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Sony Case Study Analysis

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Sony Case Study

Sony is an electronic company which was established in the year 1946 in Japan. It was started by two employees, Masaru Ibuka and Akio Morita who helped the company to reach a world level platform. The headquarters of the company is Kōnan, Minato, Tokyo. It is one of the largest manufacturers of electronic products like televisions etc., largest company for video games consoles and also the largest publisher of video games. With the help of Sony Entertainment Inc., it also became one of the largest music companies. Sony has a market share of 55% in the market of image sensors. Sony, one of the most valuable Japanese firms in terms of operating profit and market capitalization, was rated at over $90 billion as of July 2020. It was also named the most cash-rich Japanese firm at the time, having net cash reserves of 1.8 trillion yen. Examining the company's internal and external settings for potential opportunities or associated hurdles that could contribute in the creation of overall goals is crucial. The goal of the case study is to create a SWOT and a PESTLE analysis of the organization in order to better understand and gain insights into it.

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SWOT Analysis 

The SWOT analysis is a well-known method for assessing both the internal and external environments. Sony would be evaluated on a number of factors, including strengths, weaknesses, opportunities, and threats. This will therefore help the leaders of Sony and the analysts to perform better and improve their scope of development as well as outcome. You can get study help.


Sony offers a diverse selection of items. It is a Japanese company that has built a solid name over the years by producing high-quality items. It has a positive brand image, and consumers are more likely to trust it. Consumer gadgets, films, video, computer hardware, games, semiconductors, TV shows, music, and telecommunications equipment are all part of the brand. Sony is a well-known and well-recognized brand on a global scale. Sony has evolved to build a sharp brand reputation in the electronic arena, having produced many high-quality items and been recognized on a global scale. Even though the products are of high quality and fulfills all of the customer's requirements, each product requires after-sales support. Sony's after-sales services are exceptional and meet or exceed client expectations. Get Sony case study help at


The brand's price is a major flaw because it is extremely costly. Many individuals around the world are unable to afford Sony's products due to their exorbitant cost. As a result, people choose to switch to a less expensive brand, and Sony loses a lot of customers as a result. Although Sony has a wide range of products, it lacks the product diversity of its competitors. As a result, the company's overall profit does not improve. Promotion is necessary for any brand to prosper. Sony believes in recognizing its own quality, but does not engage in marketing. As this brand does not participate in many promotional activities, this is a flaw.


Sony has previously concentrated on entertainment items such as televisions, music players and gaming consoles. Many other well-known technology brands have expanded into new markets, such as home appliances. Thus, providing the opportunities to explore these weaker markets and expand also introducing variation in products. Sony has spent a significant amount of money on the web platform in recent years. Sony has witnessed an increase in sales after investing so much in the new sales channel. In the upcoming years, the corporation can leverage big data analytics to have a deeper understanding of its customers and better service their needs. You can use the plagiarism checker tool to check the plagiarism.


Sony's market share has been sapped by a slew of low-cost competitors, and this could become a major issue in the near future. Many budget manufacturers, such as Xiaomi and Huawei, provide a wide range of high-quality items at affordable prices. Considering Sony is a Japanese company with operations all over the world, it faces some difficulties due to fluctuations in foreign exchange rates. This is a significant threat to Sony and the brand should keep an eye on currency rate changes. The stream of new products does not occur on a constant basis, resulting in sales fluctuations throughout time. 

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PESTLE Analysis 

The words PESTLE indicates Political, Economic, Social, technological, Legal and Environmental. PESTLE Analysis is an essential marketing idea that can help an organization evaluate the environmental changes and establish an operational program for the launch of any service, new project, or product. It is seen as a framework that will assist in the improvement of the environment, thus incorporating correct planning and conceptions of any organization. If you want to know how we work, take a look at our project management assignment who helps in managing your marketing analysis.


Political concerns can have a significant and lasting impact on any worldwide brand's business. The political climate is not the same all over the world, and there is a strong link between a region's political and economic environments. Every firm is influenced by political and governmental factors. Economic stability is linked to political stability.  If the economy is in crisis, it's not unreasonable to infer those rules and regulations are also not in good state. Because SONY is a global brand with operations in multiple countries, the political climate in each of those nations has a direct impact on the company's success. For example, any instability in the politics of China will have a direct consequence on the supply chain of Sony and thus trouble in the distribution of Sony products in China. 


Economic considerations always have a direct and profound impact on businesses, particularly those that are worldwide distributed. The Sony corporation deals with products from four different categories which include the electronics, music, financial services and motion pictures. However, most of the products of Sony are luxury products. Therefore, in countries with economic instability or with high unemployment rates, the sale of Sony products would not be high, because in such countries luxury products are not a priority. This means that SONY's entertainment items rely on stable or developing economies to sell.  Profits for SONY are expected to be lower in nations where the economy is unreliable, such as Russia.


In the context of international commerce, socio-cultural variables are also significant. Thousands of societies and cultures were brought together as the flood of globalization swept through, resulting in various unique combinations. When social trends shift, they usher in even more significant shifts. In countries where the economy is high, the requirement of Sony luxury products increases and so do the need varieties of the consumers. In such cases, people are willing to spend more on entertainment like video games and music. In every country or society, the choice of entertainment differs based on cultural values and trends in the country. Therefore, society and global trends should be considered while designing products for the people thus, tailoring the services and marketing as per the customer needs. This has an impact on how companies sell themselves. SONY spends a significant amount of money on marketing. It has developed numerous tactics that suit the local cultures and preferences from market to market and region to area.


Technological advancements are occurring at a faster rate in the twenty-first century, resulting in more significant changes. New technology emerges, rendering older ones obsolete. SONY has strengthened its competitive position by investing in research and development and production capability. Companies are investing in technology in order to have a stronger relationship with their customers and expand their customer base. The need for greater technology, whether in marketing, sales, or customer service, has developed, and this has influenced the degree of competitiveness among organizations. Businesses and their competitors are affected by a variety of technological issues. In truth, data and technology are becoming increasingly crucial in the economic world.


The importance of legislation in the corporate world is generally understood. Businesses are expected to comply with a number of laws, including labor restrictions, environmental regulations, and taxes. Companies that operate on a global scale may find the situation particularly challenging. The legal system ranges from one country to the next and from one market to the next. Local legal and regulatory obstacles, such as labor rules and labor union agreements, can make it difficult for large corporations like SONY to operate. Legal factors therefore, can have a significant impact on enterprises and their profitability in this way. Laws and regulations are subject to change at any time. Taxes might rise dramatically in a single day. Alternatively, operational costs could soar. So, even if SONY takes all precautions, they may still face legal action. Failure to follow these rules could result in a lawsuit or a significant loss of profit.


In the twenty-first century, big firms have made sustainability a top concern. It's not only about lowering your carbon footprint; it's also about saving the environment for the common good. Companies with a no or little amount of carbon footprint engage in environmental sustainability. In addition to environmentally sustainable products Sony can also increase the opportunities of recycling facilities. This external aspect boosts Sony's chances of resolving product end-of-life issues. Customers are also attracted to such products thus improving the sales. 

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