The two terms Sonus and sonny make the word Sony. Sonus and sonny both are Latin words. The word Sonus means sound and sonic and sonny means little son. You can easily pronounce the name Sony and also easily read the language. There is a live ring to the world Sony and fits easily with the spirit of freedom and open-mindedness. As the two words, Sonus and Sonny make the word Sony which depicts a small group of young people who are energetic and passionate about limitless creations and creative ideas. Sony Foundation started to run in 1946 while Masaru Ibuka and Akio Morita worked jointly with a small group of obsessive and committed workers to create Tokyo Tsushin Kenkyujo” (Totsuko), or “Tokyo Telecommunications Research Institute” (billion-dollar global conglomerate). The company officially took the name Sony Corporation in 1958. The primary aim of the company is to design and make creative products that would be useful for people.
SWOT Analysis of Sony
Strengths
- Strong brand image
The company Sony Corporation has built itself as one of the most powerful companies in the market over the years.
- Quality of the products
The company has to provide the best quality products. Otherwise, the image of the company would suffer a lot.
- After-sales service
Sony gives outstanding after-sales service which is indeed one of the biggest strengths of the company.
- Business diversification
When we hear the bane of Sony the first thing that peeps into our mind is electronics like PlayStation mobile phones, TVs, and many more. We may also get financial services from Sony. The company is also the owner of Sony Pictures Studios. With the help of diversification the market risks of Sony decrease and it makes the company stable.
Weaknesses
- Mobile Devices
The position of Somy in the mobile industry is one of the biggest weaknesses of the company. The performance of the mobile devices of Sony is comparatively lower than the other market leaders.
- Promotional Activities
The company rarely engages itself in promotional strategies in comparison with its opponents.
- The High Cost of Production
It consumes a lot of money to produce the products of Sony, especially the TVs. As a result, the prices of the products are relatively high. That is why the opponents have a competitive edge for which the company is losing its market share.
Opportunities
- Home Entertainment Devices Market
Sony delivers the best products in the industry. That is why if it can maintain its high position in the market it will be able to gain more revenue over the upcoming five years.
- Creative New Approaches
Now technology is continuously changing day by day. That is why it is very important to have new creative products as it will help the company to improve its revenue and the company will get a competitive edge from it.
- Acquiring Ericsson’s Share of the Sony
The joint venture with Ericsson enables Sony to perform like a self-reliant mobile manufacturer and find creative ways to enhance its status in the smartphone and tablet industries while at the same time enjoying the total profit of the product.
Threats
- Strong Competition
Sony has to continuously compete with the best brands like LG, Samsung, and Xbox. That is why it is very important to introduce new creative strategies and advertising activities.
- Prices
The pricing strategy of Sony is relatively higher than the other ones. That is why there is a chance that maximum buyers would like to choose reasonable products for a lot of reasons.
- Cyber-attacks
Recently, Sony has improved its dependency on networks and online databases which is why there is a great concern for cyber-attacks.
With the help of the SWOT analysis of Sony we can know that despite being a market leader in different parts of the consumer electronics market, the company has not been able to beat the primary market like the mobile market till now. That is why the company has to explore a lot of markets now.
What Are the Major Problems and Challenges Faced by Sony Corporation?
Sony is a multinational company that has to handle the dynamic industry. The company has developed with the help of a constant work atmosphere where the engineers are praised for unique technological ideas and have worked without any restrictions because they were willing to concentrate on the growth of robust technologies and the production of products that people always desire.
Some Corporation, once one of the leading companies all over the world, has plunged into a loss for nearly four successive years. The company encountered a high loss of 520 billion yen in March 2012. The basic problems of the company are a few product lines of Sony Corporation. When the company applied empire building strategy the innovation and operations of the company became slow. The company started to become weak in every market part of its business. Apart from the internal issues, there were also external issues for the company. The worldwide financial crisis in the late 2000s led the customers to decrease their spending which reduced the profitability of Sony. The all-around demand for Sony products decreased because of the preference for the Japanese Yen as it negatively affected the buying power of non-Japanese customers of the products of Sony. Then the operations of Sony were utterly affected by the Great East Japan Earthquake disaster and its results and the company had to spend a lot of money to rebuild itself. Because of the external unruly challenges the company was not able to cope with the growing competition and it faced a lot of difficulties to maintain its market share in the electronics and game industry. Furthermore, the top administration team of Sony was relatively conservative. That is why the company lost its competitive advantage in the industry because it reduced its technological creation. In brief, the rebuilding of Sony’s strategies in that challenging circumstances caused them to face huge losses.
Conclusion
Sony has undergone a lot of issues for many years. It has now been able to detect the original problems properly. Though the company has improved to some extent recently, it still has to concentrate on a lot of areas. Sony is not considered the market leader now. As a result, it does not have the old power by which it can influence the path of the market and abide by its strategy. The strategies they have taken are no doubt good and can revive Sony Corporation but still, the company has to put in a lot of effort if it is willing to survive in the market and get back its position as a market leader again. To make a detailed and informative case study you should contact My Assignment Writing Help.
FREQUENTLY ASKED QUESTIONS
- Why did Sony become so successful?
To sustain success innovation is very important. Sony encountered severe competition from other renowned brands along with foreign strategies. But it managed to become successful only because of its innovation power.
- What is the weakness of Sony?
One of the most important weaknesses of Sony is the lack of robust mobile devices. The smartphones and tablets of the company did not perform well in the market in comparison with other international consumer electronics brands like Samsung and Apple.
- Why did Sony fail to innovate?
The company was not willing or able to cope with the realities of the worldwide market. The biggest mistake of the company is that it failed to handle the biggest technological innovation waves recently, that is initialization, a transition towards software, and the significance of the internet.
