to do a situational analysis of the company . This website uses cookies to improve your experience while you navigate through the website. (Photo: Public Domain) Sony Corporation is a major firm in the electronics, gaming, entertainment, and financial services markets. Let's stay in touch :), Your email address will not be published. Even if the product is of superior quality and meets all the operations of the customer, each product would necessarily require an after-sale service as well. The brand is so famous at the global level, and almost many people are well-aware of this brand and the various products that the company produces. In the internal strategic analysis of Sony, the key strengths and weaknesses are discussed.Â. The after-sale service is an excellent one and has its service centers worldwide. Strategic solutions are necessary to address the external factors that create such strong influences on Sony’s business. 9 SWOT The Sony Mobile Company’s SWOT analysis illustrates that the company’ strengths greatly outweigh its weakness. Sony being a popular multinational company, it sees more opportunity globally. Economic factors: SONY products aren’t a necessity. Expensive Products: Sony makes high-quality products, and there’s no doubt about that. It also has M2M (Machine-t0-Machine), which helps this company to enjoy cost-effective service solutions. Its phones are not considered as dynamic and user friendly as its competitor’s phones. Even though during the recession time in 2008, when the whole world was struggling, including big companies, Sony managed to collect $88.7 billion profit on those years. As it is an electronic product, it is indeed necessary to have after-sales for all its products. Sony is engaged in the musical sector as well. Over the past few years, Sony has developed many products, but they are indeed in response to the development by the other players. There are many budget brands like Xiaomi and Huawei, where many quality products are being sold at a low price. All these have made the competition more fierce and the growth of Sony into a vulnerable position. Disney’s Strengths – Internal Factor. The SWOT Analysis of Sony Corporation will explore the strengths and weaknesses of, and the opportunities and threats for Sony. If it can beat the low-cost competitors while avoiding FX disasters, it has new markets to conquer across the world and in new product lines. Sony has evident internal strengths, and the remainder of businesses in its industry takes notice as well. The electronic sector generates about Sony’s two-thirds of the overall revenues. It ensures that it goes through a quality check so that the customers are satisfied with their demands. It would see more opportunity on expanding itself to other countries where it did not start its operations yet. Apart from these products, it also provides various services like insurance, financial, banking, credit finance, network services, and advertising agency. 12/03/11 Having produced many products with excellent quality and being recognized at the global level, Sony has emerged to develop a sharp brand image in the electronic domain. Reliability – Disney has strong ties with its suppliers who provide high-quality raw materials for the company’s production line. Sony’s after-sale products are excellent and meet customer expectations. This company is the pioneer to introduce people with Blue Ray, Walkman, Home Theater and obviously PlayStation 3, which made a blockbuster hype among people and made history. The SWOT of SONY will help to comprehend the position of SONY … You also have the option to opt-out of these cookies. It currently competes with Microsoft Xbox 360 and Nintendo’s Wii. Necessary cookies are absolutely essential for the website to function properly. Each of the products that the company produces maintains its quality. Sony has a wide range of products in its portfolio. This brand is considered as one of the most recognized brands among consumers. The company sees a threat from its competitors, fluctuating rates in foreign currency, less frequency in innovation, and from software piracy. This imbalance is causing people to avoid Sony’s products and buy from others. This is a big threat for the brand as Sony should keep watching out for the foreign currency rate fluctuations. Sony was the first company to produce the first portable music player in the globe. Less Frequency of Innovative Product Release. Due to this, the company does not increase its global profit. But other products of the same genre can be found at much lower prices. Sony is no longer a market leader in most of the categories it competes in because of the competition it has to face. Sony Swot Analysis 1577 Words | 7 Pages. First of all, Sony has valuable physical assets, a clear market advantage, priceless organizational assets, good intangible assets, and low production costs in … The external factors impacting the business environment of Sony are evaluated in this Five Forces analysis of the company. This paper discusses the major achievements of Sony Corporation and presents SWOT and PESTLE analyses of the company. With a strong interest in developing and improving Business Strategy and to Conduct Business Analysis, he started The Strategy Watch in 2013 (Previously known as GotAbout Business Idea, Strategy, & Analysis). These cookies do not store any personal information. A SWOT analysis of Sony Corporation shows capabilities to improve business performance in the electronics, gaming, entertainment, and financial services markets. Diverse Products: Sony has a broad range of electronic products as well as services. SWOT Analysis of Sony Like most of the major conglomerates, Sony Corporation serves two types of customers (B2B and B2C). From the specialized business models that this brand is using for these regions, Sony expects to double its revenues from this market. The company cut its total losses by more than half in the second half of 2002. So, a person who had purchased a Sony product from one country can request an after-sale from another country. Swot Analysis for Sony 1893 Words | 8 Pages. This SWOT analysis examines the strengths, weaknesses, opportunities and threats for the consumer electronics segment of Sony. And by this, Sony will be able to give fierce competition to others as well as enjoy higher profit margins. We are now going to carry out SWOT analysis of PlayStation 3 vis a vis Singapore. We'll assume you're ok with this, but you can opt-out if you wish. The internal and external strategic analysis of Sony Corporation will be elaborated in the next section. 4. Strengths represent the ability of this company that’s more power and unique than others. Sony is a corporate brand whose identity is deeply rooted and very well established in the minds of potential customers. Since the company operates in a variety of segments in the global market, the area of analysis is broader than usual. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Sony SWOT Analysis. Surprisingly, this brand with high technology couldn’t make any flagship smartphones. This category only includes cookies that ensures basic functionalities and security features of the website. Would you like a lesson on SWOT analysis? Samsung, Microsoft and LG also aren’t sitting idly. Games, movies, music everything is getting released on the internet freely and affecting the company’s sales and revenues. Having spent so much on the new sales channel, Sony has seen more sales. And there’s no way to forget the hype of Sony Ericsson mobile phones in the past. Company Introduction: Sony Corporation is one of the widely recognized and used electronics brands which are named as Sony. This is a big threat to the brand as measures must be implemented to avoid this for the business. SWOT ANALYSIS SWOT is the apparatus to see that where association stands, which ranges obliged change , which regions obliged genuine thought , which would be the wellspring of development, which things need evasion etc. The company’s products are built with the latest technology, and this is indeed a great strength to the brand. Most people’s income in many countries has increased and provides a chance for these people to enter the market. Sony has not moved into this yet. The company was established during the year 1946, and its diversified business includes various products like consumer electronics, video games, semiconductors, films, music, TV shows, telecommunication equipment, and computer hardware. I… Sony Corporation or Soni Kabushiki Gaisha (Globally Known as Sony) is a Japanese multinational conglomerate. Just like any other business, the corporation has had its downs and ups within the global market. The company invented the portable music device, the Walkman, in 1979. Now it’s time to discuss the SWOT analysis of the company to have more awareness about factors that affect the business decisions of Sony. So, customers tend to switch to a cheaper brand, and due to this sometimes, Sony loses many customers. It delivers a detailed strategic analysis of the company's business, examining its … In the current era, where mobile certainly stands out above all other accessories and with the growing demand for it, Sony tends to have a weak presence in the smartphone industry. But Sony is relatively slow on this race. But the high manufacturing costs makes its product’s price much higher in the market. As the company is mainly focused on electronics, it has amazed people with its constant innovations and high-quality hardware and gifted with some advanced technological products. It is a handy technique to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Sony is facing in its current business environment. Strengths. The company is identical to technology excellence and has a luxurious custom of technology expertise. A SWOT analysis is a framework that is used to analyze a company’s competitive positioning in its business environment. This is because they analysed the company’s competition, its competitive advantage, internal and external environment. According to Gartner, in Q1 of 2020, Samsung has maintained the No. SONY corporation isn’t just an electronics company. Weak Presence in the Mobile Industry: Although Sony has proved itself in advanced electronic technologies and produced masterpieces like PlayStation 3, it’s lagging in the smartphone industry, which is nowadays the most prominent source for revenue in the electronic sector. For any brand to succeed, promotion is essential. Sony is also a victim of it. Here are the weaknesses in the Sony SWOT Analysis: 1. To tackle the pressure companies are continually launching new products to keep the attention. Strengths 1. Many low-cost competitors have drained away Sony’s market share, and this could be a significant concern soon. We also use third-party cookies that help us analyze and understand how you use this website. Major Achievements of Sony Corporation. The extensive network of piracy, hacking and black-market activities has put the companies in danger. This analysis also points to major threats and opportunities that supporting the company achieve the succeed in the technology industries by applying the corporate strategy. Competitions in Electronics Industry: Sony’s primary competitors, Such as Samsung, Microsoft, Apple, LG, are extending their product lines and gaining huge reach all over the world. Oscillating Tool Tips and Tricks: How Can You Use an Oscillating Tools Efficiently? India stands at 3rd position of television market in the world with US$ 7.9 billion in revenue and 168 million television households representing a huge customer base. 2. Major Products of Sony Corporation: The offering products of Sony are television, digital images, audio & video, electronic components, and professional solutions. That’s why we can now hope that Sony Corporation will get over from its failure of developing flagships phones and turn itself as a tough competition with other companies such as Apple, Samsung, LG, etc. Strength Electronics - Sony is a well-recognized and respected brand with consumers, and its products cover a wide spectrum of the entertainment and industrial markets Threats Electronics - new entrants are threatening sony’s position due to the industry shift from analog to digital technology. The brand remains healthy despite dropping from 25th to 29 in name recognition according to InterBrands 2009 ranking. While imitation would decrease the revenue of Sony, hence, the company needs to create solutions to save its software products. The SWOT analysis of Sony indicates the strengths of the company with which it is good at and what distinguishes it from its competitors, its weakness that prevents the brand from performing well and where its focus should be to improve its brand value. Although it’s mainly operated from the origin country Japan, it has its activities spread over 204 countries. Background SONY Corporation Founded: May 7, 1946 Founders Akio Morita Head quarter: Tokyo, Japan The name ‘SONY’ is based on the Latin word sonus, which means ‘sound’. 3. Entering into Mobile Sector with New Venture: It is already pointed out that Sony is not good at making smartphones, but this sector is the most flourished one nowadays. Sony sees a massive opportunity in many other markets where it is not set up yet, including more products, more sales being a multinational company, and having more customers from the online channels. Sony is a famous multinational conglomerate company that is headquartered in Minato, Tokyo. I love writing about the latest in marketing & advertising. Sony offers its two types of customers. Sony SWOT. Many other popular electronic brands in the market have expanded to other markets like home appliances. June 25, 2020 By Hitesh Bhasin Tagged With: SWOT articles. Strong Position in Developing Countries: Sony is always focused on entering new markets, especially developing countries which are a big market for electronic products. It’s perfectly placed in a growing industry, but has to battle with the growing numbers of low-cost electronics manufacturers. 2. The announcement of Apple making television has added another level of danger for Sony. As we’ve seen in the SWOT analysis of Sony, Sony has a powerful brand thanks to its history of creating new, unique, and high-quality products. It has a history of delayed launch, and recently there was another delay announced by this brand for PlayStation 5. Sony SWOT Analysis 1. Also, the supply of new products does not happen consistently, thereby leading to rise and dip in the sales over a period. Best Way to Sharpen a Chainsaw Step by Step. The Sony Company over the years has been a multination corporation known for its prowess in its professional device solutions as well as consumer products and services (Du Gay, P. et al., 2013). It produces mobile phones like Xperia, but these are nowhere near to the other product’s range of Sony. The brand includes various products like consumer electronics, video games, semiconductors, films, TV shows, music, computer hardware, and telecommunication equipment. Second largest entertainment industry in world in terms of number of film produced and cinema tickets sold. Let's take a brief look at the results for Sony. Apart from these products, it also provides various services like insurance, financial, banking, credit finance, network services, and advertising agency. Sony is perceived to be great brand but also expensive in many of its markets. In the coming years, the company can make use of this opportunity to know its customer better and serve the customer’s requirements using big data analytics. Delays are Product Launch: There’s high competition in the electronic industry. Sony Corporation - Strategy and SWOT Report offers a comprehensive analysis of the corporate growth activities of the organization in order to sustain its competitive advantage. Here is a SWOT analysis of Sony Corporation (NYSE: SNE), which once was the undisputed leader in the consumer electronics space. Sheikh Faizul Haque is an internet entrepreneur and the founder of The Strategy Watch; Graduated from North South University with a double major in Accounting & Finance in Bangladesh. Though new competitions have entered the market, Sony can still claim the top position with new and demanding technologies and features. Some of the company’s revenue is derived from its music businesses that include the Epic record labels and Columbia, and the rest from its television business and motion picture. Even though Sony has many diversified products and brands, but still it is not that diversified products like its competitors. Those tools gave the greatest insight into the company’s strategy. There’s no doubt about the capability for innovation of this brand. What Are The Pros And Cons Of Starting A Freezone Company In UAE? Dominates the Smartphone Market – Samsung has dominated the smartphone market for years. This brand also entered into the entertainment industry through Sony Pictures Studios, which has made and still making worldwide popular blockbuster movies. For the fiscal year ended March 31, 2018, cost of sales increased 435.2 billion yen year-on-year to 5,188.3 billion yen. They decided to make the company of the repairing the electronic equipment’s at very beginning the company had no machinery and had little scientific equipment’s “ In 1955, the company decided to use the SONY logo on Totsuko products and three years later changed its name to Sony Corporation”. Sony Ericsson should look to continue to cut costs in order to narrow company losses even further. Over the past years, Sony has invested in a considerable amount on the online platform. One must recall that SWOT analyses must be customer focused to gain maximum benefit, strength is really meaningful only when it is useful in satisfying the needs of a customer because the strength becomes a capability (Marketing Strategy, 1998). Many people across the world cannot afford to purchase Sony’s products are they are on the higher side. Strengths: Strong Brand Image: Throughout years Sony Corporation has made a name for itself as one of the strongest brands in the market. Sony PlayStation 4 is a video game console that has been created by Sony Interactive Entertainment. Substantial Brand Identity. It even had enjoyed a market monopoly with its products for some time. SWOT ANALYSIS-STRENGTH 1. High Potential in the Gaming Industry: The gaming industry is growing day by day. Natural Unemployment Definition – Components, Factors and Reduction Methods, Top 25 Search Questions on Google in 2020, Top 10 Instagram Accounts with the most followers in 2020. They are also faster in developing new games. The weaknesses of Sony focuses on the flaws or inadequacy that are behind the slowness of this brand. It also throws light on the threat that has the potential to harm the brand. The results for Sony that the customers are satisfied with their demands wanted my to... Dip in the internal and external strategic analysis of Sony like most of the overall revenues this,. 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