By 2008, the global consumer as well as industrial electronics had reached a staggering $92,000M. The market is also expected to expand at a rate of 7.2% annually in order to attain a value of 137,000 Million by 2014. Sony is one of the largest industrial electronic product manufacturers worldwide. The company provides a diversified range of products which ranges from audiovisual devices to information communication equipment. It also specializes in the manufacture of home appliances as well as other components. Sony is therefore positioned to benefit from the predicted growth in future electronic markets.
Networked Products and Services
According to s Sony (2011) networked products and services provides the next growth frontier for the corporation. One of the company's goals is to provide, via a wide range of high-end products, the most exciting and compelling content as well as entertainment to its customers worldwide. One of the latest technological frontiers that it is exploring is the integration of hardware content with various services via the network. An example of an initiative aimed at the realization of this is the integration of various networked products on the Sony Tablet. This is based on the Android ™ 3.O operating ssyetem. Tis device will target the market segment which is rapidly growing (Sony,2011)
Strategic mergers and acquisitions
Sony has entered into several strategic alliances as well as made some very important acquisitions in the past. In 2009m the company acquired a small and medium sized company that specializes in the manufacture of TFT liquid crystal display (LCD) from a company called Epson Imaging devices. In the same year is formed a joint venture with Sharp in order to produce as well as sell the large sized LCD panels as well as modules. Sony also formed a strategic alliance with Hon Hai Precision Industry, a Taiwanese company for the sake of producing LCD TVs for the U.S. market.
A focus on the BRIC countries
A review of the 2011 annual report indicates that the largest regional growth/economic activities exists in the emerging markets. The BRIC countries which includes Brazil, Russia, India and China . The BRIC countries form part of the globe's fastest growing economies. They also presents close to 40% of the world's population. Sony has already seen a considerable level of success in the Indian market. The company hopes to replicate a similar model in the rest of the BRIC countries as well as other emerging markets.
Samsung's Opportunities
Growing industrial electronic as well as consumer market
The global consumer as well as industrial electronics market is experiencing a considerably high level of growth.By 2008, the global consumer as well as industrial electronics had reached a staggering $92,000M. The market is also expected to expand at a rate of 7.2% annually in order to attain a value of 137,000 Million by 2014. Samsung is one of the largest industrial electronic product manufacturers worldwide. The company provides a diversified range of products which ranges from audiovisual devices to information communication equipment. It also specializes in the manufacture of home appliances as well as other components. Samsung is therefore positioned to benefit from the predicted growth in future electronic markets.
Investment in Supply Chain
The company can increase its investment in the supply chain through heavy investment in research and development aimed at improving its production as well as marketing.The company had intended to construct a twenty four -hour research and development system that is to be used for the continuous development as well as stimulation of demand.
Sale of affiliated companies
In the recent years, Samsung has sold off most of its affiliated companies in an effort geared at the reduction as well as restructuring of its debts. By 2002 alone, the number of companies affiliated with the electronic giant dropped from sixty one to twenty five. Its restructuring program is what has seen it overtake Hyundai in order to become the biggest company is South Korea.
International expansion
The company is currently warming up to enter into the international markets. A review of the 2011 annual report indicates that the largest regional growth/economic activities exists in the emerging markets. The BRIC countries which includes Brazil, Russia, India and China . The BRIC countries form part of the globe's fastest growing economies. They also presents close to 40% of the world's population
Sony Corporation's Threats
Fluctuations in the exchange rate
The operations of Sony Corporation are heavily affected by the fluctuations...
Factors like the Eurozone crisis and other factors that influence the exchange rate could negatively affects the operations of the company since it is a multinational that operates in different foreign currencies. The performance of Yen against Dollar and Euro can adversely affect the prices of Sony Products. A stronger Yen makes the products extremely pricey.
Poor economic conditions globally
The fact that Sony generates most of its revenues from Japan, USA and Europe means that an economic downturn in these regions can adversely affect its profitability. The company derived 74% of its revenue in 2009 from these regions. The deterioration of these regions' economic conditions severely depresses the level of consumer confidence which subsequently results in a reduction of demand for Sony products.
Counterfeit goods
The black market is adversely affecting the operations of the electronics manufacturing industry. Counterfeit goods such as electronics have been indicated to be in a continuous rise over the years. Sony has been a victim of counterfeiting in many parts of the global markets. These in the long run affect its operations.
Government regulations
Government operations have been indicated to affect the operations of the company. Sony has to comply with tax, labor as well as other environmental protection laws in countries in which it operates.
Stiff competition
The company faces stiff competition form its numerous competitors. This is bound to affect its profitability due to changes in market share.
Sony's competitors
Sony has several competitors. These competitors come at different levels of business. In Japan, its main competitors are Sharp and Toshiba. The company also competes with Panasonic.
Samsung's Threats
Fluctuations in the exchange rate
The operations of Samsung are heavily affected by the fluctuations in the global economy. Factors like the Eurozone crisis and other factors that influence the exchange rate could negatively affects the operations of the company since it is a multinational that operates in different foreign currencies.
Government regulations
Government operations have been indicated to affect the operations of the company. Samsung has to comply with tax, labor as well as other environmental protection laws in countries in which it operates.
Stiff competition
The company faces stiff competition form its numerous competitors. This is bound to affect its profitability due to changes in market share.
Samsung's competitors
The company faces stiff competition from other electronic giants such as Sony
Samsung has several competitors. These competitors come at different levels of business.
Technologies used in marketing Sony
Internet
Sony uses internet in its distribution endeavors. It uses the internet to help its customers in finding the nearest Sony retailers/shops.
E-mails
The company also uses e-mails in its marketing campaign.
Websites
The company uses websites to sell its products (e-commerce).It also uses the websites to communicate with its customers, display product information as well as take complaints (Customer Care).
Marketing technologies at Samsung
Internet
Sony uses internet in its distribution endeavors. It uses the internet to help its customers in finding the nearest Sony retailers/shops.
E-mails
The company also uses e-mails in its marketing campaign.
Websites
The company uses websites to sell its products (e-commerce).It also uses the websites to communicate with its customers, display product information as well as take complaints (Customer Care).
CRM
The company sues a specialized CRM system to help in its global supply chain. This helps it to keep its markets well equipped and ready to supply its ever increasing customer base.
References
Meyer, M. (2003). Performance compensation and the balanced scorecard. Working paper, The Wharton School, University of Pennsylvania.
Mintzberg, H. (1994). The rise and fall of strategic planning. New York: Free Press
Datamonitor (2010).Sony Corporation
http://wenku.baidu.com/view/0c994720dd36a32d7375812d.html
Sony (2011).2011 Annual report http://www.sony.net/SonyInfo/IR/financial/ar/report2011/SonyAR11-E.pdf
Appendix A
Figure 1: Mobile market share
Figure 2: Sony's global market share in Gaming Industry
