Sony
Problem Identification
Sony Corporation is a leading manufacturer and producer of game, electronics and entertainment products. For several decades, the company has dominated the market of the electronic sector. However, in the last few years, Sony has recorded a net loss for four consecutive years. In 2010, the company recorded a net loss of 40.8 billion Japanese Yen equivalent of U.S.$347 Million. In 2011, the company also recorded a net loss of 259.5 billion Japanese Yen, which equivalent to $2.2 Billion. In 2012, the company recorded $3.8 billion net loss. In 2014, Sony secures a net loss of equivalent of $1.1 billion. (Sony Corporation, 2014). Sony has been facing both internal and external challenges. Typically, the company has faced a stiff competition from other online game companies. Moreover, the appreciation of Japanese Yen over other major currencies adversely affects the ability of consumer to purchase Sony product from outside Japan leading to overall decline of consumer demand for the Sony product. In essence, Sony has been facing challenges to retain market shares with increasing competitions on its product globally.
Moreover, Sony management is still conservative and unwilling to implement substantial changes that can improve the company market viability despite consecutive yearly losses recorded by the company. The company rarely implements a merger and acquisition and by consequence, Sony stock's price dropped drastically in 2011 by more than half making investors to lose confidence in the Sony stocks.
Objective of this paper is to carry out the strategic analysis of the Sony Corporation. The report uses the Porter Five and SWOT analysis to carry out the strategic analysis.
Sony Strategy Analysis
Internal Rivalry
Sony operates across different sectors and the company main segments include Game, Electronics, Financial Services, and Pictures. Over the years, Sony has lost market shares in the electronic segments because of the intense competition that the company is facing. The company...
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