Corporate Strategy Sony Corporation

Corporate Strategy Sony Corporation

Sony is a multinational corporation comprising of other corporations engaged in different businesses that fall under one corporate structure. According to Cooper and Glazer (2010) it involves a parent company and subsidiaries, the parent company in this case was started in Konan, Minato, Tokyo, Japan, it’s considered to the largest media conglomerate with revenues estimated to be more than $ 267.1 in 2011 fiscal year. The company’s business corporation include Sony corporations (electronics), Sony financial services, Sony pictures (movies& music) and Sony computer entertainment. Sony also produces communication items and video games for it customers and professional market (Byars 1991). This report is written on Corporate Strategy Sony Corporation.

Vision

To create exciting new digital entertainment experiences for consumers by bringing together cutting-edge products with latest generation content and services.

Mission

To develop a wide range of innovative products and multimedia services that challenge the way consumer’s access and enjoy digital entertainment. The level of saturation within the electronics industry is placing huge difficulties and pressures on Sony in achieving long term competitive advantage. However, The Sony Corporation appears to be striving, achieving record growth to the point where analysts have said it could become the world’s largest electronics industry with time. The purpose of this paper is to understand what origins have driven the success of the Sony organisation. Incorporated within this document: first the paper delves into a brief history of Sony Corporation and then into the description and application of strategic analytical tools. Finally it will provide conclusion to the findings.

Background to Sony Corporation

Sony Company was started by two electrical engineers geniuses Masaru Ibuka and Akio Morita in Japan the year 1946.they were concerned with what the company was to make and how it would be made (McCurry 2008). Their advice was used in production of transistors which they pioneered in its invention. Sony research and development is different from those of other companies with its great flexibility in its essence. Sony is still a Japanese company traditionally. Employment is lifetime with strategy creating values being observed strongly through employee actions. Instead of fringe benefits and bonuses for superior achievements, employees are given status through awards (crystal award). There is also the strong seniority system such as the mentor and apprentice relationship that’s typical of Japanese firm. Strategy formation is considered a collective behaviour.

Competitive Advantage

Competitive advantage is a description of how an organization is able to achieve success over her competitors. This strategy aims at giving customers quality services unlike the ones offered by the competitors that enable the given organization to earn a high average return in terms of profits (Byars 1991).  The competitive strategy should be in line with the organization’s goals and a true reflection of the market where the given organization is situated. It is defined as “delivering superior value to customers and in doing so earning an above average return for the company and its stakeholders”. Potters (1998) states ‘Competitive advantage is achieved whenever you do something better than the competition’ (Capron & Glazer 1987).  Porter goes on to suggest in his work that competitive advantage “grows out of the value a firm is able to create for its buyers that exceeds the firms cost of creating it”. (Kotler 1998). Competitive advantage should support organisational strategy and reflect key market capabilities

Internal analysis

This is the internal organization of the business and how it operates including the factors that affect its smooth operation (Kotler & Schlesinger 1991). Sony being the world largest electronic manufacture since 1946 it engages in research and development for it to maintain its leading position in the market. Sony global (2010) states that the electronic business sector is currently Sony’s cash cow representing 65% of the total revenues. In this segment, two products are vital: TVs (25% of the electronics revenues) and digital and video cameras (21% of the revenue). According to Data monitor, the global consumer electronics market grew by 4% in 2008 to reach a value of $267.2 billion. In 2013, the global consumer electronics market is forecast to have a value of $306.1 billion; therefore research on this area will be pivotal in market share command. This business sector employs world class marketing tactics and skills thus making Sony an international mega brand. At this stage to answer what make the electronics sector such a successful world class business unit in the selected market of China we will look at:

Accounting ratio analysis

Accounting ration analysis is the ratio that is mostly used to evaluate the relationships that exist among the financial statement items. These ratios are used to come up with the trends within a given period of time for a given company and to compare the performance of two or more companies. With theses ratios one would be able to know the success of an organization. Financial statement analysis looks into the liquidity of a business, the profitability, and its solvency (Capron & Glazer 1987).

Corporate Strategy Sony
Corporate Strategy Sony

In the year 2011 Sony electronics operating profit margin accounting ratio in China market was 0.018 (0.045 in the year 2010), return to shareholder equity was 0.006 (0.007 in 2010) while total asset return was 0.002(0.002 in 2010).the high investment rate does not correspond to the business sectors profitability. These poor results show that aspects of the electronic sector had not been managed well in China thus making it hard to achieve average even returns.

Financial resources

Financial resources are concerned with the operations of an organization that make it realize the profits and its strategic goals (Johnson & Scholes 1993). Sony electronic net sales in China for 2011were $21 billion (3% higher than in 2010).however $0.49 billion earned in 2011 as operating income represents a 40% decrease compared to 2010.this is an indication that Sony electronics in China has been eroded significantly.

Organization design and structure

Organizational structure is a form of management in an organization that aims at bringing together the people in the given organization, information and technology. This integration is aimed at making the organization achieve its goals. Through the designing process, most organizations are able to work towards the profitability of the organization. Nevertheless, the design process is an internal change with the facilitation of an external person (Johnson & Scholes 1993).  The management and the employees need to work together to understand the organization’s needs and creating systems to meet those needs in the most effective manner.

With immense and increasing growth in China, Sony electronics employed the Strategic Business Unit way of the multi-division structure to institutionalize and implement its diversification structure. The electronic sector is divided into four SBU (cameras & camcorders, TV, Stereos &radios and VCR & DVD) which are further divided into smaller functional units known as divisions. This functional division are sub related yet different in commonality. This SBU financial and strategic controlled are exercised at the headquarters of Sony electronics in China.

Physical resources

Physical resources are skills such as in the buildings, technology, and other skills that enable the organization’s work to be simple (Cooper 2000). Sony electronics despite its infrastructure in china it still continues to invest heavily in the same infrastructure so as to meet its ever growing customer needs and demand in china. Like in 2009 Sony electronics acquired Chinese based companies Xing Electricals and Guangzhou Electricals Appliances Company in 2010.by 2011 Sony electronics owned 14 manufacturing plants in china, this was after seeing the closure of 3 in the northern part of the country.

Technological resources

Technological resources are the resources that use technology that is applied by an organization to ensure that the delivery of its services is effective and make it gain a competitive advantage. Sony electronic was first in areas such as camcorders, Trinitron, walkman and robot dog in china. The company is advanced technologically than its competitors in china e.g. its DVD offer high performance with new features like record and play making possible complex effects such as viewing oneself while seeing on TV from the DVD in 3 D form. Sony TV also has new features. Above this Sony electronics is capable of leveraging its competitor’s ability well and ahead to create high quality electrical appliances for china’s customer base and it market at large.

Human resource management

Human resource management is the function within the organization that is concerned with the recruitment, management and giving the directions for the employees. It moreover deals with issues such as compensation of employees, hiring, performance management, organizational development administration and training. All these functions relate to the smooth functioning of the organization in service delivery and hence need to be managed in the most efficient manner (Kolter & Schlesinger 1991).

Sony electrical china website stresses that the development and vitality of Sony employees in china drives dynamic growth for Sony electrical. At the moment Sony electrical offers training to it employees for them to be superior in quality production of electrical appliances. Curriculums tailored to local Chinese managers are being provided by Sony electrical in the china region. Sony electronics in china has the ability to identify high calibre managers to take managerial posts for the company sector in china to continue being well managed and innovative culture proliferated business sector.

For these Sony electronics employees in china are recognized and awarded for their outstanding and good performance. This makes Sony electronics human resource management in the china market capable of motivating it employees thus improving productivity of its staff.

Reputation resources

Reputation of resources is one of the strategies in an organization. Public relations are important in the ever changing world and that the way the organization engages with the public is important. This can be through the use of social media that is finding its way into the market.  Reputation resource management makes it possible that the information about an organization is accessible by the public in the most efficient manner such as the use of media and online resources (Johnson & Scholes 1993).

Sony electronics china has the reputation as the best managed company in the region. In 2011 it was proclaimed as china’s largest consumer electronic company a significant media industry player and the fast growing TV maker in china. In short Sony electrical china is one of china’s most recognizable and trusted brands.

Risk management

Risk management is an important tool in the planning of most business organizations. This process reduces the occurrence of certain kinds of events that might affect the organization. This process involves identifying, assessing and giving more priorities to a variety of risks. Once the risks are known, then the risk manager has to minimize its occurrence.  Depending on the type of risk identified, there are a variety of strategies to be applied. Risk standards can be developed by an organization or the organization can use the International Organization for Standardization (ISO).

The risk here includes pure risk and price risk.fpr pure risk, for Sony electronics to be successful in the China market then it must be able to take into consideration the various measures of risk management and standards. They need to purchase insurance policies to mitigate them. Price risk will be mitigated by the use of foreign exchange forward contracts and currency swap agreements.

Summary

The internal analysis of the Sony organization has been important in establishing the internal problems within the organization and trying to solve them with an intention of the smooth running of the organization.

Value Chain Analysis

Customer Value Chain Analysis is concerned with the customers and the stakeholders, taking into view their value “propositions” and their relationship to the development of the automobile industry products. Research shows that the definition of a product is vital to providing quality products for the customers. Understanding the various stakeholders involved in the product chain too is vital in the successful production of a product (McCurry 2008).

Together they form value chain analysis. Cost and assets are attached to each activity in the value chain. The cost behaviour depends on a number of causal factors known as cost drivers.

Inbound logistics

In this case Sony electronics in the china market will engage third parties in the production of complex in bound logistics. Sony electronics engaged Ziang a china company in the production of its products components so that Sony electronics will continue being a leading and challenging player in the china market. Sony electronics will have to transfer its production to china to make use of the available cheap labour cost thus making managing complex and regionally spread inbound logistics activities of Sony electrical strengths.

Operations

Sony electronics business will range in china will range to different provinces in Chinese market. Sony electronics production spreads from Europe, Asia and ameerica.teh details can be summarized as: 1) Total annual production for 2011 in electronics, 30% was sold in the Chinese market, 2) Asia excluding china and Japan was responsible for 20% of total annual production, and 3) U.S, Africa and Europe accounted for the rest. Sony electrical though will face and still faces  duplication off products thus making it unable to address inter-operative linked issues which is a cause of alarm which create the company’s sector weakness.

Outbound logistics

Sony electronics in the china market will have to be well connected to the channels of distribution that every country has. Outbound logistics will have to be automated to track movements of finished electronics and the payments made for such electrical products in the Chinese markets. A prominent magazine in china reported that in the year 2011 Sony electronics were rated among the best in china and worldwide as well, and that their staffs are well equipped with the knowledge to any operation. The ability to train employees and outsource outbound logistics is Sony’s Electronics strengths.

Marketing and Sales

Sony electronics strategy for the china market is to make itself a leading provider of electronics in the region and brand itself as a manufacturer of high quality electronics which enables it to sell it products at a higher premium than its competitors. Massive marketing is done and will continue being done for these electrical products which has helped to create several successful sub brands in electronic products such as Trinitron and WEGA. This success strengthens the Sony brand. Due to sensitivity to its competitors actions and reactions the company has no qualms of incurring unwanted expenses, so by doing this  it solidifies the company’s reputation and image. Sony electronics market shrewdness took the first spot on china according to Yao Xing (2011). Due to this Sony electronics marketing is a strength that’s hard to copy and of great value.

Services

Sony electronics sector will have to establish service related activity in the Chinese market that will promote customer satisfaction which will make the customers feel that the product has met the expected required customer qualities. The support activities for Sony electrical in china will be as:

Human Resource Management

This will involve how the company will recruit, train, develop and compensate all personnel (Kotler 1998). At the moment Sony electrical offers training to it employees for them to be superior in quality production of electrical appliances. Curriculums tailored to local Chinese managers are being provided by Sony electrical in the china region. Sony electronics in china has the ability to identify high calibre managers to take managerial posts for the company sector in china to continue being well managed and innovative culture proliferated business sector.  For this Sony electronics employees in china are recognized and awarded for their outstanding and good performance. This makes Sony electronics human resource management in the china market capable of motivating it employees thus improving productivity of its staff.

Technological development

This will include how the company which is Sony in this case in engaged in process design ,products design and how it research and development in carried out to production of better products for the consumers. The company is advanced technologically than its competitors in china e.g. its DVD offer high performance with new features like record and play making possible complex effects such as viewing oneself while seeing on TV from the DVD in 3 D form. Sony TV also has new features. Above this Sony electronics is capable of leveraging its competitor’s ability well and ahead to create high quality electrical appliances for china’s customer base and it market at large.

Procurement

Sony electrical should be keen on how purchase its raw materials that’s it should be having a strong and working procurement system for this to happen. Their suppliers should be acting and supplying the required supplies in time. Highest quality goods should be obtained here in low prices for materials necessary for the company’s operations.

Firm infrastructure

This includes planning and control systems, such as finance, accounting, and corporate strategy etc. (Lynch, 2003). Sony electronics despite its infrastructure in china it still continues to invest heavily in the same infrastructure so as to meet its ever growing customer needs and demand in china. Like in 2009 Sony electronics acquired Chinese based companies Xing Electricals and Guangzhou Electricals Appliances Company in 2010.by 2011 Sony electronics owned 14 manufacturing plants in china, this was after seeing the closure of 3 in the northern part of the country.

To understand Sony electronics activities in china through which competitive advantage is created while observing and maximizing shareholder value, series of value generating activities known as value chain will divide the business system. Transforming input into output looked to have problems and required immediate response from Sony electronics to fix it. If not fixed and solve urgently they might affect the effectiveness and efficiency of operations of the primary activities of sonny electronics business sector downwardly. Though electronics has witnessed a significant increase in internal cooperation between hardware and software managers more work and effort need to be put. The nature of good and fine networking sought to become the habit of Sony electronics sector for it to enjoy a commanding competitive advantage in the Chinese market.

Summary of Sony’s Electrical Sector strength and weaknesses

Strengths Weaknesses
  • Able to motivate and improve employees productivity
  • Positive Sony reputation contributes to increase in sales and revenues
  • World class marketing tool which makes Sony’s mega brands
  • Innovation ability which mesmerizes customers to buy them.
  • Ability to leverage on technology well ahead of competitors
  • High debt ratio put the company in danger in case debtors demand their money.
  • Weakness of divisional structure that include duplication of activities leading to high cost
  • Competing business unit engage in office politic instead strategy formulation and implementation

Resource competency use on Sony’s Electronic models primary and support activities

Functional Activity Capabilities Bundle of Resources Available
Inbound logistics Able to conduct complex inbound logistics for smooth organization operations Technology, human, financial, innovation and infrastructure
operations Capable to innovate and build mesmerising products to customers Technology, human, financial, innovation and infrastructure
Outbound operation Capable of training employees to perform vast complex outbound logistics activities Technology, human, financial, innovation and infrastructure
Marketing and sales World class marketing tools for making Sony mega brands human, financial, innovation
services Able to integrate various resources and functional activities to meet customer need in china Technology, human, financial, innovation and infrastructure
Finance and infrastructure Possess various physical resources to help create competitive advantage human, financial, innovation and infrastructure
Human resource Provision of numerous packages and training that help motivate employees human, financial
technology Able to leverage on technology well and ahead of it competitors Technology, human, financial, innovation and physical
procurement Possess procurement know how that leads to high quality at low costs Technology, human, financial, innovation

Environmental PESTEL Analysis

Environmental analysis is the study of the company’s competitiveness and the whole

Environment where it operates, this will have an impact on the decisions the organization makes in regard to the strategies the organization is to employ in order to achieve profits. (Kotler 1998). PESTEL is one tool used to identify primary factors for consideration in the general environment. When applying a PESTEL analysis it should be recognised that the categories are not ‘mutually exclusive’ (Byars 1991). This section will analyze the companies PESTEL and it consists of political, economic, social cultural, environmental and legal forces impacting Sony electronics in the Chinese market.

Political Factors

Political influence has been particularly evident in recent times. Extreme security measures have been established since rise of the terrorist threat. Government of china policies obviously are of value in running the country successful. Since Sony electronic headquarters in Minato Japan, the corporations policy differ with those in Chinese market. Here marketing strategies and decision activities are restrained and controlled by various laws and regulations established by political institutions in the People’s Republic of China. China will enact laws to preserve a competitive atmosphere or it consumers who in this case are the china people. The extent of the impacts on these laws on the marketing mix variable will depend on Sony electronics sector will interpret such provision that they might be subjected to heavy regulations.

Some political changes in china might make Sony electrical activities difficult and they may encounter political risks during their operations e.g. times of war, political unrest, terrorist activities. The concerns of Sony electronics strategist in this scenario is to understand china’s political system or policies, the government of china’s commitment to the rule of the game ,expectation of change in government and the expected change in business practices.

Economic Factors

The economic status of any country plays a vital role to the success of the industries located in that country. These factors affect the consumers’ decision on the purchase of the products because the economy of a country includes exchange rates, inflation and the income of the individuals. Globalization led to emergence o international production markets. It also led to access of foreign goods and services; due to this the demand for products went high. Strategists at Sony electronics sector should be able to understand the economic variables present in the china market. The economic forces can affect the market either positively or negatively.

Sony electronics sector should be aware of china’s inflation rates which in 2011 was at 1.0003%.the knowledge of this would lead to strategies to counter this economic menace. Sony Electronics should know china’s level of economic condition, is it boom, recovery, recession or depression. The availability of natural resources that can be used by Sony corporation in china to aide it operations in the country. Sony corporation should also know of china business atmosphere is it friendly or otherwise.

Sony corporation should understands china’s purchasing power of the market as this will dictate the levels of income, prices, savings, debts and credit availability. By understanding china’s industrial structure of the economy Sony corporations will determine the level and distribution of income and this will in turn impact on the business organization performance. Some of the important factors to be considered by Sony electrical corporation in the Chinese market are: 1) Economic stage of china, 2) Economic structure adopted by china which in this case is Socialism, 3) Economic policies by china e.g. industrial, monitoring and physical. Nevertheless, Chinas national indices like; National income, distribution of income, rate and growth of GNP, per capita income, disposable income rate, rate of savings, and balance of payment. Infrastructural factors in china like communication, transportation and insurance facilities.

Social Cultural Factors

The socio-cultural factors include demand and the tastes of the consumers. These factors on the other hand vary depending on the fashion, the disposable income, and the general changes that provide the opportunities and threats for given companies. In several cases, products for a given industry have to change depending on the market situation and here prices and the strategies involved in promotion have to change. The society in which people live shapes up their beliefs, values and norms. People of china will absorb a world view that defines their relationship to themselves, others, to nature and to the universe at large. Sony corporation electronics sector should be aware of china’s people core beliefs and values that tend to persist. The knowledge of this factor will ease the penetration of Sony electronics into china’s market.

Technological Environment

Technology is vital on strategic management of any company (Camp 2007). Technology creates a strategic advantage. However, other external factors such as the government support and encouragement affect the use of technology by an organization. This involves the rate and level of change which affects the people of china lifestyle. Technology is seen in electronics through camcorders, computing mobile phones.

This will influence how Sony electronics will produce its products, advertise them, personal selling, market research and pricing. The technological advancement of china will lead to how Sony electronic will invent new electrical products and new methods of production for the Chinese market in China.

The total output of Sony electronics in china market can increase through increased productivity, reduced cost and new type of products.

Sony should be aware that other Chinese companies are able to copy its technologies in a shorter period of time and sell them at throw away prices. Due to this the technological margin is diminishing and Sony corporations through it electronics sector should be cognisant with that.

Effect of Technology

This can be evidenced in the types of products made and sold by Sony electronics. Therefore technology will lead to home working in China, service manufacturing in China and database marketing through the website in China.

Legal Factors

Sony corporation electronic sector should analyze China’s intellectual property and property right which they are capable of applying for their electronics as well commercialization. This will offer Sony in the china market a significant source of comparative merit of enterprise. The PESTEL analysis has proven to be important for the market analysis for the Sony Corporation. It has assisted in identifying vital external factors that affect the operation of the organization and its expansion.

Porter’s Five Forces Model

Porter (1998) suggests that Five forces will look at; threat of substitute products, bargaining power of suppliers, bargaining power of buyers, threat of new entrants and the intensity of rivalry in the Chinese market. From porter five forces model the competition in the electronics industry is fierce thus any company making an entry into the industry in the china market will experience difficulties in profit making. This does not imply that the company will get the same profitability result it got in the previous fiscal period; if Sony applies its business competencies well in china it will still get profits above the industry level.

Porters Five Force Model
Porters Five Force Model

Threat of substitute goods

For the china market the threat of substitute goods is high since substitutes from other industries are a lot and most of them seem to be current and innovative. Although the threat is high Sony corporations through its electronics sector has established and positioned itself by building good reputation and customer loyalty in the Chinese market. This positions Sony electronics effectively against any product from substitutes in the china market.

9.2 Bargaining power of buyer

The buyers bargaining power in china is high since they can swiftly change from one product to another. The access of interest in china has led to consumers finding information on prices charged by various manufacturers thus making the change form one from one manufacturer to another who offers cheaper prices for the same goods as those offered by Sony electrical. Bargaining power in the Chinese market has also increased due to online shopping.

Bargaining power of suppliers

Supplier bargaining power in china is lower due to the fact that a large number of suppliers and customers exist. Sony electronics operate in global chains thus making its supplies less concentrated and above all they are small in size thus commanding a weak supplier bargaining power in china. Due to its direct negotiations with its suppliers they normally cheaper prices though reliable.

Threat of new entrants

The threat of new entrants in the china market is too low due to the fact that they will incur high costs, economies of scale, product differentiation as well as high technology and innovation knowledge. This market in china is regulated by requiring every new entrant to have approval from the relevant authorities being eligible to operate.

Competitive Rivalries

Competitive rivalry in china as a market is high due to intense competition and high exit cost. This rivalry characterized by numerous and equally balanced competition in china due to high research and development, fixed and storage costs, intensity of competition in this market is further heightened by slow growth in the industry.

Summary

Porter’s five analyses has been used by Sony Corporation to gain a clear understanding of the market and enable the organization build a competitive advantage over her rivals in the industry.

Competitive strategies

Competition represent a major determinant of corporate success and if Sony  corporation through its electronic sector fails to take detailed consideration of competitors strength and weaknesses in the Chinese market may lead to poor performance and greater exposure to competitive disadvantage which may lead to make Sony a follower instead of a leader in that market. Cooper and Glazer ( 2006, P.10-21). In this case Sony Corporation should:

Identify its competitors in the Chinese market.

Who they are and how many. This will enable Sony to understand competitors’ moves and monitor them easily and appropriately prepare a marketing defence. The danger though is from emerging competitors and their numbers. In china Sony electronic competitors include; Philips, Toshiba, sharp, Samsung, LG, Kodak & Fuji, Matsushita.

What are the competitors’ goals and objective?

This involves determining the competitors’ goal and objectives. Sony should try to answer what each competitor is seeking in the Chinese market and what drives the competitors aim in the market. Sony should also know how a competitor weighs each objective as this can help them know how they are likely to react to different types of attack.

What are the competitors’ strategies?

 Sony should try to identify competitors’ strategy amongst those competitors within the same market with the same strategy.

What are the competitors’ strength and weaknesses?

Sony electronics sector in the Chinese market should try t identify competitors strength and weaknesses by gathering information on each competitive business. The information will help Sony Corporation on who to attack and how to attack.

What’s the competitors’ reaction and response towards competition?

 Sony predicts this about its Chinese competitors from the competitors’ philosophy of doing business. Sony here will need a deep understanding of the competitors’ mind set so as to anticipate their likely reactions. Strategies that can be adopted by Sony electrical in the Chinese market are;

Cost leadership

 Sony can try to control the Chinese market by being the low cost producer. For this strategy the product is typically undifferentiated. In case of discounts in this stage they shouldn’t be too high so as to offset cost advantages.

Differentiation

In this strategy Sony Corporation will offer products regarded as unique in areas which are high valued by customers. The product uniqueness will protect Sony from competition. However the price premium received should not outweigh the cost of providing differentiated product for this strategy to be successful.

Focus

Sony can use this strategy whereby it either uses cost or differentiation but rather than serving the entire Chinese market it decides to operate in particular attractive segments of that same market.

Recommendations

For Sony electronics to continue enjoying the leader position in the Chinese market it should reduce the cost of its products to increase profit margins. They should also create project based work teams that report to top management, this will reduce office politics and encourage strategic thinking. The employees in the sector should improve interaction and communication, by this team spirit will be high. Sony should incorporate customer oriented features; this will make customers feel they they’re part of the company thus increase customer loyalty. Sony should maintain it leader position in the Chinese market as this will make it outshine it competitors in the market. They should also encourage dreams as this will inspire employees to strive and achieve their dreams thus leading to innovations. Above all Sony should work with the people’s republic of china government.

Conclusion

The Chinese market is a harbour with many business potentials, if Sony Corporation through it electronic sector focus on it seriously it will reap hugely. This is so since Sony is considered as a market leader in the region with strong financial resources, obsession with innovation culture visionary leadership and the pioneer advantage. It should continue marketing it products to stay in touch with its Chinese customer (McCurry 2008). Clearly, despite the increased competition in this industry, Sony Corporation has succeeded in becoming one of the world’s most successful operators. It has recorded highest levels of growth. In contradiction to Porters belief that an industry’s structural characteristics determine the attractiveness and profitability of a market or industry Sony Corporation has excelled. Clearly, the factors that have contributed to the success of this organization come for three distinct areas: financial backing and investment into rapid growth and capital, holistic corporate dedication to its vision of quality and customer service, and vast Branding coverage of noteworthy promotional medium.

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