THE COMPETITIVE AND

DEVELOPMENT
STRATEGIES OF SONY
CORPORATION

Abstract
The report finds evaluation of the competitive and development strategy of a Japanese-
based company – Sony Corporations. It explains the usage of Porter’s Five Forces model
that leads the success of Sony. The brand reputation rely on its competitive position in
the market, which mainly focuses on its advantages and limitations compared to its
rivals. Due to this, few suggestions are listed to ensure the company continuously
obtain success in its future years of operation.

Nurul Ain Fatihah Yusni 2225978

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Contents
1.0
Introduction..................................................................................................................3
1.1 Objectives.........................................................................................................4
2.0 Competitive Strategy..............................................................................................4
3.0 Development of Competitive Position Based on the Advantages and Limitations
of Sony Corporations.............................................................................................7
4.0 Recommendation..................................................................................................10
5.0 Conclusion............................................................................................................11
6.0 References...........................................................................................................13

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1.0 Introduction

As part of strategic management, organizational long-term objectives are

assessed, strategies are developed, operations and monitoring are adjusted, and the

adoption method is analyzed and reviewed to make sure they are met in a functional

and efficient manner. (Tapera, 2014). Managing a company's strategy involves

continuously assessing and monitoring its industry and business. It includes

evaluating competitors, defining goals, and determining how well each strategy has

been implemented and whether it needs to be replaced by a new strategy to deal

with new competitors, innovative technology, or new industries. (Avishikta, 2019).

Strategic management is focused on a company's long-term sustainability and the

accomplishment of management objectives. It specifies objectives and approaches

to achieving them. In effect, strategic management enables companies to determine

the mission and goals of their organizations by establishing and maintaining a

competitive margin. This report will be focusing on the famous Japanese electrics

and communications corporation – Sony Corporation.

Sony Corporation is headquartered in Minato, Tokyo. It is a significant

producer of electronic goods worldwide. Sony sells a variety of goods, including

mobile phones, electronic games, and household appliances that are enjoyed by

millions of people. (Sony Group Portal, n.d). Many people who trust Sony's goods

use them, and the company has established itself in markets across all continents,

such as Asia, Europe, and America. Sony was founded in 1946 by Mararu Ibuka and

Akiro Morita as “Tokyo Tsuchin Kyogo” or "Tokyo Telecommunications Research

Institute," into the well-known global corporation that it is today (Sony Group Portal,

n.d). The business selected the name "Sony" because it combines the Latin word for

sound, "sonus," and the American term "sonny," as the initials TTK were already

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occupied. (Sony Corporation, n.d.). The main objective of the business was to

develop innovative products for customers. In the late 1950s, Sony introduced their

first cassette recorder. Later, the company expanded into the production of radios

and entered the global market. From that moment forward, Sony began to develop

into a global manufacturer and distributor of electronic products.

1.1 Objectives

A competitive strategy is a collection of choices required to promote corporate

objectives within a particular industry. A company may determine its position in

relation to its competitors by employing a specific competitive strategy, which in turn

helps it gain a competitive advantage. The enormous development that has marked

companies' competitive settings since Michael Porter developed one of the earliest

and most renowned categories of business strategies justifies the need to the

introduction of competitive strategy (Pisano & Hitt, 2012). Here, the Porter’s Five

Forces model and the Media Backbone Enterprise Management System will be

explained further. Besides that, a competitive position is the usefulness provided by

a brand, product, or service in comparison to alternative options in the market. This

can be measured through the advantages and limitations of Sony. By evaluating the

aspects, there will be recommendations that can be taken into consideration for the

company to thrive in the business market.

2.0 Competitive Strategy

A business gaining the chance to exceed the performance of its rivals in the

market is said to have a competitive strategy. This happens when they acquire

creative and novel concepts for their goods and market them for less than their

competitors. A business has a competitive strategy when it establishes a set of

unique characteristics that enable it surpass its rivals and become a lot more

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competitive. A fruitful competitive plan is needed in order to carry out those

measures and keep a competitive advantage over rivals. A company's view of its

competitors is communicated through its competitive strategy. (Yuleva, 2019). Often,

scientific research and technological advancement are seen as the only ways to

keep a business competitive and bring ground-breaking products to market. For

those business owners with small investment and financial aspects, this strategy

might lead to slower development. Sony's primary competitive strategy is product

differentiation, which is founded on Porter's Model (Meyer, 2017). Porter's Five

Forces analysis is a technique for determining how competitive an industry is. When

starting a new business or entering a new field, it is very advantageous. According to

this hypothesis, competition is influenced by factors other than adversaries. Instead,

the five basic forces – competition in the industry, potential of new entrants into the

industry, power of suppliers, power of customers, threat of substitute products –

determine the degree of industry competition. (Bruin, 2020). Sony uses this basic

technique to implement components that give their goods a stunning and attractive

appearance. To use the PlayStation as an illustration, innovation and originality were

some of the qualities that contributed to its success. Samsung, whose competitive

strategy also emphasizes product differentiation, is one of Sony's potential rivals.

(Martin, 2019). Samsung is a global company based in South Korea that is a

prominent manufacturer of electrical goods. It concentrates in manufacturing a

diverse range of consumer and business devices, including integrated systems,

digital media players, semiconductors, and appliances. Raising the level of invention

is one of the strategic goals of differentiation in order to strengthen Sony's

competitive edge. Sony is able to generate a broad range of inventive products as

they utilize computer-aided design (CAD) systems for the majority of their design

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processes. Despite the fact that other competitors frequently use CAD systems,

Sony can manage to acquire a competitive edge thanks to their creativity and well-

known brand name across various market segments. Eventually, the company's

product distinction allowed it to remain competitive in the market.

Furthermore, Sony employs the Media Backbone Enterprise Management

System, which is built on their Media Backbone Conductor software. Enterprise

systems are systems of information that aim to reduce costs and add value by

combining various processes, generating data which can be used to make decisions,

and managing resources effectively and proactively (Maulana, et al, 2021). Sony's

Media Backbone NavigatorX (NVX) software solution is a resource and activity

control utility that is designed for quick installation, flexibility and expansion. The

advantages of web-based accessibility and user platform independence are given,

while developing on an open-source framework and leveraging the power of web

tools allows to keep costs minimal. NVX also has a user-friendly integrated workflow

processor that allows people to develop their own operations using a simple drag-

and-drop interface. Users can also use adaptors to integrate existing external

devices such as transcoders, Non-Linear Editing System (NLEs), transfer

accelerators, Quality Control (QC) and storage applications. The procedure is

enhanced by the Media Backbone Enterprise Management System using five

essential elements. (Cannon, 2017). Firstly, webMethods from top IT provider

Software AG, which is potent Service Oriented Architecture (SOA) infrastructure for

a sturdy connectivity framework. Following that, due to a separate media transport,

the transmission and storing of massive media files can be managed using any

combination of both fresh and current infrastructure. Moreover, adapters to the

apparatus and software that comprise the material production. The fourth element is

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a media workflow processor, which organizes and enhances all factory processes.

Lastly, Media Navigator, a material control system, records track of all commercial

aspects. From the ground up, it is designed to be a concentrated, comprehensive

process system. The Enterprise Management System has a number of third-party

software instruments and is intended to be universal. Since none of the facilities are

identically configured, the Enterprise Management System is also adaptable,

enabling you to tailor the method to the exact requirements with much less cost,

manufacturing time, and risk. Even if the Enterprise Management System includes

pre-constructed process elements, graphical user interface panels, and models, it is

ideal to think of it as a whole toolkit. a few of Sony's Media Backbone Enterprise

Management System's rivals include Autodesk Fusion 360 Manage with Upchain,

Teamcenter, and OpenBOM. Every single one excels in various aspects but is

mainly comparable to the NVX.

3.0 Development of Competitive Position Based on the Advantages and

Limitations of Sony Corporations

Throughout its years of business, Sony has been able to gain a number of

advantages thanks to its competitive strategy. Sony has a reputation for creating a

wide range of practical technological goods. The brand has been able to grow its

earnings and last a long time in its industry thanks to the launch of novel goods

ranges. It is assured that there will be significant revenue and longevity by fulfilling

the demands of the entire market. Sony offers an extensive selection of market

goods and services, including everything from mobile devices to housing appliances

to entertainment. As an electronics manufacturer when it first stepped into the

market, Sony now divides its business into five different segments: images, music,

imaging & sensing solutions, pictures, and electronic devices. Due to their broad

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variety of products, their earnings graph does not show an abrupt fall despite a

decline in consumer demand for goods. Not to mention, Sony has worked hard to

live up to customer standards from the beginning. Since its inception, Sony has been

obsessively engrossed with meeting customer demands, which has allowed the

business to establish a well-known brand. (Shastri, 2022). Sony has struggled

diligently to live up to customer standards from the beginning. They have been

effective in building a reputation over time as an ethical, potent brand that works to

offer its customers superior goods. This image assists in their growth. Even though

Sony's products are significantly more expensive than those of its competitors,

consumers still choose Sony because they are confident in its brand and degree of

quality. Due to the market possibilities that are available, Sony has the ability to

grow. For the gratification of their customers, Sony has been able to enhance their

products and develop stronger IT-based products thanks to the expansion of the

video game industry. Playing computer games is a passion for many consumers,

and Sony's PlayStation product range is no exception. It even briefly held a

stranglehold over the market for its goods. Sony retains its position at the top

regardless of the entry of new rivals thanks to its revolutionary and rigorous

technology and offerings that each player demands. (Shastri, 2022). Other than that,

Sony's adoption of the most recent technologies has given the business access to a

wide range of new prospects. Sony has received acclaim for its innovation, but it has

struggled to keep up with the changing preferences and demands of its customers.

Although the business has been producing interesting products, it cannot solely

advertise them based on quality. Focusing on invention that meets customer

requirements is the key to increasing sales and fostering customer loyalty. Sony

must therefore seize the chance. Sony continually creates revolutionary products for

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its customers with the best-trained personnel. They might conduct comprehensive

market study and work on games and technology that require improvement.

However, Sony also has some limitation through the analysis of their

development of competitive position. The price of Sony goods is quite expensive.

The costs of Sony's goods are on par with those of products from competitors. Even

though the company has a sizable consumer base, many potential buyers avoid the

high cost. Many other companies are marketing goods with similar features for a

lesser price because they have access to affordable labour and resources. Sales are

also declining as a result of the lack of customers. Because of how expensive their

goods are, many people worldwide cannot purchase them. Customers are more

likely to move to a less expensive or more valuable resale name. Issues in the

corporation's database and network are also considered a limitation. Due to the

increasing dependence on internet products and services, Sony needs to manage

the safety of its databases and networks. This flaw is unacceptable because it casts

doubt on the company's and its customers' data protection. even though having the

latest innovations may present opportunities for Sony to expand its market share, the

industry is also expanding, and new technology will be employed and disseminated

by both rivals and the industry as a whole, posing a threat to Sony. Technology

advancements have recently ignited the launch of new products from various new

entities. These devices are less expensive than Sony but still having some amazing

functions. It might cause a decline in revenue for the company. Technological

advances have allowed recent entrants like Techno and TCL to offer devices of

excellent quality that may fight with Sony's yet being more reasonably priced.

(Shastri, 2022). Apart from that, Sony deals with program piracy and cyberattacks.

These pose a serious risk to Sony. Hackers could cause a company in the

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entertainment, electronics, or gaming sectors to suffer substantial financial deficits

and legal costs. The sale of Sony's games and associated products may suffer if

pirated software is used. Because it creates concerns about information safety for

both the business and customers, the company must come up with strategies to

safeguard its software assets and revenue rate.

4.0 Recommendation

Based on the foregoing report, Sony can seek a few advancements in order to

maintain its position in the market. In several technological innovations fields, for

instance televisions, video and sound cameras, and smartphones and tablets, it is

critical to produce products that buyers truly want and desire after, which requires

revamping the entire design process to render the graphical user interface enjoyable

as well as simpler to use. Efforts in research and development would need to be

greatly increased in order to produce novel and inventive items. Although Sony's

R&D team is highly proficient, their emphasis on user interface design and overall

product design is weak. It may also be beneficial to conduct more study into cutting-

edge monitor technologies, battery storage, and automated home systems. Sony

must also guarantee that their software is compatible with the latest updates in order

to boost the company's overall value. Sony does not contain the standard clout to

shape market trends and adhere to its own strategy. The practice of upholding a

person's own values has shown challenging. Strategies may be created, but they are

not always required to have a reason. This strategy has many advantages and has

the ability to rejuvenate Sony. (Francis, 2020). However, if Sony is to grow and

retrieve its market-leading status, it must maintain to work harder in order to do so.

Up until this point, Sony Pictures and Sony Music have generally centered on

the Western and Japanese marketplaces for both production of media such as

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movies, music and distribution. Larger developing market consumers, however,

would constantly desire exposure to more regional material, such as Bollywood-style

movies and music in India. Therefore, increasing the emphasis on the media industry

in China, Indonesia, Brazil, and other countries can open up a ton of new marketing

potential. An additional crucial aspect is that markets in developing nations need to

be added to the customer base for Sony's products. The needs of the people in

these nations must therefore be taken into consideration when designing goods and

advertising strategies. In order to watch shows even during constant power

interruptions, many of these nations need televisions with integrated storage

batteries. Sony has already left the PC industry, and the mobile sector, which

includes smartphones and tablets, does not seem to perform successfully either

(Morelli, 2014). Though it did turn a benefit Sony is not dominating in any way, be it

in terms of product design, characteristics, or market dominance. It is advised to

further concentrated R&D activities be launched immediately possible in order to

create technologies and interface designs that will revolutionize around the world.

This market segment is expected to grow significantly, so it is crucial to create

confined, appealing devices quickly, especially for growing markets. Sony can also

successfully create a community for its mobile devices that is similar to Apple's

iTunes by utilizing its enormous collection of music and video material. Additionally,

electronic commerce is still relatively small in both of these sizable markets, giving

Sony the opportunity to develop a user-friendly, safe digital transaction system that

may employ fingerprint sensors. Sony already has a lot of expertise with touch & go

cards that use near-field communication (NFC). For instance, the introduction of

SUICA in Japan for digital payments may be the key to boosting e-commerce in

developing nations when paired with mobile communications (Georgia Tech, n.d.).

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5.0 Conclusion

As one of the most sought-after and prominent producers of communication,

gaming systems, information technology, gadgets, and video for skilled markets and

consumers, Sony has become one of the richest and most likable companies in the

world. Sony's position in the marketplace has considerably strengthened over the

last few years. They have shown a determination to adapt to change and to face

obstacles, when necessary, but it appears that their capacity to thrive over the long

term may rely on how well these changes work out for them. The main point is that

customers should be conscious of all the benefits and restrictions of Sony before

using its products in terms of price and longevity, especially with the use of

smartphones and video gaming consoles. It is vital to recognize that Sony's situation

fits Porter's Five Forces model. This conclusion is based on how the company has

applied the model's five metrics to its activities over a period of time at different

phases of progression.

The use of online advertising to attract its consumers is a vital component of

Sony's business model and marketing plan.. The ability of Sony to select the ideal

blend of suggested universal and rigorous development strategies based on the

current competitive and industry circumstances is one of the main factors

contributing to its success (Shastri, 2021). The analysis's overall conclusion is that

the risks and expenses involved with each substantial development strategy differ,

and the company's decision to use a particular intensive development strategy is

related to its use of other, more general growth strategies.

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