Essays on Advice to the Chief Executive Officer of the Sony Corporation Case Study

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The paper "Advice to the Chief Executive Officer of the Sony Corporation " is a perfect example of a business case study.   The Sony Corporation is a large, multinational business that offers consumers many different electronics products that are distributed domestically and internationally. The company’ s product portfolio includes the production of cameras, gaming consoles, televisions and even consumer smartphones. Unfortunately, Sony sustained a loss of 67 billion yen in 2012 (Hirai 2012), which was a significant loss unprecedented in the electronics industry. This loss was on the heels of a 2011 loss of 199.8 billion yen, indicating a substantial problem with keeping up with competition and satisfying diverse consumer markets.

2. Porter’ s Five Forces AnalysisJohnson, Scholes and Whittington (2008) describe the work of Michael Porter who asserted that businesses maintain five forces that can either enhance or conflict business development and growth. These include the threat of substitute products, new market entrants, the intensity of competitive rivalry, buyer power in the market and supplier power. For Sony Corporation, the most paramount risk to the business is a competitive rivalry. Samsung, the company’ s most potent competitor, is an expert at promotional strategy, using lifestyle (psychographics) marketing that appeals to consumer attitudes, values and beliefs.

Samsung has been able to position many of its consumer electronics products that provide consumer segments with positive perceptions that the brand can enhance their lifestyles. Marketing literature identifies that when consumers believe a brand provides opportunities for self-expansion and self-improvement, it creates very strong connections and loyalties to the brand (Zhang and Chan 2009). To further add problems toward competitive advantage recovery, when the company manages to innovate, competitors in the industry are rapid to replicate those innovations which significantly shortens the life cycle of the Sony product which causes a business need to reallocate financial resources in an effort to develop new product innovations.

Unfortunately, there are also many substitute products available that conflict with Sony being able to sustain a high market share.

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