Sony Corporation Case Study Example
Overview of Sony Corporation
Sony is an international manufacturer of Communication video and audio, information technology. Owing to 60 years of integrity and by supplying high-quality electronic pieces of equipment, Sony Corporation established itself as the no. 1 Electronic product manufacturer. it retains the product quality, reputation for its integrity and honesty.
Over the years Sony Corporation gained nearly universal brand recognition. It delivers an enthralling entertainment experience, and gains from the synergy between business and electronics, video and audio content creation, mobile, and desktop game interests. As an HD global leader, it offers an impressive range of HD content assets, and consumer products, driving the industry towards HD Digitalisation.
- Headquartered in Tokyo, Sony is a multinational conglomerate with total revenue of $78.88 m.
- Sony acquired Columbia Pictures Entertainment, an American company in 1989.
- Columbia Tristar Motion Picture Group has a library of over 4,000 movies.
- It is known for being the website interactive creator of SPE.
The company initially emerged from being a company manufacturing recording and broadcasting products to one that develops software and hardware.
Sony’s franchises and mergers allowed it to become a vertically integrated company. Sony’s vertical integration is unique since these global media conglomerates got integrated like Sony’s software and hardware segments.
Vertical integration proves to be beneficial as it enables companies to allow better information flow across the supply chain and reduce overall operational expenses.
The marketing concept of developing companies prioritizing consumer needs and satisfaction enables a company to achieve competitive markets. To be successful in places where consumers follow a marketing strategy, a well-organized marketing strategy needs to be planned.
A marketing strategy considers the portfolio of products and considers the probable advancements made by the competitors.
Target Market of Sony Corporation based on demographics
- Sony is a versatile electronic product manufacturing company that provides a comprehensive range of products and/or services.
- Sony emphasizes expanding their business in the women’s market, as they make more than 80% of the purchases from the company.
Product Differentiation Strategy
- Product quality: Sony emphasizes consumer products that are user-friendly and easy to use.
- Global leader: Sony is the no.1 market leader that manufactures HD smart television sets.
- Reputation: Sony places itself as one of the best global manufacturers before its consumers. Sony manufacturers unique and high-quality electronic consumer goods. The mainstream community embraced the brand’s innovation.
Sony Pricing Strategy
Promotional Strategy follows skimming, product pricing, and wholesale rating. The price range of Sony Smart Tv varies from $400 to over $21,000. The Television sets are priced high when they are newly launched in the market. The company reduces the price slowly. Prices usually vary based on the features and models of the TV sets.
Sony Marketing Mix
Because it produces and sells products keeping customer needs in mind, the marketing strategy followed by the Sony Corporation is effective.
Product: Product is a tangible substance that meets the requirements and expectations of customers. BRAVIA is a Sony brand that markets front projectors, television sets. Likewise, it sells a range of home theatre products under the sub-brand BRAVIA Theater. BRAVIA’s name is an abbreviation of “Best resolution audiovisual integrated architecture”.
Price: an enterprise sets product pricing based on consultations with the management team. Product pricing is the only variable that can be adjusted rapidly. Retail value, market value, limits, stipends, credit terms impact the advancement of a company’s marketing strategy. Price is a vital factor that impacts the assessment of value obtained by the clients.
Places: Sony-BRAVIA Targets customers living in metropolitan cities like Mumbai, Pune, and New Delhi. In the majority of these places, Sony has more than four wholesalers like Sony world. Likewise, there are Sony Service Centres are located in and around the urban territories.
Challenges faced by Sony Corporation
Sony’s Strategy got regarded as inefficient and lacking innovation. The tech-savvy nature of the products manufactured by Sony Corporation offered it a competitive edge over the past ten years. It is not the same anymore. Sony drifted away from innovative or tech-savvy products.
Apart from that, Sony Corporation got indulged in too many unprofitable businesses. Competitors were able to match the product quality and pricing. CD players and Television sets were facing tough competition and making low profits, and lower profitability.
- Product Inventions were not routed through company management. These products had features that could easily attract customers.
- Sony believes that it could face a low-cost economy in Korea. So, it should lessen the prices to compete against Korean products.
Even though there are duplicate firms that take the share and profit from Sony, the vital component of the brand’s achievement is the pursuit of excellence and innovative spirit that they can’t cope with. Sony aims at integrating its talent against the ever-increasing competition.