Sony Corporation is one of the world biggest mobile communications company, founded in 1947, with its headquarters in Tokyo Japan. It does not operate independently but it is a parent company of several other subsidiaries in other parts of the world. Sony's competitors are Apple, Nokia 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.
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.
Table of Contents
1. Introduction
2. Future strategy
3. Market Entry Strategy
4. Substantive Growth Strategy
5. Limited Growth Strategy
6. Retrenchment Strategy
7. The Key Options Sony Corporation Could adopt with its Justification
8. Roles and responsibilities of Staff directly involved in Strategy implementation
Objectives and Core Themes
This report evaluates the strategic position of Sony Corporation within the global mobile communications industry to identify effective future growth and sustainability paths. It aims to determine how Sony can overcome current market competition by analyzing various grand strategies, resource allocation, and implementation frameworks.
- Analysis of market entry and competitive positioning strategies.
- Evaluation of diversification models using the Ansoff Matrix.
- Application of the BCG Growth-Share Matrix for business portfolio management.
- Strategic implementation roles and responsibilities within a corporate structure.
- Application of SMART objectives for strategic realization.
Excerpt from the Book
Retrenchment Strategy
This is a strategy that is used as the last resort. It is also known as the disinvestment strategy. It can only be used if all other strategies have been applied and could not work or if none of the strategies could work on that particular scenario. It involves turn around strategies, disinvestments and liquidation.
This strategy can be well explained by BCG Growth share matrix. The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's.
Summary of Chapters
Introduction: Provides an overview of Sony Corporation's history, current market position, and the scope of the competitive challenges it faces in the mobile communications sector.
Future strategy: Outlines the four fundamental business options—market entry, substantive growth, limited growth, and retrenchment—as potential grand strategies for Sony.
Market Entry Strategy: Explains various methods for business expansion, including mergers, acquisitions, strategic alliances, and licensing as ways to increase global market presence.
Substantive Growth Strategy: Discusses diversification through horizontal, vertical, and conglomerate integration to strengthen market position and profitability.
Limited Growth Strategy: Focuses on market penetration, product development, and innovation, primarily analyzed through the lens of the Igor Ansoff Matrix.
Retrenchment Strategy: Describes disinvestment and turnaround strategies for underperforming business units, utilizing the BCG Growth-Share Matrix as a diagnostic tool.
The Key Options Sony Corporation Could adopt with its Justification: Recommends that Sony prioritize market entry and retrenchment to improve competitiveness and shed non-profitable products.
Roles and responsibilities of Staff directly involved in Strategy implementation: Examines the three levels of strategy (corporate, business, operational) and the importance of aligning staff efforts with management's strategic vision.
Keywords
Sony Corporation, Strategic Planning, Market Entry Strategy, Substantive Growth, Limited Growth, Retrenchment Strategy, Diversification, Ansoff Matrix, BCG Growth-Share Matrix, Competitive Advantage, Corporate Strategy, Implementation, SMART Objectives, Business Management, Innovation
Frequently Asked Questions
What is the primary focus of this strategic report?
The report focuses on analyzing Sony Corporation's competitive position and recommending future strategies, specifically market entry and retrenchment, to help the company outperform its rivals.
What are the core strategic options discussed in the document?
The document covers four grand strategies: Market Entry, Substantive Growth, Limited Growth, and Retrenchment.
What is the main objective of the proposed strategy for Sony?
The primary goal is to ensure Sony maintains a competitive edge and achieves sustainable growth by identifying and divesting from underperforming assets while expanding through global alliances.
Which scientific or analytical models are used in the research?
The author utilizes the Igor Ansoff Matrix for diversification analysis and the BCG Growth-Share Matrix to evaluate portfolio management and disinvestment needs.
What topics are covered in the main section regarding implementation?
The main section details the hierarchy of strategies (corporate, business, functional), the human resources aspect of implementation, and the importance of using SMART objectives to track progress.
How is the term "Retrenchment Strategy" defined here?
It is defined as a last-resort strategy involving turn-around efforts, disinvestments, and liquidation, used when other growth strategies are either inapplicable or have failed.
Why does the author recommend that Sony focus on "Market Entry" specifically?
The author argues that in the global mobile communications industry, merging or acquiring other companies is necessary for Sony to increase its presence and expertise, as smaller-scale licensing or franchising are insufficient for a company of Sony's size.
How does the report suggest Sony should handle "Dog" products?
The report suggests using the BCG matrix to identify these low-growth, low-market-share products and advises that Sony should consider disinvesting from them to stop them from consuming unnecessary company resources.
- Quote paper
- Adams Kisilu (Author), 2014, Strategic Planning for Sony Corporation, Munich, GRIN Verlag, https://www.grin.com/document/293560
