Sony Corporation Harvard Case Solution & Analysis

Sony Corporation

Introduction

Sony Corporation usually known as Sony is a Japanese multi-national company that has been functioning since 1946. The company is headquartered in Kōnan Minato, Tokyo, Japan. The company has diverse business portfolio which includes entertainment services, electronic devices, games and financial sector services. Sony over the period of time has transformed into a leading manufacturer of electronic products. Sony is ranked as the 87th company on the Fortune 500 list of companies (Kotler, 2009).

The company has four operating segments which are Motion pictures, financial services, Music and the electronics department. The company has been operating in 204 countries with 180,500 employees worldwide. It is the one of the largest corporations operating in Japan in terms of revenue. The company has revenue of more than ¥6.493 trillion in 2012. It has also maintained a large reserve of cash with ¥885 billion on hand as of 2012, the company share were valued at $15 billion in the same year. The most profitable period for the company was the late 1990s and the early part of 2000 where the company successfully launched PlayStation line. However, the company faced financial crisis during the recession period of 2008 which affected the economy throughout the world.

Mission of the company

Sony is committed to develop a range of innovative products and multimedia services to consumers around the globe. The company is looking to strive and create exciting new products.

Vision of the company

Sony has a vision to develop into a broadband entertainment company while creating new digital entertainment experiences.

SWOT Analysis

Strengths:

Brand Image

Sony Corporation has developed a strong brand image which has been a key to its success. During a survey in 2012, Sony was ranked as Asia’s most valued brand.

Technology

Sony has been a keen promoter of using latest technology, which has developed the company into a technically advance one. It has a synonymous excellence with rich heritage of technological expertise. The company has been pioneers in developing Trinitron Color television, walkman, VCR and has also been of great support in developing magnetic recording tape, compact disc and Blue ray technology. Sony has brought in latest innovation with Crystal LED television, which was well received at the Consumer Electronics Show in Las Vegas.

Diverse Portfolio

The company has been in various industries ranging from electronic devices, games, financial sector services and media. This shows that the company is quite keen to enter new industries and explore new opportunities in the market.

PlayStation

PlayStation has been the biggest success for the company, which had actually revolutionized the company and transformed its revenues and made it turn into one of the most successful companies in the world. PlayStation is the most noteworthy innovation that has been successful since its inception and is still seen as tremendous consumer demand.

Supply Chain

Sony Corporation has over the years possessed the capacity of training employees and business partners to manage intense and complex logistic activities to further enhance business operations and its methods.

Weaknesses

High Cost

Sony has been a high cost product manufacturer especially in television units which has affected its business quite a lot.  This negative impact on the business of the company was further enhanced due to the recent launch of new televisions by competitors. Sony has seen its TV division lose lot momentum in the past two decades. The company has actually lost an equivalent of $6.3 billion for eight years in a row. It is losing its market share to manufacturers, such as LG and Samsung (Petersen, 2008).

Shift in Focus

Too much diversity in different business segments has the focus of the company from its core competencies. This has been a key factor for the failure of many of the products launched by Sony. Apple has been the real competitor to the company which has actually built the company without having a vast range of product portfolio...............................

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