Sony Corporation Harvard Case Solution & Analysis

Structural Changes

Sony has suffered losses because of the changes in the structure of the company in the last five years. The management has made quite a few changes where they have involved themselves in staff lay-offs to save money as well as closure of offices in various countries has affected the sales. Sony did not make profits until 2013 where the company was in certain amount of loss for the past five years. The CEO of the company, Kazuo Hirai has made the revolution by launching PS4 which has actually served as a unique product and is unmatchable with the features and games that it is offering (Adler, 2011).


Joint Ventures

The joint venture of Sony with Ericson has made the company enter into smart phone industry and tablet market. This step has made it capitalize the vast opportunities in the cellular market.

Photography division

The company’s photography division has provided it with the opportunity to generate higher revenues. The company can make use of different forms of advertising and marketing tactics in order to attract a lot of younger generation people towards purchasing these cameras.

PlayStation 4

The organization can turn into the pioneer in the video game industry later on; as they have had an incredible reaction from gamers for the Ps4 console. At the point when contrasted with Sony's rival which is essentially the Xbox One reassure, the Ps4 is at a lesser price point as compared to the comfort disclosed by Microsoft and can possibly have rearward similarity with Gaikai engineering. Sony has created the reassure considering non-mainstream engineers; this will be an incredible route for the Ps4 to have selective substance which won't be on alternate reassures (Kawakami, 2001).



The biggest competition for the company has been the industry wide competitors such as Samsung, Apple, etc. Sony faces stiff price competition from competitors such as Samsung and LG as well; they are rapidly gaining the traction with lower-cost products such as televisions and mobile devices.


Sony has been facing quite a lot of threats regarding their network system as recently the PlayStation network was hacked, the company is therefore looking to find a permanent solution to such problems.

Sony Marketing Strategies

Sony Target Market


Sony is a diverse brand that provides products and services which are being used by a variety of people. Sony focuses on expanding it overall segments in the world market by targeting people across the globe. However, women influence half of the total purchases made by the customers and account for 80% of sales for the company (Kotler, 2009).

Sony Differentiation

User friendly

Sony makes sure to provide products that are user friendly and easy to use by the customers.

Market Leader

Sony is especially a market leader in electronic goods and the number one brand in game consoles. The market share of television accounts for Sony as one of the most reputed brands (Kawakami, 2001).

Sony Positioning

The image and the position of Sony as a brand are quite positive in customer market. Sony’s products are considered as high quality, convenient and unique. The differentiating factor for Sony has been its constant improvement and innovation (Petersen, 2008).

Sony Promotional Strategies

Company’s pricing Strategy

Sony Corporation uses price skimming strategy to sell its products worldwide. They launch products at higher prices initially and then lower the prices gradually. This is the handiest method of making maximum profits in electronic products industry. Companies charge higher for the innovative product offering and unique products. After a certain period of time when the product does no longer remain unique; they lower the prices to attract more customers. The same strategy is used by all other similar companies too.

Factors affecting Pricing Strategy

Various factors account for the pricing policy of Sony that is both external and internal. Basically, Sony uses price skimming strategy for the high quality products and then reduces the prices with time to skim the successive segments of the market (Kawakami, 2001).

Sony Corporate Level Strategy

The corporate level strategy of Sony is the diversification strategy. The company has entered into various industries ranging from music industry, to financial services, to entertainment industry to electronic industry. However, most of the businesses of Sony are related to one another because of the transfer of knowledge as a whole; generally the company uses diversification strategy (Adler, 2011)....................................

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