Swot Analysis Of Sony

Primary Activities

In-bound logistics:

Sony has a complex logistic system in place. As the company expanded, Sony outsourced the manufacturing of some of its product components to 3rd parties such as Flextronics and Solectron. This helped Sony to focus on its core businesses and competencies. In an attempt to lower its costs, Sony shut down some of its manufacturing facilities and moved production to low cost countries like China. Successfully managing the complex and geographically distributed logistics system is Sony’s strength.

Operations:

Total annual production of Sony is spread across different geographies with the percentages as follows: Japan(50%), China( less than 10%), rest of Asia (more than 10%), U.S. and Europe( 25%). Utilizing

To keep a track on the sales orders and product movement, Sony invested in automating parts of the out-bound logistics function. This ensured timely delivery of products and services.

In 2002, magazines such as InfoWorld and PC Magazine reported that customers felt that Sony’s staff were well trained to handle all operations and services and their products were best in the world. The ability of Sony to train employees and business partners to effectively manage their out-bound logistics system is definitely a strength.

Marketing and Sales:

Positioning itself as an innovator and manufacturer of high quality products has been Sony’s marketing strategy. This enabled it to sell its products at a premium compared to its competitors. To back up this strategy, the company has invested in massive marketing projects accompanying the product launches. Trinitron and WEGA are examples of these marketing

For example, it acquired US based CBS records and Columbia Pictures in 1988 and 1989 which were later renamed to Sony Music Entertainment and Sony Pictures Entertainment. These turned out to be huge successes and were two of the world’s two largest content providers. Even in the game industry, it competed with successful existent players like Nintendo and Sega directly. Later, it dominated the market. In 2001, it entered into a joint agreement with Ericcson to manufacture mobile phones. Sony owned 55 manufacturing plants by 2003, in addition to the 12 home plants in Japan and radio factories in Ireland. All these physical resources provide Sony with a competitive advantage which helps create great