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Precious RaspadoMGT 200Angela Ydel

SONY COMPANY: An Evolution of Technology

A. Summary

Electronic Industry is very noticeable by showing great growth

and constant change In this industry! it needs to "aintain their

strategy to survive This is because o# the changes! including the

nature and high e$pectations o# the custo"ers %ithout this! it will

lead the" behind serving their custo"ers and co"petitors &ony

'orporation is one o# the"( this industry was "ade i"portance in

technology and produced e)ective strategies to "eet goals o# their

business &ony*s uni+ue electric co"ponents spread worldwide and

de,nitely poised #or success

&ony started May o# -./ when Totsu1o was established in

ihonbashi To1yo They began with a capital o# -.0!000 yen used

#or researches! "anu#actures and e+uip"ent*s 3uring -.40*s!

when world witnessed the invention o# "agnetic tape and tape

recorder( at the sa"e ti"e it also "ar1ed the decision o# the

co"pany to change its na"e to &ony 'orporation In -.0*s! the

invention o# the ,rst ever portable and chro"atron color television!

and the establish"ent o# &ony 'orporation in 5& Throughout the

ne$t period! they e$perienced growth in -.67 as they awarded as

the ,rst E""y Award that was ever given to a 8apanese 'o"pany

&ony saw their e$pansion during the 90*s with the ,rst ever '3!

:andy"an ca"corder and the achieve"ent o# 'olo"bia Pictures

Entertain"ent which was rena"ed by their co"pany in -..- As

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&ony entered co"puter industry #or technological innovations(

people witnessed advance"ent and develop"ent in phone

technology with the creation o# ;&ony Ericson Mobile

'o""unications< and video high capacity disc! ;=lu>ray< All o# these achieve"ents! technology is literally their everything And

that is why it continued to "a1e an i"pact on the electronics

industry

&ony has been success#ully planned #or its #uture growth and

survived because o# their e)ective business strategies =ut it is also

i"portant to be aware o# their co"petitors ?i1e &a"sung! they had

been both outsourcing televisions on their own =ut &ony always

believed that they li1e to concentrate on their ;&ony>uni+ue

applications< &ony is very @e$ible and open to other options to its

strategy #or"ulation in order to achieve their goals! that is why

they used di)erent "ethods and one o# the" is ;the #or"ation o# 

strategic partnerships< This approach was realied in the

association o# &ony and Google with regard to cellular phone

"ar1et =y wor1ing together! they were able to bene,t and help the

partnership that could have been diBcult to achieve independently

&ony*s success lies in its reliance on +uality personnel Their "ain

strategy regarding hu"an resources is to stay co"petitive because

o# the #ast "oving technological develop"ents and high

e$pectations o# people They address these through ;E"ployee

Manage"ent 'o""unication< The goal is to create worldwide

"eetings to help the" e$plain directly to the e"ployees and see1

their understanding and as well as to gain #eedbac1 and sharing o# 

in#or"ation #or the" to be united as a whole The proble" with this

is that e"ployees does not allow to voice out their concerns! so

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&ony i"ple"ented an ;E"ployee Cpinion &urvey< #or the" to be

deployed and be co"#ortable

Evidently! &ony is very been persistent when it co"es to e)ective

strategies #or the" to be  success#ul :owever! this doesn*t "eanthat they are not aware o# the changes and opportunities within the

"ar1etplace %ith this! &ony is still investing it resources and

searching develop"ent in order #or the" to "aintain a co"petitive

edge They are not only loo1ing #or e$isting products but also new

creations as well This strategy #ocus on the retail side o# its

distribution where custo"ers select cheaper priced television

instead o# purchasing e$pensive ones This tactic developed

another ca"paign "eant to incorporate entertain"ent and

electronics business

As #or the &ony*s #uture! even though they are strongly

co"petitive there is no doubt that there will be so"e threats and

challenging ti"es to the co"pany as the technology develops That

is why &tringer said that ;%e "ust increase our speed "ar1et with

desirable and co"petitively priced products and servicesD

= Case Study uestions

!. "rom a scale of ! to # $here ! is the %est and # is the $orst&

ho$ $ould you rate Sony's a%ility to create and de(loy their

strategies) *ustify your rating $ith details and e+am(les.

%e would rate &ony*s ability - or best because the technologies they"ade and strategies they have as a co"pany =eing in the electronicsco"pany is a tough co"petition 'onsu"ers are very de"anding andhave high e$pectations irst is in their technology where they "ade"any ,rsts They "ade the "agnetic tape and the ,rst tape recorderin -.40s 3uring the 0s! they "ade the ,rst portable television!'hro"atron color television In -.90s! they "ade the world*s ,rst ever'o"pact disc player! co"pact design o# the :andyca" ca"corder Inthe .0s! they created &ony Ericsson Mobile 'o""unications and in theearly twenty>,rst century! they introduced the high>capacity optical

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disc ;=lu>ray< %ith this technologies "ade ,rst and #ast! they really"ade technological innovations possible &econd is with theirstrategies where it is solid and well>structured They have a 1een1nowledge o# their strengths and wea1nesses They are aware o# theirco"petitors li1e when &ony and &a"sung has di)erent views to

outsourcing and building televisions on their own They also have sstrategic partnerships which allow the" to capitalie on its own andother ,r"s strengths to achieve synergy through a Foint venture Thiswas seen when &ony and Google have an alliance #or cellular phone"ar1et which bene,ts both o# the" being partners They also have astrong value o# their hu"an resources by having an E"ployee>Manage"ent co""unication to "aintain a pro#essional wor1ingrelationship with its e"ployees They also invests its resources in tosearch and develop"ent in order to "aintain a co"petitive edge in the"ar1etplace They also 1eep the co"petition with is co"petitors in

order to persuade their consu"ers to choose its product over others They also developed the ;"a1e believe< ca"paign to integrate itsentertain"ent and electronics business under one ca"paign %iththese ability to create and deploy strategies! they are deserving tohave a rate o# -,. -o$ does the industry in $hich Sony com(etes dictate the

ty(e of strategy it must im(lement in order to %e

successful) hy do you thin/ so)

=eing in the electronics industry "ust have an intense growth and

innovates products rapidly In order to survive! a co"pany "ust havean established and have a good strategy %e have three things toconsider in order being success#ul in the electronics industry>speed!ta1ing ris1s! and being on trend irst! we consider speed in thisindustry nowadays =ecause o# the high e$pectations o# consu"ersand e"erging co"petitors 'o"panies "ust not stic1 with theire$isting products and "ust achieve outsourcing which allow the" to

 Fu"p into new "ar1ets Also! they "ust innovate their products!develop low costs products! "ust have a clear co""unication #ro" the"anage"ent to the e"ployees and develop new strategies &econd!

we consider ta1ing ris1s because it results to "any opportunities Cnee$a"ple is when &ony started with a s"all capital and to be used #orresearch and eventual "anu#acture o# teleco""unication and"easuring e+uip"ent that resulted to one o# the largest electronicsco"pany in the world ?astly! the co"pany should be on trend %iththe di)erent technologies today and higher e$pectations o# theconsu"ers! being on trend is to consider It lets the co"panies be on

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the industry because it can give us pro,ts and let us 1now i# thebusiness is doing well %ith these things to consider! co"panies in theindustry are poised #or their success0a. -o$ might Sony (lan for the future in the electronicsindustry) hat o((ortunities and threats do you see coming in

Sony's "uture)

&ony loo1s not only to their e$isting products but also to new and other"ar1ets where it can advance on its position According to :oward&tringer! chair"an and 'EC o# &ony 'orporation! the co"pany "usthold true to its roots and purpose as a co"pany =eing a brand whichstands #or +uality and creativity with their products! their integrity andethical business practices! they have a strong #oundation #or thesuccess o# the co"pany in the #uture Their opportunities are havingdiverse and co"petitive prices in their products! strong brand

initiative! "ore sub"ar1ets! international "ar1et penetration and newline o# products Their threats are e"erging co"petitors! recession!sales drop! and hac1ers0%. -o$ do you suggest Sony may (re(are for you're a%ovementioned o((ortunities and threats)

 They should be vigilant to their co"petitors because o# the #astco"petition nowadays especially on the electronics business Theyshould also have target plans #or the #uture! so they can #ocus on whatto do and how they can do it better They should also need to have

product di)erentiation! so they can have a uni+ue product that isdi)erent #ro" other co"panies1a. 2esearch a%out Sony's com(etitors and determine theadvantages and disadvantages they (ossess com(ared toSony.

COMPANYA34ANTA5ES 36SA34ANTA5ES&a"sung   •:as a diverse line o# products

•&trength in teleco""unication

businesses

•:as nice design #eatures and

technology

• strongest patent port#olios

a"ong the technologyco"panies

• 3isappointing outco"e

o# products

• 3oes not have a

uni+ue product

?G   • Pioneer in ho"e appliances

• %ide range o# products

• Provides si"ilar

products with otherco"panies

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• Invest"ents in new and di)erent

areas

• ?ac1 o# e$pert

operatorsApple! Inc• Mar1eting and advertising

capabilities

•

&tronger de"and #or co"pany*sproducts

• &trong brand i"age

• Robust ,nancial per#or"ance

• :igher prices

• ot user #riendly

•

Patent in#ringe"ent

Microso#t   • =rand reputation

• &uccess#ul in ga"ing products

• Easy to use so#tware

• Poor ac+uisitions and

invest"ents

• 3ependence on

hardware"anu#acturers

• Mature P' Mar1ets

httpHHwwwslidesharenetHshubha"saini7-Hswot>analysis>"icroso#thttpHHwwwslidesharenetH'harinduHservice>strategy>o#>"icroso#t>charinduhttpHHthevelvettouchblogspotco"H20-7H-2Happle>inc>swot>analysis>20-7ht"l

1%. -o$ might Sony's com(etitors deal $ith thesedisadvantages in order to %e more com(etitive $ith Sony)

 They can deal with these disadvantages by having a strong brandreputation in the "ar1et! having an econo"ical and user #riendlyproducts! "aintain their strong ,nancial per#or"ance! "ust have atleast 2 strong product sales They should also need to have a strongadvertising ca"paign! develop outsourcing! and be vigilant to theirco"petitors and have a strong brand patent %ith these things &ony*sco"petitors li1e &a"sung! ?G! Apple! Microso#t and the li1e can beco"petitive with &ony 'orporation