Strategic audit of Sony Corporation Harvard Case Solution & Analysis

Strategic audit of Sony Corporation

Introduction

The inception of Sony Corporation was revealed by Konan Minato, a founder of the company in Tokyo, Japan in 1946. Although the corporation was owned by the Sony Group, which diversified the operations into electronics, financial services and entertainment. It is one of the most successful companies for providing the vast products of electronics, video games as well as the consultants of information technology in order to provide better results for their customers.

In the early21th century, the company’s financial condition worsened due to the recession occurred through the financial crisis, before the downfall. Sony’s profits and marketing strategies were highly focused on the ability of management in positioning as well as establishing the level of products or services offered into the market. However, sudden increase in the size of competition had affected the performance and therefore, reduced the competitive advantage of the particular business segment.

During the financial crisis in the early 2007, the Japanese Yen had appreciated its value and therefore decreased the level of stock market, which caused Sony a millions of losses due to increase in the price of products and high operational cost. However, in order to overcome the losses, Sony had developed a strategic plan to recover the damage from the financial crisis, although it had not achieved the plan and still struggling to stand in a competitive position against Apple, Samsung and other major brands.On the other hand, the sudden changes in the restructure of the operations would require at least 110 billion to recover but due to certain losses, the company has not sufficient resources to implement the plan.

Therefore, this case discussed about the alternate decisions to overcome all the hurdles faced by Sony after the financial crisis. In order to implement the plan, the internal as well as external analysis has taken for providing the better decisions to execute in the upcoming periods.

External Environment Analysis

So in order to know the current market situation where the company is operating, the following analysis is taken into consideration for disclosing the external relations of Sony and the execution of the current plan. The external strategic evaluation will identify the opportunities and threatsof the Sony Corporation and to know the future consequences of the proposed analysis.

Current and future opportunities for Sony

PESTLE Analysis

  1. Political Situation

The biggest problem for Sony Corporation was to establish its broadcast set up in the United States due to the policies implemented by the Japanese Government.The Company also failed to establish its position in China, Brazil as well as in Russia due to sudden political intervention by the government.

The opportunity for Sony within a country was to increase the level of exports because of minimum level of tariffs imposed in Japan.The political restructure can manage the level of revenues for Sony Corporation in order to overcome the potential losses.

  1. Economic Situation

Due to sudden changes in the economy after the financial crisis, the inflation rate is still high in Japan and therefore,it can reduce the level of purchasing power parity of the consumersthus, it can still negatively impact the level of revenues for Sony Corporation.

On the other hand, the opportunity for the company will be to increase the level of exports into other countries due to low export tariffs, which will boost the level of profits and manage the economic results within a country.

  1. Social Factor

It has been analysed that majority of electronic and game product were used by the Americans, which shows that the competition was high enough to establish within an economy, therefore the opportunity for Sony will be to increase the video game products in the established countries where the products can be diversified into different classes..........

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