Sony SWOT Analysis | SWOT Analysis of Sony
Company Name: Sony
Founded by: Akio Morita & Masaru Ibuka
CEO: Kenichiro Yoshida
Year established: May 7, 1946
Headquarter: Minato City, Tokyo, Japan
Number of Employees (Dec. 2020): 114,4,00
Type: Public
Ticker Symbol: SNE
Annual Revenue (end 2019): US$79.2 billion
Profit (Net income) (end 2019): US$6 billion
Products & Services: TVs | Personal Computers| Smartphones| Cameras | Electronic Components| Gaming | Music| Movies | Financial Services
Competitors: Panasonic |Samsung | LG Elect. | Toshiba | Sanyo | Lenovo | Philips | HP | Microsoft | Acer | Nintendo | Olympus | Nikon | Canon and more
Sony SWOT Analysis | SWOT Analysis of Sony
Did you know Sony History?
Two persons are behind Sony’s remarkable success. Mr. Masaru Ibuka, an engineer, and Mr. Akio Morita, a physicist decided to start electrical equipment and repair company. They established Tokyo Telecommunications Engineering Corporation, (Tokyo Tsushin Kogyo K.K.) on May 7, 1946. It is also known as also Tokyo Tsushin Kogyo K.K. The new company has no machines and has little scientific equipment. With their intelligence and engineering skills, Ibuka and Morita set out to create new markets.
The Birth of the word “Sony”
In 1955, the management decided to use the logo “SONY” on Totsuko products. Three years later, the company changed its name to Sony Corporation. The name “Sony” results from the combination of two concepts. The first is the Latin root “sonus”, the origin of words such as “sound” and “sound”. The second is the expression “sonny boy”, then very common in Japan and designating a young person with an open mind and modern. This new name perfectly represents the spirit of the company, and then made up of a group of young people bursting with energy and passion for limitless creativity.
Since the company was formed over 74 years ago, the workforce has grown from 20 employees to nearly 160,000 people working around the world.
Sony has always been an international company. From the start, Akio Morita maintained that his company should aim for a global market and be careful not to restrict its activities to Japan alone. He also insisted that the Sony name should be prominently displayed on all of the company’s products, so as to maximize the power of the brand.
When we talk about consumer electronics, gaming, and entertainment, the first thing which comes to our mind is Sony. Sony is the largest global player in this segment while other companies still struggle to sustain their place and name in the electronic sector. Sony has provided major contributions in all three segments.
This is only possible with wide experience, experts, and new strategies. To identify Sony’s strengths, weaknesses, opportunities, and threats, you have to read this SWOT analysis. The founder of this company is Akio Morita and Masaru Ibuka and its headquarter is located in Tokyo, Japan. Kenichiro Yoshida is the current CEO of the company.
Sony SWOT Analysis | SWOT Analysis of Sony
Sony’s Strengths:
Seasoned Global Player:
To achieve something bigger or out of proportion, you need extensive experience to stand out in this complex and competitive market. In the 1960s and 70s, Sony extended to the Europe and US as a main global player ahead of many other companies.
Widest Range:
From home appliances to mobiles and entertainment, Sony provides a vast range of useful products and services. In this way, they earn a major profit and sustainability.
Top Quality Products:
The company’s huge investment in R&D allowed it to offer top quality products. It is really tough to offer new products consistently without the concern of respected users.
Precious Brand:
Since its launch, Sony has successfully fulfilled the need of consumers. It was ranked at 39 in the list of 60 of the World’s Most Valuable Brands.
Extremely Innovative:
Sony is considered as the highly innovative electronic brand in the world due to its contribution and products. Sony has changed the world with its Trinitron Color TV, Blu-Ray discs, VCRs, and LED TVs.
Reliable Consumer Base:
Due to its reliable products and services, Sony has managed to achieve a huge and loyal fan-base. Through their loyalty program for gamers by PlayStation, Sony has achieved millions of users and fan-following.
Sony SWOT Analysis | SWOT Analysis of Sony
Sony’s Weaknesses:
Over-Reliance on Electronics:
The backbone of Sony is its electronic products. They majorly depend on their TVs, smartphones, and cameras. In the FY of 2019/20, Sony’s current revenues decreased by 57 % due to the harsh decline in order for electronics.
Unconstructive Advertising:
In 2014, Sony’s trade secrets were hacked and competitors had taken advantage of this mishandling. This thing had damaged the company’s name and reputation in the global market.
Costly Products:
The price factor plays an important role to show your brand worth and image. Due to costly products, the company faces a huge backlash from loyal customers. They should revise their price policy in order to remove this weakness.
Poor Marketing Strategy:
This is the biggest weakness of Sony because they are too weak in advertising and promotional activities. In the presence of heavyweight competitors like Apple and Xbox, Sony should think about extensive marketing and innovative promotional ideas to advertise their products.
Sony SWOT Analysis | SWOT Analysis of Sony
Sony’s Opportunities:
Pay Attention to Rising Economies:
Economic growth will be quicker in rising markets at 4.7 % rather than in developing economies at 2.1 % according to the IMF. Sony should develop its working in rising countries to doubles the profit and sale.
Support Medical Imaging:
It is an estimate that the medical imaging market will rise at a CAGR of 4.4 % from 2018-2025. Sony has a big opportunity to expand its expenditure in this sector to support its imaging division.
Diversify Contributions:
Additionally, Sony’s PlayStation is a vital gaming player, but this sector also requires diversification. Sony should think about mobile-based games in order to enhance their gaming sector for smartphone users.
Develop Through Achievement:
Sony should focus on improving software technologies to acquire global coverage. They should expand this sector instead of depending on their electronic products. This thing will help to improve their financial resources and plans.
Sony SWOT Analysis | SWOT Analysis of Sony
Sony’s Threats:
The Destruction of Decline:
Due to the COVID-19 impact, the electronic industry is facing a destructive decline. In this economic hardship, Sony’s also faces a huge decline in profits.
Hard Competition:
Sony is always facing trouble from other competitors such as LG, Samsung, and Nintendo. These three strong competitors have damage the sales of Sony in India. Other competitors can also harm the name of Sony.
Progress in Technology:
We always welcomed new technologies and innovations. Some newcomers like TCL and Techno offers quality products at cheaper rates. These newcomers can replace Sony’s products with their top-rated items. It’s a big threat to Sony right now.
Oversaturation of Markets:
Some brilliant smartphone companies force Sony to exit Southeast Asia after the demand for their products. Sony is still facing huge backlash and decline due to these newcomers. In this area, Sony has faced a continuous decrease.
Universal Epidemic:
Sony’s current profit for the first quarter of 2020 was decreased by 30 % which is alarming. But everyone is facing trouble and struggling with this global pandemic. This threat can damage the name and reputation of the brand worldwide.
Risks Created by Hackers:
In the filming sector, electronics, and gaming, there’s a danger of hacking by hackers. This thing can cost million of wounded and lawsuits. Recently, Sony Pictures has practiced on the extensive penalty of a violation.
Increasing Counterfeit:
The clone market stands at 3.3 % of world trade. These fake products can damage the sale of Sony’s premium products such as TVs, Mobile Phones, and Gaming Products.
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