Sony Corporation, a leading Japanese maker of electronics, game, and entertainment crossroads, has reported exites for four consecutive years. The go with announced a record annual net loss of 520 billion yen ($6.4 billion) for the year ends in March 2012. Sonys main strategic problem lies in its numerous product lines that serve too many parts of the entertainment time value chain. The empire-building strategy not only caused the companys pattern and operation to slow down, but also impaired their engagement in all of the market segments they are engaged in. In addition to the problem of dis-synergies among Sonys product lines, they also position other external and internal challenges.
Externally, the appreciation of the Japanese yearn adversely affected the purchasing power of Sony products by non-Japanese consumers, and thus reduced the overall demand for Sony. The global economic crisis get-go in 2008 further aggravated Sonys profitability as consumer spending swingped significantly during the recession. Sony also experienced bad mess with the Great East Japan Earthquake. The initial calamity and its result disturbed Sonys operations and caused excessive restoration costs.
indoors the electronics and game industry, increasing competition made it difficult for Sony to entertain market share. Facing these external challenges, Sonys management team up was relatively conservative.
Restructurings were done on a small scale, and mergers and acquisitions were seldom conducted. Finally, Sonys technological innovation gradually lost their boundary line against their competitors. All of the above factors caused investor confidence in the company to drop dramatically, with Sonys stock price falling by much than half in 2011.
After reviewing Sonys business model, archives and financials, and conducting a Porters Five Forces Analysis and a SWOT analysis, we propose some strategic exhortations for Sony. We first recommend Sonys...If you want to get a full essay, order it on our website: Orderessay
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