The Swot Analysis Report Marketing Essay

SWOT analysis can be an indispensable source of company data and information. The purpose of conducting this article is to examine the exterior environment hazards and opportunity and the company inside environment (weaknesses and advantages).


The aim of this survey is to identify the opportunities and dangers that Sony corporation is facing on the market and How they could take advantage of there power to beat their weakness and become king in growing markets.


Identify opportunities, hazards, weakness and strength.

Explain reason for choosing each element of opportunities and hazards related to PES and competitors

Explain reason behind choosing each aspect of power and weaknesses related to interior resources and capability

Analyse how durability might be used to take good thing about opportunities and counter dangers.


Research Process

Collect data

Interpret and analyse data

Present in a report format

The group and individual research

This report is an individual research predicated on the group works results. Results such as PES research and opponents activities have been used to analyse exterior environment of Sony Company.

Information source

Key research publication such as 360 Datamonitor and keynote (very reliable)

Online newspaper, daily news and NY Times (very reliable)

Website articles: Sony public websites (reliable) and other (less reliable)

And group research information (reliable)

Plus my standard knowledge of the gambling industry (not the most reliable)


Company details

Sony Corporation is one of the biggest gadgets company. They develop, design, produce and sale gadgets around the globe. Masaru Ibuka and Akio Morita funded Sony in 1946; the company name at that time was Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Company). 1955, Sony lunched it first branded Enovation product, a radio transistor. Since that Sony stored introducing revolutionary digital; first Trinitron Colour Television set in 1968, Walkman in 1982 accompanied by the first Compact disc player and recently Blue Ray discs.

Key financial details

Source Sony gross annual reports : http://www. sony. net/SonyInfo/IR/ Sony has been experiencing continuous profit decline since 2008. Compared to income 8, 871. 4 billions in 2008, the group has noted 7, 181. 3 billion during fiscal season finishing March, 2011: representing almost a 1. 5 trillion of loss during those 4 years. And Sony is also wanting 520 billion extras damage for next fiscal 12 months [1]. The group is now planning to shut down some manufacturing bases and slice 10, 000 careers worldwide [2].



SWOT research is an enterprise tools that allow companies to complement their interior environment (strengths and weaknesses) to the effect of exterior environment (opportunities and risks). Companies such as Sony Firm use SWOT evaluation results to get an improved understanding of the strategic selections that they are facing.




Partnership with FIFA World Cup

Focus on appearing countries

Natural disasters at the headquarter base

Illegal intrusions to PlayStation network and lose of customer details




Focus on company brand

Diversified geographical clients base

Financial Decline

High cost manufacturing base

External environment

Opportunities: Relationship with FIFA

Image from http://www. ea. com/uk/football Sony has made lots of strategic collaboration and acquisition in the recent period. One of those alliances that benefit the game playing industry is with FIFA world cup. The group obtained the highest level of FIFA sponsorship for 8 years and gained the exclusivity to advertise their brand on any product related to FIFA e. g. Tv set, stadium, video gaming etc. The exclusivity on FIFA product imply that Sony is also touching their challengers' customer in the gambling industry. In fact the gaming FIFA is one of bestseller [8] game for last couple of years which is sold for other gaming system system such as Xbox and Nintendo [7].

Opportunities: Focus on growing BRIC countries

From http://www. techshout. com/laptops/2011/12 Brazil, Russia, India and China will be the world's fastest growing economies with an enormous demand of electric and entertainments. This provide business a large development opportunities into this emerging marketplaces. In India, Sony has an enormous existence in the movie and music industry and the group electric sales are growing faster than the country's electronic market. So the group has a hug privilege over it competition. Sony can replicate this model into other growing countries.

Having their business widened to growing countries can help Sony to get incomes from products that are in their maturities in the original markets. Those products aren't accessible to the marketplace and the product life routine is not maturing the same way as it does in the developed countries. So the PlayStation 3 3 that is matured and facing competition and substitutes in the traditional market can be a star in BRIC countries.

Threats: Natural disasters

In 2011, Japan has witnessed several natural disasters in form of earthquake, tsunami and radiation leak. Those disasters have damaged 8 of Sony's developing sites and one research and development lab. Those disasters didn't only impacted on there manufacturing capabilities but also on their logistics: supply circulation and procurement of row materials such as digital components were infected. In the video games activity of the group, the planned louche of Sony Vita for Christmas was postponed du to processing decline and many games such as MotorStorm and Yakuza were also postponed.

Threats: Illegal intrusion

In Apr 2011 the PlayStation network was hit by code hackers who gained unauthorised access to 77 millions individual accounts and stooled their private information such as name, address, email, day of birth. This has raised serious question about the security system of the group and may have harmed their trustworthiness amount their gamer customers.

Internal environment

Strength: Focus on company brand

Sony use what's called umbrella branding by inserting the business name alongside of the product name e. g. Sony Bravia, Sony Vaio, Sony PlayStation. In so doing Sony use their biggest intangible resources: The business reputation gained trough historical innovation and success (radio, Walkman, robot etc ) to market the product. This enables the product to declare its identities and pull strength from corporate and business brand.

Strength: diversified physical clients

Sony has a wide geographical coverage. Their product and services can be found world untamed. Their television set program, Sony Picture Tv set works in 140 countries and one of the most famous product, Sony PlayStation comes in 40 countries worldwide. Creating a diversified geographical occurrence provide group secure resources such as merged income, worldwide reputation, mixed real human knowledge and culture.

Weakness: financial decline

Sony's financial drop will have negative influences on the group performance and capabilities because you will see a drop on finance, workforce, skills, investment for R&D and core competence. Sony's products may also lose performance credited to less investment on research and development.

High cost manufacturing base

Most of Sony's manufacturing facilities are located in Japan from its major's customer's location. This imply that sonny supplier string and circulation can be sensible to dangers such as foreign exchange rate, taxes increase etc. It has a negative effect on resources because the price of circulation can be afflicted by many external treats.

How these advantages might enable the group to have benefit of opportunities and counter hazards?


Strength to conquer BRIC countries

Sony has it brand as it biggest intangible possessions, they have been know because of their innovatively and quality products for ten years. That reputation has certainly reached their concentrate on: economically expanding countries. The business's strong brand identities will certainly boost market access and customer approval.

Diversified geographical reach of the group mean that they are wire of working with diversified dialects, ethnicities and personal believes obstacles.

FIFA relationship: full off opportunities

"The FIFA video games cover all key areas of Sony's business - consumer electronics, games, movies and music. " Howard Stringer, CEO of Sony Corp. Sony is working to take full good thing about this opportunity. As FIFA organize footballs event across the world, the outdoors physical coverage of the group allow theme to easy put into action technology and advertisement to wherever FIFA's event are structured e. g. South Africa. Also Sony will love a reinforcement with their brand personality with such presence at the planet most viewed event: the world cup.


The illegitimate intrusion on the PlayStation network, fellow by lack of customer's personal information has been the biggest fiasco and has cost the group 14 billions during last year. Such a poor advertisement will have negative impact on their durability (brand reputation). The credibility and customer confidence will be badly harmed by the of 77 million customers data reduction.

Son's Diversified geographical client base might have consider as strength in one point and weakness on another. Actually, through the earthquake and flood, Japan infrastructure and current economic climate was badly hit. Not having their customer centered in Japan helped the group to reduce damage but on another point they may have experience difficulties to provide customers outside Japan.

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