Sony Corporation's Globalization and Strategic Operation

Sony Corporation is a multinational conglomerate corporation headquartered in Tokyo, Japan, and one of the world's largest media conglomerate with revenue of US$78.6 billion (as of FY 2009) based in Minato, Tokyo. Sony is one of the leading manufacturers of electronics, video, communications, video game consoles and information technology products for the consumer and professional markets. Its name is derived from Sonus, the Greek goddess of sound. Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its five operating segments--electronics, games, entertainment (motion pictures and music), financial services and other.

Mile Stones of Sony:

1946 - Establishment of Tokyo Telecommunications Engineering Corporation by Masaru Ibuka

1946 - Electronic Rice Cooker was innovated.

1958 - Company name changed to Sony Corporation

1959 - The first transistor TV was launched

1960 - Sony Corporation of America was established.

1967 - The first factory in abroad was opened in Taiwan.

1968 - Sony Ltd. Established in the United Kingdom.

1968 - Trinitron Color TV's were in the shops.

1975 - Home-use "Betamax"

1979 - Walkman

1989 - The first miniaturized camcorder

1994 - Sony Playstation one was started to be sold.

1996 - Sony Home PCs (VAIO) were launched.

2000 - Sony develops small biped entertainment robot

2001 - Sony Ericcson Mobile Communications established.

2003 -World's 1st next-generation optical disc Blu-ray Disc recorder

2004 - Sony BMG Music Entertainment established and World's 1st consumer digital HD video camera recorder HDR-FX1

2005 -BRAVIA brand for Sony widescreen LCD HDTV launched

2009 -HDR-XR520V and HDR-500V Handy cam (World's first camcorder with new back-illuminated CMOS image sensor) released

Today Sony is one of the most important companies in the world of business with 167,900 (as of March 31, 2010) employees.

Sony SWOT Analysis:

Sony Strenghts:

 Strong Brand Image

 High Market Share

 High Technological quality Products

 Diversified geographic base

 Pioneer in the Industry as Being Creative and Innovative

 Supports R&D Activites

Weaknesses :

* Over self-confidence which's level sometimes reaches not paying attention to their rivals.

* Short product lifecycle: Many Sony products seem to be obsolete or have one foot out of door. For example: Digital Camera in the place of Film Camera and Email in place of Fax machines

* They insist on their own formats.

* Competitively high prices.

Opportunities :

* Continuous growth in their sectors.

* Increasing demand in technological products around the world.

* Attraction of Chinese, Brazilian, Russian, Indian market.

* Partnership with FIFA

* Business reorganization

Threats:

* Strong competitors in the market such as SAMSUNG, LG, NOKIA

* Diversifications in unsuitable businesses for itself.

* Unfavorable foreign exchange rates

* Increasing raw material prices

* Counterfeit goods

* Government regulation

* Imitation of technology: We know that Sony strategy is to introduce new technology in the market. But after their invention many competitor companies imitate Sony's technology with adding some extra feature. For example: Portable walkman is Sony's concept. But now many companies has launched portable walkman with different design and feature.

Sony's Global Strategies:

* Making the product the same for each market

* Centralised control

* Identify customer needs and wants across international borders

* Economies of scale

* Lower costs

* Co-ordination of activities

* Faster product development

Sony PESTLE Analysis:

Political

- Tariff reduction in EU countries since this organization has been expanding with new members, This affects directly Sony's import and export. Subsequently, price will be a subject to be modified due to this policy.

- Stable political situations are becoming more and more important to Sony's production and manufacture; unfavorable political factor can be thread for growth and could have impact on financial condition. For Example, the Pictures segment is dependent upon high specialized union members thus; a strike by one or more of these unions could delay or halt production activities.

Economical

- In general, Sony's products are fairly expensive therefore; people in developing countries with minimum wage are not able to purchase their products. Despite the fact that Sony's productions are costly but durables, its competitors such as Samsung or Hitachi can produce similar products with competitive prices. As a consequence, Sony could lose its advantage in competition in developing countries which are considered as emerging and potential markets.

- Foreign exchange rate fluctuations can affect financial results because