Sony Summary, Conclusions and Recommendations Essay

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Total Length: 761 words ( 3 double-spaced pages)

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3.1.1. Strengths

-- Strong brand equity (Kiley and Helm, 2009)

-- Commitment to research and development (Sony Group Corporate Strategy Update FY2008 - FY2010)

-- Diversification

-- Hardware and content synergies

-- Market leadership in consumer electronics (Sony Corporation - SWOT Analysis)

5.3.1.2. Weaknesses

-- Difficult to change culture which impedes synergies and innovation (Game on, 2009)

-- Unprofitable across most product lines, with a loss of nearly $3 billion in 2008 (Game on, 2009)

-- Manufacturing in high-cost Japan (Game on, 2009)

-- Declining brand equity (Kiley and Helm, 2009)

5.3.1.3. Opportunities

-- Cheaper labor markets

-- Innovation in components and semiconductors

-- Consumer electronics leadership offers room for new product introduction as well as the ability to bundle content with the heardware

5.3.1.5. Threats

-- Lower-cost competitors

-- Continued recession with negative implications for consumer electronics in particular

-- Yen's further appreciation

-- Accelerated price wars

5.3.2. Sony needs to take steps to make sure that there are no further declines in its coveted brand.

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It needs to divest of unprofitable products that do not add to the company's overall brand standing in the market place. This issue must also be addressed through better marketing of the brand as innovative and exciting.

5.3.3. Divestiture would allow Sony to concentrate even more on its bread-and-butter consumer electronics business which is a necessity since the company's competitors are bringing more innovative products to market more quickly and at a lower price.

5.3.4. Sony ought to consider expanding its consumer product range to offer scaled-down, lower price products that can help offset the impacts of the economic downturn as well as fierce price competition.

5.3.5 the company should explore emerging Asian countries for manufacturing as well as new markets for sales growth.

5.3.6 With its hardware and content synergies, Sony may want to revisit its pricing strategy and view the hardware as a loss-leader with the goal of making a larger profit.....

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