Precious Raspado
MGT 200
Angela Ydel
SONY COMPANY: An Evolution of Technology
A. Summary
Electronic Industry is very noticeable by showing great growth
and constant change. In this industry, it needs to maintain their
strategy to survive. This is because of the changes, including the
nature and high expectations of the customers. Without this, it will
lead them behind serving their customers and competitors. Sony
Corporation is one of them; this industry was made importance in
technology and produced effective strategies to meet goals of their
business. Sonys unique electric components spread worldwide and
definitely poised for success.
Sony started May of 1946 when Totsuko was established in
Nihonbashi Tokyo. They began with a capital of 190,000 yen used
for researches, manufactures and equipments. During 1950s,
when world witnessed the invention of magnetic tape and tape
recorder; at the same time it also marked the decision of the
company to change its name to Sony Corporation. In 1960s, the
invention of the first ever portable and chromatron color television,
and the establishment of Sony Corporation in U.S. Throughout the
next period, they experienced growth in 1973 as they awarded as
the first Emmy Award that was ever given to a Japanese Company.
Sony saw their expansion during the 80s with the first ever CD,
Handyman camcorder and the achievement of Colombia Pictures
Entertainment which was renamed by their company in 1991. As
Sony entered computer industry for technological innovations;
people
witnessed
technology
with
advancement
the
creation
and
development
of
Sony
in
phone
Ericson
Mobile
Communications and video high capacity disc, Blu-ray. All of
these achievements, technology is literally their everything. And
that is why it continued to make an impact on the electronics
industry.
Sony has been successfully planned for its future growth and
survived because of their effective business strategies. But it is also
important to be aware of their competitors. Like Samsung, they had
been both outsourcing televisions on their own. But Sony always
believed that they like to concentrate on their Sony-unique
applications. Sony is very flexible and open to other options to its
strategy formulation in order to achieve their goals, that is why
they used different methods and one of them is the formation of
strategic
partnerships
This
approach
was
realized
in
the
association of Sony and Google with regard to cellular phone
market. By working together, they were able to benefit and help the
partnership that could have been difficult to achieve independently.
Sonys success lies in its reliance on quality personnel. Their main
strategy regarding human resources is to stay competitive because
of
the
fast
moving
technological
developments
and
high
expectations of people. They address these through Employee
Management Communication. The goal is to create worldwide
meetings to help them explain directly to the employees and seek
their understanding and as well as to gain feedback and sharing of
information for them to be united as a whole. The problem with this
is that employees does not allow to voice out their concerns, so
Sony implemented an Employee Opinion Survey for them to be
deployed and be comfortable.
Evidently, Sony is very been persistent when it comes to effective
strategies for them to be successful. However, this doesnt mean
that they are not aware of the changes and opportunities within the
marketplace. With this, Sony is still investing it resources and
searching development in order for them to maintain a competitive
edge. They are not only looking for existing products but also new
creations as well.
This strategy focus on the retail side of its
distribution where customers select cheaper priced television
instead of purchasing expensive ones. This tactic developed
another
campaign
meant
to
incorporate
entertainment
and
electronics business.
As for the Sonys future, even though they are strongly
competitive there is no doubt that there will be some threats and
challenging times to the company as the technology develops. That
is why Stringer said that We must increase our speed market with
desirable and competitively priced products and services."
B. Case Study Questions
1. From a scale of 1 to 5 where 1 is the best and 5 is the worst,
how would you rate Sonys ability to create and deploy their
strategies? Justify your rating with details and examples.
We would rate Sonys ability 1 or best because the technologies they
made and strategies they have as a company. Being in the electronics
company is a tough competition. Consumers are very demanding and
have high expectations. First is in their technology where they made
many firsts. They made the magnetic tape and the first tape recorder
in 1950s. During the 60s, they made the first portable television,
Chromatron color television. In 1980s, they made the worlds first ever
Compact disc player, compact design of the Handycam camcorder. In
the 90s, they created Sony Ericsson Mobile Communications and in the
early twenty-first century, they introduced the high-capacity optical
disc Blu-ray. With this technologies made first and fast, they really
made technological innovations possible. Second is with their
strategies where it is solid and well-structured. They have a keen
knowledge of their strengths and weaknesses. They are aware of their
competitors like when Sony and Samsung has different views to
outsourcing and building televisions on their own. They also have s
strategic partnerships which allow them to capitalize on its own and
other firms strengths to achieve synergy through a joint venture. This
was seen when Sony and Google have an alliance for cellular phone
market which benefits both of them being partners. They also have a
strong value of their human resources by having an EmployeeManagement communication to maintain a professional working
relationship with its employees. They also invests its resources in to
search and development in order to maintain a competitive edge in the
marketplace. They also keep the competition with is competitors in
order to persuade their consumers to choose its product over others.
They also developed the make believe campaign to integrate its
entertainment and electronics business under one campaign. With
these ability to create and deploy strategies, they are deserving to
have a rate of 1.
2. How does the industry in which Sony competes dictate the
type of strategy it must implement in order to be
successful? Why do you think so?
Being in the electronics industry must have an intense growth and
innovates products rapidly. In order to survive, a company must have
an established and have a good strategy. We have three things to
consider in order being successful in the electronics industry-speed,
taking risks, and being on trend. First, we consider speed in this
industry nowadays. Because of the high expectations of consumers
and emerging competitors. Companies must not stick with their
existing products and must achieve outsourcing which allow them to
jump into new markets. Also, they must innovate their products,
develop low costs products, must have a clear communication from the
management to the employees and develop new strategies. Second,
we consider taking risks because it results to many opportunities. One
example is when Sony started with a small capital and to be used for
research and eventual manufacture of telecommunication and
measuring equipment that resulted to one of the largest electronics
company in the world. Lastly, the company should be on trend. With
the different technologies today and higher expectations of the
consumers, being on trend is to consider. It lets the companies be on
the industry because it can give us profits and let us know if the
business is doing well. With these things to consider, companies in the
industry are poised for their success.
3a. How might Sony plan for the future in the electronics
industry? What opportunities and threats do you see coming in
Sonys Future?
Sony looks not only to their existing products but also to new and other
markets where it can advance on its position. According to Howard
Stringer, chairman and CEO of Sony Corporation, the company must
hold true to its roots and purpose as a company. Being a brand which
stands for quality and creativity with their products, their integrity and
ethical business practices, they have a strong foundation for the
success of the company in the future. Their opportunities are having
diverse and competitive prices in their products, strong brand
initiative, more submarkets, international market penetration and new
line of products. Their threats are emerging competitors, recession,
sales drop, and hackers.
3b. How do you suggest Sony may prepare for youre above
mentioned opportunities and threats?
They should be vigilant to their competitors because of the fast
competition nowadays especially on the electronics business. They
should also have target plans for the future, so they can focus on what
to do and how they can do it better. They should also need to have
product differentiation, so they can have a unique product that is
different from other companies.
4a. Research about Sonys competitors and determine the
advantages and disadvantages they possess compared to
Sony.
COMPANYADVANTAGES
DISADVANTAGES
Samsung Has a diverse line of products
Disappointing outcome
of products
Strength in telecommunication
Does not have a
businesses
unique product
Has nice design features and
technology
strongest patent portfolios
among the technology
companies
LG
Pioneer in home appliances
Provides similar
products with other
Wide range of products
companies
Investments in new and different
areas
Apple, Inc. Marketing and advertising
capabilities
Stronger demand for companys
products.
Strong brand image
Robust financial performance
Microsoft Brand reputation
Successful in gaming products
Easy to use software
Lack of expert
operators
Higher prices
Not user friendly
Patent infringement
Poor acquisitions and
investments
Dependence on
hardware
manufacturers
Mature PC Markets
[Link]
[Link]
[Link]
4b. How might Sonys competitors deal with these
disadvantages in order to be more competitive with Sony?
They can deal with these disadvantages by having a strong brand
reputation in the market, having an economical and user friendly
products, maintain their strong financial performance, must have at
least 2 strong product sales. They should also need to have a strong
advertising campaign, develop outsourcing, and be vigilant to their
competitors and have a strong brand patent. With these things Sonys
competitors like Samsung, LG, Apple, Microsoft and the like can be
competitive with Sony Corporation
