Loading...

Strategic Planning for Sony Corporation

Term Paper 2014 12 Pages

Business economics - Business Management, Corporate Governance

Excerpt

Table of Contents

Introduction

Future strategy

Market Entry Strategy

Substantive Growth Strategy

Limited Growth Strategy

Retrenchment Strategy

The Key Options Sony Corporation Could adopt with its Justification

Roles and responsibilities of Staff directly involved in Strategy implementation

References

Introduction

Sony Corporation is one of the world biggest mobile communications company, founded in 1947, with its headquarters in Tokyo Japan. The president and Chief Executive Officer of the company is Kazou Hirai, the EVP and Chief Financial Officer is Kenichiro Yoshida. This is Company that embraced diversification as is indicated by the company website. They deal with a variety of products that range in the following categories with other subdivisions under them: Televisions, Digital imaging, Audio/Video PCs and other networked products, electronic components, professional solutions, and medical. They have three main offices in Japan that is Tokyo, Kanagawa and Miyagi which are used as research centers too. The head count in accordance to the website (Corporate Info, 2014) the consolidated head count head count as of March 31, 2013 was 146,300 and the consolidated sales and operating revenue in 2012 was 6,800,900 million yen.

This implies that this company does not operate independently but it is a parent company of several other subsidiaries in other parts of the world. Those statistics proof again that it is indeed a worldwide company that competes with other giants in the industry of (End Of An Era As Microsoft Buys Nokia Phones, 2014)mobile communication. These competitors are Apple, Nokia(Currently bought by the Microsoft company) and Samsung making it to be the fourth largest handset company after them. This is an indicator that they must have had a very good strategy and visionary leadership to come to such a competitive position in the world. (Corporate Info, 2014)

This report focuses is on how to maintain that competitive position and even how to overcome the competitors that have been in the first three positions for quite a while. It will focus on analyzing and evaluating various future strategies to identify the one that is most formidable. It will assess the roles and responsibilities of the Sony staff that have a direct involvement in strategy implementation, analyze the required resources in the implementation of the new strategy, and finally evaluate the contribution of SMART objectives which Sony could employ to reach its objectives and overall strategic implementation.

Future strategy

There are four key options that can be adopted by any business seeking to have a competitive edge against its competitors in the days to come. These options are: Market entry, substantive growth, limited growth and Retrenchment. These key options are categorized to be grand strategies that can determine a company’s future depending on the choice and implementation. First the discussion will be on each strategy, to understand the concept and know how relevant it is for this corporation before taking the final strategy.

Market Entry Strategy

This is a strategy that explains the way a business may increase its presence in many parts of the world. Some of the strategies include: mergers, acquisitions, licensing, strategic alliances, franchising among many others. Mergers refer to two or more business combining efforts with common objective of outdoing there competitor while still each of the parties to the merger maintain their own separate identity. (Thomas & David, 2008)Acquisition refers to the case where a business decides to acquire or buy out another business maybe in a different locality in a bid to increase its presence to that place. Strategic alliances refers to were to companies decide to pursue an objective with each of the equal parties sharing resources in their area of expertise to achieve competitive advantage. Licensing is the concepts were a business gives rights to a vendor to use their intellectual rights and in turn pay for it. Franchising in the other hand refers to the scenario of giving out a trade mark to a different trader to trade with it on behalf of the owner and make payments for such. (Pearce, 2007)

Substantive Growth Strategy

This is a strategy is about diversification. Diversification is categorized to be very different based on what the business is in need of. Diversification can also be referred to as integration. The different categorization of diversification include: Horizontal diversification, Vertical diversification and related/Concentric and Unrelated/ Conglomerate diversification. Horizontal diversification means a business entering into another business at the same level as it is or increase its products and services that are different from what they are doing currently but be viable within the same target group. Vertical diversification refers to a business acquiring that supply it with material or the ones that do its marketing. In short, it is where a business acquires other businesses that are either down or up its supply chain. The unrelated/ concentric diversification refers to the case of acquiring businesses that are related to the current business to increase profitability and its strengths and decrease its weaknesses. Related/ Conglomerate diversification refers to when a business decides to market products or services that do not have any relationship with their core business. (Pearce, 2007)

Limited Growth Strategy

This is a strategy aimed at determining whether the business is to do anything, do market penetration, market development, product development or innovation. This is a strategy that is well explained by (Igor, 1957) on the Igor Ansoffs Matrix.

This is igor Ansoffs matrix indicating when to take what action. In accordance to the matrix, when a business decides to maintain existing products in existing markets, they should adopt market penetration. When a business develops new products for existing markets that is known as product development strategy. When a business decides to sale existing products to new markets that is strategy that is known as market development. When a business has new products for new markets that is referred to as diversification. (Pearce, 2007)

[...]

Details

Pages
12
Year
2014
ISBN (eBook)
9783656911432
ISBN (Book)
9783656911449
File size
645 KB
Language
English
Catalog Number
v293560
Grade
Tags
strategic planning sony corporation

Author

Share

Previous

Title: Strategic Planning for Sony Corporation