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Detailed S.W.O.T Analysis of Sony Corporation – Global Electronics and Entertainment Giant

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Previously we looked into the SWOT Analysis of one of South Asia’s most known electronic retailers, Panasonic. This time, we will delve into the SWOT Analysis of Sony Corporation in full depth

Sony is a well-known global consumer electronics brand from Japan, with a reputation for cutting-edge technology, innovative digital concepts, and superior after-sales support. They began their sales mid-1900s and since then have made a name for themselves for unwavering quality.

One of Sony’s fallbacks is its marketing strategy, putting them at a disadvantage regardless of their superior quality products. Marketing evolves with time, according to the demands and preferences of the present population. If you want to learn more about doing effective marketing in today’s world, check out the Free MasterClass on Digital Marketing 101 taught by Karan Shah, CEO and Founder of IIDE.

Do you want to learn about how Sony Corporation has flourished over the years and the factors that helped it become a global giant? In order to answer that, in this case study, we will do a detailed SWOT Analysis of Sony Corporation. Before we begin, let us learn more about Sony, its founding, products, financial status and competitors.

 

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About Sony 

 

The Sony Corporation is a Japanese multinational business with headquarters in Tokyo. It is a significant technological business that is one of the world’s largest producers of consumer and professional electronic goods, as well as the world’s largest video game console manufacturer and publisher. 

The electric rice cooker was the company’s first consumer product. Despite the dismal sales of this product, Totsuko, as the company was known then, didn’t suffer a significant setback as it had a profitable repair operation for radios and other electrical equipment. The company went big when they released their very own music device which was powered by a transistor.

SWOT Analysis of Sony Corporations - First Sony product, rice cooker | IIDE

 

In the 1960s and 1970s, Sony moved into the international markets of the United States and Europe, and it has been a significant worldwide player – long before most of its competitors.

 

Quick Stats About SONY
Founder Masaru Ibuka
Year Founded 1946
Origin Minato City, Tokyo, Japan
No. of Employees 109,700
Company Type Public
Market Cap $139.77 Billion
Annual Revenue ¥8.999 Trillion
Net Profit ¥1.191 Trillion

 

Products and Services by Sony Corporation

Sony has been long-standing and flourishing in the electronics and entertainment industry by selling:

  • Consumer Electronics
  • Semiconductor and Computer Hardware
  • Films, Music and Tv Shows
  • Telecommunications Equipment & Network Services
  • Financial, Insurance and Banking Services

 

Competitors of Sony Corporation

Being in the electronics industry, Sony is faced with major competitors. Their top 5 major competitors are:

  • Apple 
  • Samsung 
  • Panasonic
  • LG Electronics
  • Phillips

 

SWOT Analysis of Sony Corporation

 

SWOT Analysis of SONY Corporation | IIDE

 

Being the multinational, multi-billion dollar behemoth, Sony Corporation is an extremely complicated organisation that requires us to conduct a full-scale SWOT analysis of the company to get a better understanding of it. The following segments will explore each aspect of the SWOT analysis of Sony Corporation.

1. Strengths of Sony

Strengths refer to the internal strategic factors that support business growth and profitability. The following strengths contribute to profitability in Sony’s case:

 

  • ​​Broad Range: Meeting the demands of the whole market ensures significant profitability and long-term viability. Sony offers a diverse range of consumer products and services, ranging from mobile devices to home appliances and entertainment.
  • Highly Innovative: Sony has made significant contributions to the consumer electronics sector, from the Crystal LED TV to the Blu-Ray disc, VCR, compact disc, Walkman, and alot more. Sony is one of the most inventive businesses in the world, having developed or assisted in the development of several breakthrough consumer items. 
  • Quality Assurance: Delivering promising quality products that meet the needs of the customers is taxing to achieve. Sony has been able to consistently deliver high-quality goods to its customers with the support of its significant R&D spending. 
  • Value Brand Reputation: Sony has been obsessively focused on meeting the demands of consumers from its inception, allowing the firm to cultivate a highly valued brand. Sony was placed #39 on the Top Regarded Companies list and #47 on the World’s Most Valuable Brands list in 2020.
  • Loyal Consumer Base: Sony has a sizable and devoted customer base. For one thing, Sony’s loyalty programme for PlayStation users has assured that they will never consider moving to a competition.

 

2. Weaknesses of Sony

This aspect of the SWOT analysis identifies Sony’s weaknesses or the internal strategic factors that limit or reduce the company’s performance. Weaknesses create barriers to business growth. Sony’s weaknesses are as follows:

 

  • Weak Marketing Game: Sony’s marketing efforts and promotional activities are lacklustre and significantly lower when compared to competitors such as Apple and Xbox. Regardless of quality or reputation, consumer items require significant marketing and promotion to sell.
  • Lack of Affordability: The pricing of the brand is a major flaw since it is costly and not always promising. Countless individuals throughout the world are unable to buy Sony’s products due to their exorbitant cost. Customers are more likely to move to a less expensive brand or to a brand with a high resale value, such as Apple.
  • Tardy Product Launches: The sector in which Sony operates is extremely competitive and demanding. In comparison to its competitors, Sony takes a long time to release new products. As a result, an unfavourable perception is formed, and purchase rates are reduced.

 

3. Opportunities for Sony 

 

  • Gamers Market: Sony’s PlayStation product line has established a dedicated and loyal gaming customer base. It even had a monopoly on the market for a while with its products. Despite the entry of new competitors, Sony claims the top spot with innovative and demanding technologies and features that every gamer seeks out for. 

SWOT Analysis of Sony Corporations - Sony gaming | IIDE

  • Promising Innovations: While Sony is recognised for its innovation, it has fallen short in one important area: recognising changing customer demands and preferences. The firm has been developing novel items, but it cannot sell them purely on the basis of their quality. Focusing on innovation that meets the requirements of customers is the key to increasing sales and increasing customer loyalty. As a result, Sony must seize the chance.
  • Acquisitions: The firm must concentrate on developing new growth channels and expanding its market. Acquisitions can aid in the company’s diversification into new markets. They may also be able to assist the firm in bolstering its position in current markets.

 

4. Threats to Sony 

Sony must overcome and solve threats to its electronics, gaming, entertainment, and financial services businesses. Threats are external strategic factors that potentially bring down business performance. Sony faces the following threats in its external environment:

 

  • Cyber attacks: These are a major threat against Sony. Hackers represent a threat to any firm that works in the film, electronics, or gaming industries, which can result in millions of dollars in damages and litigation.
  • Competitive rivalry: Sony faces tough competition from other firms that are equally aggressive worldwide, in all areas of concentration, from LG in televisions to Samsung and Apple in cell phones and Nintendo in games. The company’s sales in India have been falling for three years in a row as competitors take market share. As new and established competitors step up their game, Sony may lose revenue in the future. 
  • Software Piracy: Imitation of software can decrease revenues from Sony’s gaming and related products. Thus, it is essential for the company to develop solutions to protect its software products and profitability rate
  • Technology Advances: Technological advancements over the previous decade have enabled entrants like Techno and TCL to provide high-quality devices that can compete with Sony’s but at a lower cost.

 

With this, we come to the end of the SWOT Analysis of Sony Corporation. Let’s conclude all that we have learned in this detailed case study.

 

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Conclusion

 

Sony has been a very well-established company over the years and has always been known for quality and innovative products. Further business diversification can increase Sony’s growth. It has the opportunity to develop new products to create new income streams. However, as seen they need to focus on early and timely product launches as well as reasonable and valuable pricing. 

Sony stands weak in its marketing game. Today the digital market is highly valuable for businesses of all types to reach targeted consumers. Sony can highly benefit from digital marketing due to its cost-effectiveness and increasing relevance.

Getting the right knowledge about Digital Marketing and Completing Certified Courses may get you a chance of working with top companies including Sony.

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If you like such in-depth analysis of companies, find more such insightful case studies on our IIDE Knowledge portal.

Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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