This diversification helps to minimize the impact of adverse conditions that may arise in any one geographic region.
Excellent technology and a rich heritage of technological expertise
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In 2012, Sony led the movie, television and music industries with 21 Academy Award, 25 Golden Globe and 78 Grammar nominations. Sony has brought the world such acclaimed movies as "The Amazing Spider-Man," "Men in Black 3" and "The Social Network" and produces hit television shows like "Breaking Bad," "The Dry. Oz Show," "Jeopardy! " and "Wheel of Fortune. "
Sony music artists include Adele, Michael Jackson, Bruce Springiness, Paul Simon, Usher and Kenny Cheney.
And, the Sony Entertainment Network is the ultimate destination for digital music, movies, television programs and games delivered through the Palpitation Network and the Music
Unlimited and Video Unlimited services.
The high cost of media production, especially in its television business, has affected the company's pricing strategy.
Its television business has lost an equivalent of $6.
3 billion for eight years in a row. It's also losing market share to manufacturers, such as LEG and Samsung.
While diversifying into too many business segments, the consumer electronics giant has shifted its focus from its core competency making great consumer-electronic products.
This has resulted in a distortion in Sonny's brand. Apple, which is also in the consumer electronics space, has managed to focus on Just few products, build competency, and make them incredibly successful.
Joint Ventures and Strategic Acquisitions Sony benefits from the flexibility to enter into key Join ventures and execute key corporate acquisitions. For example, established a Joint venture project with Sharp to produce and sell large-sized LCD panels and modules.
Another example includes its alliance with Twain's Hon.. Hay Precision Industry for the production of LCD TV's. Among recent acquisitions are the purchase of a TFTP liquid crystal display (LCD) business from Epsom Imaging Devices and Convergent Media Systems, which makes Sony SWOT By Silversmith advantage of its movie and music business along with its experience in the gaming space to deliver value-added content to support and integrate its product line. It has talked about doing this with a four-screen strategy, which looks like a good concept.
Strong Positioning in Emerging Economies Sony is firmly entrenched in the so-called BRICK economies (Brazil, Russia, India and China). These regions are emerging markets and represent over 40% of the worlds' population.
The firm plans on following its model of success experienced in India where it emphasized its television film, and music product content.
The company has goal of doubling its revenues in the BRICK markets.
The Continued Economic Slump The negative economic conditions in The United States, Japan and Europe have had a disastrous impact on Sony.
The company receives approximately 74% of its revenues from these markets.
As the economic slump lingers, consumer confidence remains low and Sony has felt the impact in decreased revenues.
Sony leadership has acknowledged that the downturn exposed weaknesses and vulnerabilities in the firm that have needed addressing for some time
Impact of Strong Japanese Yen Sony is vulnerable to fluctuations in foreign currency exchange rates and exposed to allocations in the value of the Japanese yen, the US dollar and the Euro.
Recently, the Japanese Yen appreciated significantly against the US dollar and Euro. A stronger yen makes Sonny's products appear expensive in comparison and cuts into the value of overseas earnings. The firm acknowledges the need to implements effective hedging strategies to counter foreign exchange translation effects. The Impact of the Black Market Smuggled goods and counterfeit products have really plagued the electronics manufacturing industry in recent times. Counterfeit goods are projected to double to 8% of total world trade by 2010.
In addition, China's growing share of electronics production represents an increase in the number of potential counterfeit products in the market. These knockoffs, although cheaper and of less quality still the potential to divert revenues from Sony. Sony faces price competition from competitors such as Samsung and LEG, who are gaining traction with lower-cost products such as televisions and mobile devices. Sonny's online network faces threats from hackers. The company's Palpitation network was hacked, resulting in leakage of customer information, such as credit-card data.
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