Question

Do an analysis on the external environment surrounding Sony Corporation, including a PEST Analysis, Analysis of Porter's Five Competitive Forces, and Analysis of Core Competencies.
PEST Analysis: Political, Economic, Social, and Technological Factors Affecting Sony.
Analysis of Porter's Five Competitive Forces: Competitive Rivalry, Bargaining Power of Buyers, Bargaining Power of Suppliers, Threat of Substitutes, and Threat of New Entrants.
Analysis of Core Competencies: Core competencies needed to be competitive in the industry/market.

Answer 1

PEST_

Political environment: Political environment in most of the nations and the economic conditions are good for business deals. most of the nations are doing good business deals with Japan, and from its inception, SONY have achieved many mile stones among the customers. Still it is one of the best international brand among the customers. The economical aspects like tax structures, tarrifs, economic laws all are acceptable way to SONY to be stand at top in the market.

Economic Environment: in this we study the growth prospects of nations or people interms of interest rates, inflation rates, exchange rates etc. Most of the nations are having positive interest rates, with stable exange rates. It is a good sign to SONY to recapture its market position.

Social environment: factors such as population growth, health consiousness, age factors and so on comes under this aspect. Most of the people transformed as technical savys and they are managing most of the technologies easily. By using these, SONY can develop more new models to attract more customers and at the same time to retain existing customers.

Technological environment: SONY was one of the technology leader in the market. But later, after entry of many players like Samsung, Apple, etc, SONY lost its market share in many segments. SONY is not able make the customers to trust its products, particularly with high changing technology conditions. It is failing the catch the expectations of customers than its competitors and lost its market to competitors. It is spending huge amounts on R&D, automation, AI and so on, but not able to introduce unique models to capture market leadership.

Porter's five forces:
competitive rivalry: Existing competition is much high in electronic product market. Every one is fighting with other player in various segments like low cost, high features, less maintanance, service offering and so on. Hence the competition is much high in existing market to SONY.

Bargaining power of Buyers: Because of many players existed in the market, particularly small players who offering high end products at less cost, caused SONY to lost its market. Players like Micromax, Xiomi, MI, and others are producing many models with low cost and high features, the same is lacking by SONY. Hence, the bargaining power of buyers is much higher in this segment.

Bargaining power of suppliers: is low, because of more alternative suppliers are available in the market.

Threat of substitutes: there are many players existed in the market and competition is too high.

Threat of new entrants: many of the new players are entering into this market and capturing market share in different segments.

core competencies: still SONY have one greatest advantage in the market. It is the brand name, most of the people knows SONY- the high end technology brand name. It is the core strength, if it is able to focus on other stage segment of customers, it will be grown faster than eariler levels. As of now it is focused and concerned with high end customers only and producing products for them. They need to step down and also concentrates the middle income level people and offer products. Then SONY once again becomes market leader in this segment.