Sony Corporation

Sony Corporation

Introduction

This paper focuses on providing the Porter's five forces analysis based on Sony Television. Futher, to gain better insight of Sony Tv's, their strategies shall be discussed that are followed by the company in times of recession and financial turmoil and eventually manage their sales in this rough time. Further, recommendations are made to the board of directors of the Sony Corporation to either improve their strategies or retain their strategies. However, overall focus of this paper in on the core and most important invention of Sony Corporation, which is Sony Television. Further, Porter's five forces analysis is conducted to gain insight over Sony's competitive advantage on the production of television product line.

The Sony Corporation is an international firm that focuses on electronic products, such as television with high definition resolution. It is a company that made 89.6 billion pounds in the given year. The primary range of products of Sony Corporation is Bravia LCD Tv, VAIO systems and digital cyber shot cameras. These above mentioned products are considered to be the major products because their sales and revenue generated from these products accounts for 65% of operating revenue and sales. The three biggest markets for SONY are Europe with 25.7 % of operating revenue followed by Japan with 24.2 % and USA with 23.6%.

Discussion

External environment

For external environment analysis, the television industry of Sony shall be examined critically under the porter's fiver forces.

Threat of New Entrants - Low

Any new entrant in the market who is stepping in to initial phase of its business shall require huge economies of scale to ensure success of its business. A new entrepreneur shall need powerful relationships with the supplier in order to manufacture low rate products. The new entrant will incur great loss in this due course. In addition to this, any corporation that wishes to compete with Sony Television will need to have a well developed Research & Development unit and sophisticated technology. However, the new entrants can also be from other parts of the World, especially China where innovative technologies can be made available to the public in affordable prices.

Bargaining Power of Suppliers- Low

It is an economics law that when there is availability of anything in abundance its bargaining power decreases. Similarly, since there is large number of suppliers available in the main stream market, their bargaining power is considerably low. Companies that are involved in providing electronics, such as television, focus on importing such products from other international countries like China or Taiwan at much cheaper rate.

Due to recession and cut throat competition in pricing, majority of companies are shifting their manufacturing services and technology units in to these countries. The suppliers are pushed at extreme level to reduce their competitive pricing or they will end up getting bankrupted, if the consumers make purchases from other suppliers offering low rate products. Furthermore, the brand owners have moved to producing mass logistic manufacturer, so in this way they shall reduce the cost that is linked up with ...