STRATEGIC ANALYSIS

Strategic analysis of a company



Strategic analysis of a company

Introduction

In this assignment, the strategic analysis of a company an electronic industry known as Sony Corporation would be carried out. The strategic analysis would assist in identifying the strength and weaknesses of the company. It is important to analyze the factors that play a crucial role in the success of the company. These factors include competitive position of the firm, market share in the industry, advancement in technological developments and the future plans for upcoming projects. Therefore, these are all the ways through which strategic analysis of Sony Corporation will be conducted.

History of Company

The existing Sony Corporation has a different culture that has its establishments, deeply rooted in the history. The contribution of this culture was developed by the two founders known as Masaru Ibuka and Akio Morita. They both were dedicated electrical engineers and were very intelligent. They provided an overall mission and vision for the company. Ibuka, especially, provided regular advice and suggestions to the engineers involved in various kinds of projects. This helped to develop an umbrella strategy under which Sony operated and gave a proper direction to the lower engineers who worked for the vision and mission of the company. Even, though, everything was planned but the development of actual product involved lots of flexibility and innovation (Atsushi, 2007).

Analysis of Industry

It has been deduced by many analysts that competition in the consumer electronics industry is strong and does not have a bright future for potential entrants in the industry. However, a favorable position of the overall industry does not indicate that every company is going to earn high profits. The position of Sony to achieve core competencies in various business units would provide them the possibility of earning high revenues. However, their main task would be to apply unique business models that could make them to have a better position as compare to the industry average. In order to move forward, there is a room for the silver lining in the gloomy sky. Despite the economic slowdown in the recent years, Sony Corporation has nevertheless managed to incur 15% increase in sales and further increment in their operating income. These factors suggested that the firm did not have a defensive strategy for their operations (Sejin, 2008).

Analysis of Competitive Forces: Porter's Five Forces Analysis

a) Threat of Substitute Products (Low)

The potential threat regarding substitutes is reasonably low. The reason is the availability of few numbers of substitutes from other industries and the majority of them are in defunct position. Sony has worked very hard to acquire genuine reputation and strong customer loyalty. They have developed appropriate strategies and plans to position their products quite well in the majority of the markets. This factor has turned out to be a considerable strength for Sony Corporation.

b) Bargaining Power of Buyers (High)

The power of buyer is high because the consumer's switching to one brand from another does not involve any ...