Internal Analysis and Current Strategy of Sony - Case Study Example

Table of Contents Executive Summary----------------------------------------------------------------------------2 Internal Analysis of Sony---------------------------------------------------------------------4 Current Strategy of Sony---------------------------------------------------------------------6 Critical Evaluation ----------------------------------------------------------------------------7 Recommendations----------------------------------------------------------------------------10 References-------------------------------------------------------------------------------------12 Executive Summary Sony has been able to develop its business by ensuring quality and delivering on the promises. The company has grown and by using the market share, proper service and quality product has been able to grow. Sony has relied on its internal strengths and ensure efficient work force which has been there core competency in developing a business model to ensure maximum customer satisfaction. Sony has looked towards identifying their internal strength which is a strong brand name and the ability to provide customers with products which has high resolutions and ensures maximum customer satisfaction. This has helped Sony to identify its internal strengths and competencies. This has helped Sony to ensure that its current strategy has been crafted based on it. The company by being able to look into different areas of their core strengths has identified the strategy that will help to achieve its objectives. Sony looks towards implementing both short and long term strategy which is aimed at improving their brand image. Sony has looked towards developing its internal strategy by developing loyalty programs, provide discounts, use different modes of advertisement, ensure efficient salesman, and quick delivery process. This has helped build the required structure and helped to differentiate themselves from the others by ensuring that they provide special features and attractiveness in their product. Sony has understood their capabilities to the fullest extent and has designed a strategy where they look towards incorporating products both the low end customers as well. This will help Sony to be able to work on the niche market and craft products that fits well with the customers. Sony looks towards capitalizing on the opportunities that exist in the market by 1). Improving their market share by looking towards improving their brand image 2). Looking towards improved marketing strategies so that it allows flexibility and utilize the ability of the business towards the development of the business. The primary tactics for Sony should be towards improving the marketing aspect so that Sony is able to develop its brand further. Availability of service station and personnel to ensure that the problems faced by the customers are sorted out as soon as possible. This has helped Sony in building its brand image and ensured better after sales services thereby enhancing customer satisfaction. This will help Sony to develop the required infrastructure and will ensure that they are able to get maximum benefit from it. To be able to succeed in it Sony needs to look to have Looking towards dividing the business into different core product line i.e. high end consumer, low end consumer. Adding new products with the passage of time like battery, play station, iPods and similar other product. Improve the promotional aspect and look towards improved marketing strategies to develop the business. Following thr above strategy will ensure that Sony is able to build a customer base which is loyal. This will thereby promote the business for the electronic giant as it will be able to understand the mechanism better. This will thereby help Sony to ensure that the current strategies matches with the vision and mission statement which will thereby transform into better business opportunities for the management and the company. Internal Analysis The internal analysis of Sony will help to present more details pertaining to the strengths and weakness of Sony. This strengths and weakness will help to identify the areas that Sony can look towards developing so that they are able to provide better services and ensure customer satisfaction. The internal analysis which will dwell on several critical factors will help Sony to identify their strategies and will ensure that the company is able to ensure smooth transformation in their business (Cateora, Mary & Graham, 2009). The strength and weakness of Sony is as Internal factors Strength Weakness Strong Brand name because of quality products being offered by the company (SWOT, 2011) Increasing shipping cost (SWOT, 2011) Different products for different section of society (Ferell, 2002) Increasing cost associated with brand awareness (SWOT, 2011) Improved supply chain which ensures proper delivery of products High dependence on external bodies Increasing population providing a wider market to cater (Sony SWOT, 2011)   Flexibility (SWOT Analysis, 2011) allowing the business to be molded according to changing times   Increasing employee base as the company presently employs more that 1.7 lacks people. The ability of the company to identify people with the required skills and capabilities that will ensure better products has ensured that the company is able to tap the correct target customer and deliver products matching their requirements (Kramar, Bartram, Cieri, Noe, Hollenbeck, Gerhart, and Wright, 2011).   External Factors Opportunities Threats Merging and acquiring new business Rising fuel prices Looking towards increasing the interface between the company New players providing similar products and services Looking towards expanding into other markets Increased dependence on technology Looking towards improving the strategy towards improving customer satisfaction (Sony SWOT, 2011)   The key issues therefore for Sony has been to develop its strengths and look towards improving the business by molding the weakness into ways that will help Sony to use its core capabilities in the most effective way. Ability to mould itself with changing times as Sony has transformed itself by adopting new ways of advertisement, development of new trendy products like iPod and using different medium to deliver their message to the customers has ensured growing base of customers which thereby transforms into bigger market share. Strong brand as the company looks towards having product which is of high quality. The actions of the company also speak in the same direction as the company has looked towards making changes and amending the mistakes their products have by picking all the products from the market and making the changes. Also, the strong distribution network and the availability of product all across the globe have helped to strengthen the brand name (Czinkota & Ronkainen, 2004). This has helped Sony to reduce the risk of new entrant into the market. A customer looking for a product which is of high quality has resulted in fewer options. The company has also managed its external factors in a very effective way and has looked towards advertising in the most effective way so that they are able to gather appropriate market returns. Ability to mould itself with changing times as Sony has transformed itself by adopting new ways of advertisement, development of new trendy products like iPod and using different medium to deliver their message to the customers has ensured growing base of customers which thereby transforms into bigger market share. This has helped Sony to develop on its opportunities. Current Strategies Sony looks towards pursuing key strategies that will identify the direction that Sony needs to take so that it is able to achieve its vision. The strategies will help Sony to give a direction to their pattern of work and ensure better coordinations towards a common goal Short Term Objective Developing products which are more environment friendly and passing on the same message to the customers (Green Management, 2010) Looking toward improved marketing by employing different promotional and advertising tactics so that Sony is able to create a better image which will help customer to asscertain the benefits and pleasure they will get (Czinkota & Ronkainen, 2004) Key Performance Indicator: This will enable Sony to create a market for itself where it will be able to market in a manner which ensures maximum customer satisfaction and guiding the workforce towards developing products which confronts with the requirements of the customers. Long Term Objective Developing the brand image over a period of time so that customer find it easy to associate with the product Improve the business line by moving into non core activities which will help to diversify risk and ensure better opening for Sony which they can look to tap on (SWOT Attack, 2005) Key Performance Indicator: Sony needs to ensure that they are able to match their marketing strategies with the market conditions by gathering relevant information from the market. This will help to ensure that Sony is able to ensure maximum efficiency in their operations and will be able to guide their marketing efforts towards a common goal. Critical Analysis The critical analysis of Sony will help to understand the “objectives-strategy-tactics” of Sony that will ensure proper execution of the responsibilities Objectives The objective of Sony is to improve its market conditions which will help to improve the marketing strategy, expand by increasing their product line and improving the brand. The objective goes well with the strategies and market conditions that Sony has looked towards implementing in their work arena. Strategies Sony needs to lay stress on the marketing strategies by ensuring that they look towards highlighting the benefits of the products. Sony also needs to look towards retaining customers. For this Sony needs to develop loyalty programs, provide discounts, use different modes of advertisement, ensure efficient salesman and quick delivery process. Sony also needs to ensure that they are able to differentiate themselves from the others by ensuring that they provide special features and attractiveness in their product. Along with it Sony also needs to concentrate on the minute aspect of the business and look towards developing the marketing team in such a way that they are able to make the customer understand the product better. This will aid towards ensuring that customer satisfaction and liking for the product increases and will help to keep customer with the company (Ireland, Hoskisson & Hitt, 2007) Sony should look forward to rebrand itself. Since, the company is looking towards having products for all segment of the customers rebranding will ensure that they are able to present a correct picture before the customers. The company can look forward to change its brand logo especially for the lower end customers as it will help to differentiate between the different sections of customers. It will also ensure that the problems associated with the trademark gets sorted out. While designing the logo emphasis should be laid on the statement which should match with the mission statement. Rebranding will help Sony to ensure that they are able to create the required differentiation in their product thereby ensuring better market coverage Looking to develop the business by divulging into non core activities and developing product line i.e. high end consumer, low end consumer. This has helped Sony to ensure that every segment of the customer is eyed at. While looking to do that Sony has ensured that the product is of high quality and customer satisfaction gets enhanced by using the product. Consolidation of the business due to its sheer size and presence which has ensured that the smaller players are unable to match the competitive environment thereby providing Sony the extra leverage to market its product in a more aggressive manner Tactics Marketing is depended on the 4P’s i.e. Price, Place, Promotion and Packaging which Sony needs to incorporate in its tactics so that it is able to achieve its objective and ensure that the strategies provide the correct leverage that Sony is looking for. The primary tactics for Sony should be towards improving the marketing aspect so that Sony is able to develop its brand further. Improved packaging which has ensured that the product doesn’t get damaged during the transit period. While designing the packaging attractiveness has also been kept in mind which has helped to attract people towards the product. Improved production process to ensure easy conversion of raw materials into finished products at the same time ensuring that the errors in the manufacturing process is brought down to zero. Correct and ethical advertising that looks to highlight the features and quality that the customer purchasing the product will get. Having advertisements which doesn’t influence customers but instead bring forward the strengths of the company so that customer can choose the product after careful examination and comparison with other players in the market Availability of service station and personnel to ensure that the problems faced by the customers are sorted out as soon as possible. This has helped Sony in building its brand image and ensured better after sales services thereby enhancing customer satisfaction. Hiring the latest talents that have the required capabilities to solve the problems faced by the customer at their door step and in the quickest possible time possible (Wee, 2001) Sony has looked towards having a sound infrastructure by ensuring that the company develops its factories over different locations. This has helped Sony to take advantage of the local typologies and develop products continuously so that customer satisfaction gets enhanced and the quality in the product is the same (Koranteng, 1999). Sony has strong network coverage as the company has ensured strong distribution network all over the world. This has ensured easy availability of products thereby ensuring that the company is able to reach every nook and corner of the world with its product. Using the above tactics will help Sony to ensure that it is able to achieve its objective and look towards ensuring a mechanism which will help to achieve its current strategy. Recommendations Sony looking towards achieving its current strategy should look towards incorporating the following recommendations which will ensure that they are able to ensure improvement in the market Sony can look towards brand extension by rebranding themselves for the lower end customers. This will help Sony to get a new market and based on the quality of the product Sony will be able to capture a good chunk of the market and ensure that they are able to grow. Along with it Sony needs to ensure that its continues with its strong distribution network so that customers at all places are able to avail their products Sony also needs to improve its marketing aspect by concentrating on their strength i.e. quality. They need to highlight it in all their advertisement and look to make people aware of the after sales services as well. This will ensure that customer will find the product easy to use and will also get the benefits which customers are looking for. This will thereby also ensure differentiation from the competitors and will help Sony in building its brand further Sony should also look towards building its strategy which looks towards developing the market where it is able to mould the new product easily into the market. The report presents the manner in which Sony will be able to ensure that it is able to capitalize on its current strategy but has a limitation as it doesn’t consider the manner in which the other competitors look towards using their strategy for the development of the company. References Cateora, P.R. & Mary, C. G. & Graham, J.L. 2009. International Marketing, 14th edn. Irwin:McGraw-Hill. Czinkota, M.R. & Ronkainen, I. A. 2004, International Marketing, 7th edn. South-WesternPublishing:Australia. Green Management. 2011. Green Management. Retrieved on October 26, 2011 from http://www.sony.net/SonyInfo/csr/environment/management/gm2015/index.html Ireland, R. D, Hoskisson, R. E, and Hitt, M. A, 2007. Competing for advantage, Cengage Learning Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck., J, Gerhart., B, and Wright, P. 2011. Human Resource Management: Strategy, People, Performance, McGraw Hill: Sydney. Koranteng, J. 1999. Sony takes early lead in the competition. Advertising Age International, Volume 24, Issue 37, page 63-71 SWOT Attack. 2005. Sony Company Profile, History, Culture & SWOT. Retrieved on October 26, 2011 from http://www.echeat.com/essay.php?t=27662 SWOT. 2011. SWOT Analysis Sony. Retrieved October 26, 2011 from http://www.marketingteacher.com/swot/sony-swot.html Sony SWOT. 2011. Sony SWOT Analysis. Retrieved October 26, 2011 from http://www.businessteacher.org.uk/business-resources/swot-analysis-database/sony-swot-analysis/ Wee, T. 2001. The use of marketing research and intelligence in strategic planning: key issues and future trends, Marketing Intelligence and Planning, 19 (4) Read More