SWOT Analysis Of Sony analyzes, No other consumer electronics company today is as steeped in history and innovation as Sony. Sony’s humble beginning started in Japan in 1946 from the sheer determination and hard work of two bright and enterprising young men. Both Masaru Ibuka and Akio Morita joined hands in making their dream of a successful global company a reality.
Did you know? The word ‘Sony’ was derived from 2 words that are ‘Sonus’ and ‘Sonny’. The word ‘Sonus’ is a Latin word which means ‘sound’. And the other word ‘Sonny’ was a common slang used to refer to young charming boys in the 1950s in the USA.
Sony is a major company in three different sectors: gaming, consumer electronics and entertainment. While the majority of businesses struggle to keep their market share in one industry, Sony has held on to its market share across the three areas for a long time.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct an SWOT analysis by Sony.
Sony At A Glance – Sony SWOT Analysis
Company: Sony Group Corporation
Founders: Akio Morita, Masaru Ibuka
Year of establishment: 7 May 1946, Nihonbashi, Tokyo, Japan
CEO: Kenichiro Yoshida
Headquarters: Minato City, Tokyo, Japan
Employees (2023): 1,09,700
Ticker Symbol: SONY
Annual Revenue (Dec 2020): USD $84.594 Billion
Profit net income (Dec 2020): USD $11 Billion
Sony Products & Services: Gallery televisions | Televisions | Home Theatre & Soundbars | Blu-ray Disc™ & DVD Players
Company Website: www.sony.com
Competitors: Microsoft | Philips | Apple | Samsung | Qualcomm
Sony SWOT Analysis
SWOT Analysis Of Sony analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Sony SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Sony SWOT Analysis. Below Is The Detailed SWOT Analysis Of Sony.
Sony Strengths – Sony SWOT Analysis
1. An experienced player in the global market: The global marketplace isn’t just highly complex and competitive, but it requires years of expertise to succeed. Sony expanded into Europe and the US in the US and Europe in the 60s and 70s in the 1960s and 70s. It was also a key player in the global market way before many of its competitors were created.
2. Largest Choice: Catering to the requirements of the market in general assures high returns and long-term viability. From household appliance to entertainment and mobile phone, Sony offers a vast array of consumer goods along with services.
3. High-Quality products: Offering high-quality products regularly is much more straightforward than doing it without the needs of the cherished customers in mind. Sony’s enormous investment into R&D has allowed the company to supply quality products with a high standard of service.
4. Valuable Brand: Since its beginning, Sony has obsessively focused on satisfying the needs of customers and has allowed the company to build an extremely valued brand. In the year 2019, Sony was ranked #39 Most Admired Companies and #60 of the world’s most valuable Brands.
5. Highly innovative: Sony is one of the most creative companies having created or contributed to the creation of innovative consumer products. Starting with Trinitron Color TV to Blu-Ray disc, VCR, Walkman, compact discs along with Crystal LED TV, Sony has made a huge contribution to the world of consumer electronics.
6. A Loyal Base of Customers: Sony has built up an impressive as well as faithful customers base. One example is that PlayStation’s loyalty program for players using PlayStation has ensured they will never consider switching to rivals.
Sony Weaknesses – Sony SWOT Analysis
1. Dependence on Electronics: Sony relies heavily on electronics, including cameras, TVs and smartphones’ image sensors. The fourth quarter in the the2019/20 financial year Sony’s operating profits fell by 57 percent due to a dramatic reduction in demand for electronics.
2. Negative publicity: If a company is compromised, it gives information about trade practices to rivals, and also can create a perception of incompetence among the public. This year, Sony had been hacked, resulting in the disclosure of trade secrets that were sensitive that strained relationships with other businesses.
3. High-end Products: Regardless of the product’s price, it’s the price that counts. Sony has premium products that come that come with more expensive prices that are higher than the average consumer. This is a significant problem due to the cost is a major deterrent to a lot of prospective customers.
4. Poor marketing: When compared to other competitors such as Apple or Xbox, Sony’s marketing efforts and promotions are sluggish and significantly less. Consumer products require a lot of marketing and promotion in order to sell regardless of their quality or image.
Sony’s Opportunities – Sony SWOT Analysis
1. Focus on emerging economies: The International Monetary Fund (IMF) predicts that growth in the economy will be higher in emerging markets, at 4.7 percent than developed markets with 2.1 percent over the next years. Sony extends operations into developing economies and capitalizes on the rising purchasing capacity within these economies.
2. Enhance Medical Imaging: The market for medical displays is expected to increase at a rate of 4.4 percent between 2018 and 2025. Sony is a player in this area and has only to build its imaging division to benefit from the anticipated growth.
3. Diversify Offers: Even though Sony’s PlayStation is an industry leader in gaming however, the division does not have diversity. In one sense, the increasing demand for mobile games is growing. Sony can diversify its gaming business to include more mobile-based games.
4. Expand by Acquisition: Instead of relying too heavily on the electronics market for consumers, Sony can leverage its enormous financial resources to purchase creative startups in lucrative industries such as the development of software.
Sony’s Threats – Sony SWOT Analysis
1. The devastation caused by Recession: The economic destruction caused by the pandemic has pushed countries further and further to the recession. In times of economic crisis costly premium products which are not as essential as Sony’s items are typically the first victims.
2. Stiff Competition: Starting from LG in televisions to Samsung in mobiles, as well as Nintendo on gaming. Sony faces fierce competition across all areas of its focus. In India the company’s sales have been declining for three times in three years since competitors cut market share. Sony could lose money in the near future as new and older competitors increase their game.
3. Technologies that are advancing: Even though technological advancements are always welcome they bridge gaps between the established companies and those who are new. In the past decade technological advancements have enabled newcomers such as Techno as well as TCL to create products of high-quality that are comparable to Sony’s however at lower costs. less expensive cost.
4. Markets oversaturated: Sony Mobile was forced to quit Southeast Asia after an rise in the number of smartphones resulted in oversaturation. As more companies are introduced to Sony’s markets, profits and demand for its products will decrease.
5. Global Pandemic: All businesses around the world have been struggling with a lack of demand and anxiety because of the pandemic. Sony’s operating profits for its first quarter in 2020 sank over 30 percent to the lowest level in the last four years. If the issue continues or gets worse the damage to the company’s financial stability is likely to be irreparable.
6. Risks of Hackers: Any company that is involved in the electronic, film and gaming industry is at risk from the threats from hackers. This could cause millions of claims and losses. Sony Pictures has expertise in the devastating consequences of a security breach.
7. Growing Counterfeiting: Trade in fake goods is 3.3 percent of all worldwide trade and is growing. High-end products such as Sony’s televisions, phones, and gaming consoles are prime targets for counterfeiters.
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