The paper 'Global Production Network of Sony PS4" is a perfect example of a marketing case study. In the globalised economy, Global Production Networks (GPN) has played an important role in economic development. This is seen from sourcing of the inputs, imports of intermediate products, and the global sourcing behaviour. Production has become internationally linked with multinationals using offshore production sites in low-cost countries and linking them to the international market (Hess & Yeung, 2006). This has benefited from the market liberalisation and growth of information technology which has changed the global competitive dynamics.
Sony is one of the MNCs that have been utilising GPN in the manufacture of their PS4 gaming console (Sony Computer Entertainment, 2015c). In the manufacture of PS4, the procurement of products is done from China and other Asian countries. The products are then assembled in different countries globally and released to the global market. The gaming industry in which Sony PS4 is highly dependent on outsourcing due to the various elements that are involved in the game development cycle (Davies et al. , 2015). This includes concept development, pre-production, production, testing, and distribution.
This report will analyse GPN for Sony PS4 and determine who benefits most from the GPN structure. This will involve looking at the types of labour that goes into creating PS4 at different points in GPN and how this work is globally distributed. Next, the report will look at the institutional arrangements that best explains the structure of this GPN. Lastly, the report will determine whether the capture of value is evenly distributed throughout GPN and if not, who benefits most from its structure. What types of labour go into creating Sony PS4 at different points in the GPN Sony PS4 production network can be divided into two different parts which are interrelated.
These are the hardware and software products and they determine the types of labour required. Each of the segments has its own type of labour and has a distinct structure and geographical location (Johns, 2006). The hardware production for PS4 is carried out by console manufacturers. Console manufacturers are responsible for research and development, production and distribution to the final user.
Ashcraft, B. (2013). Report: College students forced to make the PlayStation 4 [Update]. Available at: http://kotaku.com/report-college-students-forced-to-make-playstation-4- 1443353519 (Accessed: 6 March 2017).
BBC. (2014). Sony sets up PlayStation plant in china. Available at: http://www.bbc.com/news/business-27572539 (Accessed: 6 March 2017).
Benkler, Y. (2006). The wealth of networks: How social production transforms markets and freedom. New Haven: Yale University Press.
Coe, N. M., Dicken, P. & Hess, M. (2008). ‘Global production networks: realizing the potential’, Journal of economic geography, 8(3), 271-295.
Davies, M., Read, H., Xynos, K., & Sutherland, I. (2015). ‘Forensic analysis of a Sony PlayStation 4: A first look’, Digital Investigation, 12, S81-S89.
Ernst, D. (2002). ‘Global production networks and the changing geography of innovation systems. Implications for developing countries’, Economics of innovation and new technology, 11(6), 497-523.
Fung, A., & Ho, V. (2015). Game Industries in Asia: Towards an Asian Formation of Game Culture. Routledge Handbook of New Media in Asia. London: Routledge, 377-390.
Henderson, J., Dicken, P., Hess, M., Coe, N., & Yeung, H. W. C. (2002). ‘Global production networks and the analysis of economic development’, Review of international political economy, 9(3), 436-464.
Hess, M., & Yeung, H. W. C. (2006). ‘Whither global production networks in economic geography?’ Past, present, and future’, Environment and Planning A, 38(7), 1193- 1204.
Johns, J. (2006). ‘Video games production networks: value capture, power relations and embeddedness’, Journal of Economic Geography, 6(2), 151-180.
Kenji, H. (2009). Can Outsourcing save Sony? Available at: https://www.bloomberg.com/news/articles/2009-01-30/can-outsourcing-save-sony- businessweek-business-news-stock-market-and-financial-advice (Accessed: 6 March 2017).
Lüthje, B. (2004). Global production networks and industrial upgrading in China: The case of electronics contract manufacturing (No. 74). Honolulu, HI: East-West Center.
Neilson, J., Pritchard, B., & Yeung, H. W. C. (2014). ‘Global value chains and global production networks in the changing international political economy: An introduction’, Review of International Political Economy, 21(1), 1-8.
Poon, T.S.C. (2004). ‘Beyond the global production networks: A case of further upgrading of Taiwan’s information technology industry’, International Journal of Technology and Globalisation, 1(1), p. 130
Sony Computer Entertainment. (2015c). PlayStation® global. Available at: https://www.playstation.com/country-selector/?cid=fromsonynet (Accessed: 6 March 2017).
Yang, D. Y. R., & Coe, N. M. (2009). ‘The governance of global production networks and regional development: a case study of Taiwanese PC production networks’, Growth and Change, 40(1), 30-53.