Sony Strategic Analysis

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Strategic Analysis of Sony Corporation Sony Corporation, which is based in Japan, was founded in May 1946 and is one of the massive multinational companies in the world. It is a leading manufacturer of electronics, games and entertainment products and has over 900 subsidiaries worldwide (Sony Annual Report, 2012). It has achieved huge success in the past, especially in the early 80’s and into the 90’s because its high-quality, sophisticated products used to catch the attention of consumers (Vossoughi, 2012). In the present world, Sony found itself struggling to rise and reach that level again after facing intense competition from its competitors as well as pressure from other internal and external factors. Figure 1: Layers of Business Environment Framework Layers of the business environment framework in Figure 1 is used to conduct the strategic analysis of the company. PESTEL framework is used to analyse the most outer layer of the environment, which is the macro-environment, which identifies how future issues in the political, economic, social, technological, environmental and legal environment might affect organisations. These issues can act as key drivers for change, which are referred to as ‘the environmental factors that are likely to have a high impact on the success or failure of strategy’ (Johnson, Whittington and Scholes, 2011). Based on the information available from the case study, it is found that the changes in organisational culture might affect the company in terms of social. Meanwhile, new discoveries and developments of technology, which in the case study is the shift from analog to digital technology, might give an impact to the business in terms of technological aspect. Taking a look at economic perspective... ... middle of paper ... ...on of production’ (Navaretti, Castellani and Disdier, 2006). In conclusion, Sony should not just wait for bad situations to happen and only then start to think of the ways to solve them, but rather the company should make detailed, innovative plans that can lead to fruitful and profitable future outcomes. This is supported by Johnson (1992), who says that ‘the notion of strategy is to do with the long-term direction of the organisation and not just response to difficulties’. All of the challenges and threats that have arisen should be tackled quickly and in the most efficient manner possible by the company in order to be the fast-growing leader in the industry again. To summarise, by initially analysing the overall strategic analysis of the company, the company can form several strategic options based on the strengths, opportunities, threats and weaknesses present.

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