Verified Document

Sony's SWOT Analysis Samsung's SWOT Essay

By 2008, the global consumer as well as industrial electronics had reached a staggering $92,000M. The market is also expected to expand at a rate of 7.2% annually in order to attain a value of 137,000 Million by 2014. Sony is one of the largest industrial electronic product manufacturers worldwide. The company provides a diversified range of products which ranges from audiovisual devices to information communication equipment. It also specializes in the manufacture of home appliances as well as other components. Sony is therefore positioned to benefit from the predicted growth in future electronic markets. Networked Products and Services

According to s Sony (2011) networked products and services provides the next growth frontier for the corporation. One of the company's goals is to provide, via a wide range of high-end products, the most exciting and compelling content as well as entertainment to its customers worldwide. One of the latest technological frontiers that it is exploring is the integration of hardware content with various services via the network. An example of an initiative aimed at the realization of this is the integration of various networked products on the Sony Tablet. This is based on the Android ™ 3.O operating ssyetem. Tis device will target the market segment which is rapidly growing (Sony,2011)

Strategic mergers and acquisitions

Sony has entered into several strategic alliances as well as made some very important acquisitions in the past. In 2009m the company acquired a small and medium sized company that specializes in the manufacture of TFT liquid crystal display (LCD) from a company called Epson Imaging devices. In the same year is formed a joint venture with Sharp in order to produce as well as sell the large sized LCD panels as well as modules. Sony also formed a strategic alliance with Hon Hai Precision Industry, a Taiwanese company for the sake of producing LCD TVs for the U.S. market.

A focus on the BRIC countries

A review of the 2011 annual report indicates that the largest regional growth/economic activities exists in the emerging markets. The BRIC countries which includes Brazil, Russia, India and China . The BRIC countries form part of the globe's fastest growing economies. They also presents close to 40% of the world's population. Sony has already seen a considerable level of success in the Indian market. The company hopes to replicate a similar model in the rest of the BRIC countries as well as other emerging markets.

Samsung's Opportunities

Growing industrial electronic as well as consumer market

The global consumer as well as industrial electronics market is experiencing a considerably high level of growth.By 2008, the global consumer as well as industrial electronics had reached a staggering $92,000M. The market is also expected to expand at a rate of 7.2% annually in order to attain a value of 137,000 Million by 2014. Samsung is one of the largest industrial electronic product manufacturers worldwide. The company provides a diversified range of products which ranges from audiovisual devices to information communication equipment. It also specializes in the manufacture of home appliances as well as other components. Samsung is therefore positioned to benefit from the predicted growth in future electronic markets.

Investment in Supply Chain

The company can increase its investment in the supply chain through heavy investment in research and development aimed at improving its production as well as marketing.The company had intended to construct a twenty four -hour research and development system that is to be used for the continuous development as well as stimulation of demand.

Sale of affiliated companies

In the recent years, Samsung has sold off most of its affiliated companies in an effort geared at the reduction as well as restructuring of its debts. By 2002 alone, the number of companies affiliated with the electronic giant dropped from sixty one to twenty five. Its restructuring program is what has seen it overtake Hyundai in order to become the biggest company is South Korea.

International expansion

The company is currently warming up to enter into the international markets. A review of the 2011 annual report indicates that the largest regional growth/economic activities exists in the emerging markets. The BRIC countries which includes Brazil, Russia, India and China . The BRIC countries form part of the globe's fastest growing economies. They also presents close to 40% of the world's population

Sony Corporation's Threats

Fluctuations in the exchange rate

The operations of Sony Corporation are heavily affected by the fluctuations...

Factors like the Eurozone crisis and other factors that influence the exchange rate could negatively affects the operations of the company since it is a multinational that operates in different foreign currencies. The performance of Yen against Dollar and Euro can adversely affect the prices of Sony Products. A stronger Yen makes the products extremely pricey.
Poor economic conditions globally

The fact that Sony generates most of its revenues from Japan, USA and Europe means that an economic downturn in these regions can adversely affect its profitability. The company derived 74% of its revenue in 2009 from these regions. The deterioration of these regions' economic conditions severely depresses the level of consumer confidence which subsequently results in a reduction of demand for Sony products.

Counterfeit goods

The black market is adversely affecting the operations of the electronics manufacturing industry. Counterfeit goods such as electronics have been indicated to be in a continuous rise over the years. Sony has been a victim of counterfeiting in many parts of the global markets. These in the long run affect its operations.

Government regulations

Government operations have been indicated to affect the operations of the company. Sony has to comply with tax, labor as well as other environmental protection laws in countries in which it operates.

Stiff competition

The company faces stiff competition form its numerous competitors. This is bound to affect its profitability due to changes in market share.

Sony's competitors

Sony has several competitors. These competitors come at different levels of business. In Japan, its main competitors are Sharp and Toshiba. The company also competes with Panasonic.

Samsung's Threats

Fluctuations in the exchange rate

The operations of Samsung are heavily affected by the fluctuations in the global economy. Factors like the Eurozone crisis and other factors that influence the exchange rate could negatively affects the operations of the company since it is a multinational that operates in different foreign currencies.

Government regulations

Government operations have been indicated to affect the operations of the company. Samsung has to comply with tax, labor as well as other environmental protection laws in countries in which it operates.

Stiff competition

The company faces stiff competition form its numerous competitors. This is bound to affect its profitability due to changes in market share.

Samsung's competitors

The company faces stiff competition from other electronic giants such as Sony

Samsung has several competitors. These competitors come at different levels of business.

Technologies used in marketing Sony

Internet

Sony uses internet in its distribution endeavors. It uses the internet to help its customers in finding the nearest Sony retailers/shops.

E-mails

The company also uses e-mails in its marketing campaign.

Websites

The company uses websites to sell its products (e-commerce).It also uses the websites to communicate with its customers, display product information as well as take complaints (Customer Care).

Marketing technologies at Samsung

Internet

Sony uses internet in its distribution endeavors. It uses the internet to help its customers in finding the nearest Sony retailers/shops.

E-mails

The company also uses e-mails in its marketing campaign.

Websites

The company uses websites to sell its products (e-commerce).It also uses the websites to communicate with its customers, display product information as well as take complaints (Customer Care).

CRM

The company sues a specialized CRM system to help in its global supply chain. This helps it to keep its markets well equipped and ready to supply its ever increasing customer base.

References

Meyer, M. (2003). Performance compensation and the balanced scorecard. Working paper, The Wharton School, University of Pennsylvania.

Mintzberg, H. (1994). The rise and fall of strategic planning. New York: Free Press

Datamonitor (2010).Sony Corporation

http://wenku.baidu.com/view/0c994720dd36a32d7375812d.html

Sony (2011).2011 Annual report http://www.sony.net/SonyInfo/IR/financial/ar/report2011/SonyAR11-E.pdf

Appendix A

Figure 1: Mobile market share

Figure 2: Sony's global market share in Gaming Industry

Sources used in this document:
References

Meyer, M. (2003). Performance compensation and the balanced scorecard. Working paper, The Wharton School, University of Pennsylvania.

Mintzberg, H. (1994). The rise and fall of strategic planning. New York: Free Press

Datamonitor (2010).Sony Corporation

http://wenku.baidu.com/view/0c994720dd36a32d7375812d.html
Sony (2011).2011 Annual report http://www.sony.net/SonyInfo/IR/financial/ar/report2011/SonyAR11-E.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

Sony Strategic Analysis
Words: 1275 Length: 4 Document Type: Term Paper

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

SWOT Analysis Iphones 5c 5s Promotion Please
Words: 890 Length: 3 Document Type: SWOT

SWOT Analysis iPhones 5C 5S promotion Please give strong clear examples. SWOT Analysis of iPhone 5C vs. 5S and promotions Both the iPhone 5C and the iPhone 5S have been extremely successful products for Apple thus far. However, they have been targeted to different demographics and have different relative strengths (and weaknesses) when compared with one another as well as with competitors. Strengths The iPhone 5S has been called "Apple's heavyweight competitor to the

Cloud Computing and Samsung
Words: 2515 Length: 8 Document Type: Research Paper

Samsung Electronics is the largest producer of mobile phones, LCD panels, semiconductors, and televisions in the world. Owned by the Chinese global business conglomerate Samsung Group and with its headquarters in Suwon, South Korea, Samsung has manufacturing facilities and sales operations in more than 80 countries across the globe. This paper discusses a number of strategic aspects relating to Samsung. The paper specifically determines the impact of the company's mission,

Organizational Case Analysis
Words: 2539 Length: 8 Document Type: Case Study

Organizational Case Analysis Organization Overview Apple Inc. is a multinational companies specializing in the designing, manufacturing and marketing of mobile communication devices such as personal computers and digital music players. The company also sells varieties of mobile telecommunication devices such as iPhone, iPod, iPad, and Mac. Additionally, Apple Inc. sells some professional software application such as Mac OS, iOS, iCloud and other varieties of communication accessories. Apple Inc. sells its products through

Apple Has Designed a New,
Words: 4394 Length: 14 Document Type: SWOT

There is a risk, however, that the company begins to lag the pace of technological change, and in such a situation would see reduced relevance in its industries. What the PEST analysis shows is that in general the external environmental forces have either a favorable or neutral impact on Apple's operations. Traditional sources of external risk (political/legal) are minimal and the other key risk source (technological change) has traditionally

Marketing Problem Nokia Marketing Problem: Lack of
Words: 911 Length: 3 Document Type: Essay

Marketing Problem Nokia Marketing problem: Lack of product innovation Current marketing environment of Nokia Marketing Problem Nokia Nokia Corporation is a Finnish company that manufactures mobile phones, mobile computers, and networks. The company also provides services such as maps and navigation, music, media and software solutions for mobile phones. From late 1990s to late 2000s, Nokia remained the highest mobile selling company of the world. This however has changed recently and many other companies

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now