Growing World of Sony

It’s not news that Sony is a global company or that (25%) of all Play Station profits’ for the past seven years came from Sony to Japan. After all that’s what international marketing and the global economy are all about, companies like Sega, Nintendo, Microsoft, X-Box doing business around the world. The global economy now reaches every corner of the United States. Current interest in international marketing can be explained by changing competitive structures coupled with shifts in demand characteristics in markets throughout the world. With the increasing globalization of markets, companies find they are unavoidably enmeshed with foreign customers, competitors and suppliers. A significant portion of all products made in the United States is foreign made.

Japan’s economy is based on a strong work ethic and being a leader of technology, in which has helped Japan advance to the second most powerful economy in the world. One notable characteristic of the economy is the working together of manufacturers, suppliers, and distributors in closely-knit groups called keiretsu. The keiretsu, which means “order” or “system,” is a unique form of business that links companies together in industrial groups that provide Japanese business with a substantial competitive edge over non-keiretsu organizations. Keiretsus are collections of dozens of major companies spanning several industries and held together by cross-shareholding, old-boy networks, interlocking directorates, long-term business relationships, and social and historical links. There are six major Japanese industrial keiretsu groups and eleven lesser ones. Together, the sales in these groups are responsible for about 25 percent of the activities of all Japan, and keiretsus account for 78 percent of the value of all shares on the Tokyo Stock Exchange.

Japan’s industry, which is the most important sector of the economy, is heavily dependent on imported raw materials and fuels. For three decades overall real economic growth had been one of the highest, 10% in the 1960s, 5% in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in 1992-95 largely because of the aftereffects of over investment during the late 1980s. Growth picked up to 3.9% in 1996, largely a reflection of low rates of inflation. But in 1997-98 Japan experienced a recession, centered about financial difficulties in the banking system ...

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...the magic and popularity behind playstaion 2, besides the Sony name, was is it’s ability to play back DVD videodiscs, and support for all types of sound hardware, including Dolby Digital and DTS, which is, used for home theater systems. These added options plus it’s ability to play back the original playstation games made it appealing to every one regardless of age. For the Kids you had the hottest new system that could also play the original play station games even faster, for the parents you had a new DVD Player.

Sony’s ability to market and tailor the playstation to a wide range of consumer young and old is what but it on top of the charts. Even with the introduction of Microsoft’s XBOX and Nintendo’s game Cube this October Sony is still topping the charts this Christmas season. Sony’s has proved it’s self in the gaming world and has its consumers behind them. The strategies that Sony uses is marketing it’s playstation is not complex, Sony just uses it’s assets to find out what the consumer wants and need and then gives it them. Sony produces high quality products tailored to the need of its consumers. A simple concept that has left Sony and Playstation on top of the charts.