Sony is going to start a new business in Saudi Arabia as a part of its brand expansion. However, the purpose of this paper is to discuss the background of the company, internal strengths and weaknesses, external opportunities and threats of the new projects of Sony and Michael Porter’s Five Generic Strategies and environmental situation analysis.
Sony Corporation was formed in 1946 with center of operations in Japan and this company is the world’s largest media conglomerate, one of the biggest manufacturers of the electronics items and worldwide top 20 semiconductors leader of sales, which generates revenue by more than ?7,214.0 billion.
Moreover, Sony uses complicated organizational structure in order to control the functions of its outlets and according to the structure, Howard Stringer is the chairperson, CEO, and head of company amongst delegate business decision-making officials of Sony, whilst Ryoji-Chubachi is the vice-chairman, Kazuo-Hirai is the administrative deputy-president, etc.
Before starting a new telecommunication business in Saudi Arabia, it is important for Sony to focus on its current position and background to help the concerned strategy makers to designate the way in which it would be best for the company to accomplish its new business project. In order to do so, it is necessary to consider its financial position, product lines, competitive forces, as well as the performance of Sony in stock market.
It is arguable that the firm has categorized into seven major production departments, as the main manufactured items of the firm comprises auditory, video, TV, ICT devices, electrical apparatuses, and semi conductors; the following table shows the five years financial overview generated by each of the production departments of the firm for a better understanding of its financial background –
Factors Determining the Financial PositionYr – 03/ 2008Yr – 03/ 2009Yr – 03/ 2010Yr – 03/ 2011
Revenues –? 8,201,839 m? 7,110,053 m? 6,293,005 m? 6,304,401 m
Total Revenues –? 8,871,414 m? 7,729,993 m? 7,213,998 m? 7,181,273 m
Cost of Goods-Sold? 6,278,075 m? 5,660,504 m? 4,872,042 m? 4,826,612 m
Gross-Profit? 2,063,033 m? 1,521,664 m? 1,670,406 m? 1,678,873 m
Total General-sales and Admin-Expenses? 1,707,650 m? 1,629,705 m? 1,470,901 m? 1,464,063 m
Other Operating-Expenses? 1,707,650 m? 1,629,705 m? 1,470,901 m? 1,464,063 m
Operating-Income? 355,383 m? – 108,041 m? 199,505 m? 214,810 m
Net Interest-Expense? 411,341 m? – 2,059 m? – 9,314 m? – 12,126 m
Earnings of continued-Operations? 363,656 m? – 102,214 m? 12,954 m? – 220,326 m
Net-Income? 369,435 m? – 98,938 m? – 40,802 m? – 259,585 m