Milestone #1
Nakira Riddick
Regent University
ECON 230 - Macroeconomics
Dr. Jeff Bajah
March 26, 2022
Sony’s Overview
In Tokyo, Japan, the Sony Group Corporation, created by Kenichiro Yoshida, has a base headquarters located in New York, known as the Sony Corporation of America. Sony's paramount U.S Businesses include Sony Electronics Inc., Sony Interactive Entertainment LLC., Sony Pictures Entertainment Inc., Sony Music Entertainment, and Sony Music Publishing. The corporation's annual sales have approximately USD 76.67 billion for the fiscal year concluded March 31, 2020, employing about 114,400.
Sonys Electronics: Located in San Diego, deals with conducting provider of audio/video electronics and information technology products for the consumer and professional markets. It includes research and development, marketing, distribution, engineering, sales, and customer services.
Sony Pictures Entertainment: encompasses motion picture production, acquisition, and distribution; television production, acquisition, and distribution; television networks; digital content creation and distribution; studio facilities; and development of new entertainment products, services, and technologies.
Sony Music Entertainment/Music Publishing: Global record company that features local and international recording artists from various labels such as Columbia, RCA, Epic, Sony Music Nashville, and Sony Classical. Sony is the ultimate global music publisher. Home to world-class songwriters, legendary catalogs, and industry-leading synchronization licensing and production music businesses, including Aretha Franklin, Micheal Jackson, Beyonce, and many other artists.
Sony Interactive Entertainment LLC: Is responsible for the continual growth of the Playstation that thrives in the United States, Canada, and Latin America.
Sony’s Comparative Advantage
Based on Micheal Porter's model, Sony Corporation generally has a generic approach. Sony revises its intensive development strategies to grow the business despite frequent market modifications. Sony's case exemplifies an effective execution of a generic system and intensive growth strategies properly developed based on business essentials and market conditions as one of the most prominent companies. Sony Corporation integrates features that make its products look attractive and affordable. For example, the uniqueness of the Playstations. Sony must continue innovating and reimagining products to preserve a competitive advantage against Nintendo and Microsoft. Sony Corporation has utilized Market Penetration (Primary), Product Development (Secondary), Market Development, and Diversification.
Sony’s Supply & Demand
Sony seeks to choose components and materials from diverse suppliers to produce with "high quality, competitive prices, and a stable supply." (18). In selecting suppliers, Sony looks to sustain suitable financial and operating bases, formulate unique technologies to supply outstanding and exciting products to customers, keep expenses low, operate e-commerce, and maintain a competitive advantage. On the software side, Sony takes software protection infringements seriously and does everything possible to prevent security vulnerabilities from transpiring in their software. Sony’s philosophy concentrates on “fair business practice, transparency and equal opportunity,”; collaborative connections with suppliers, and a green supply chain. Sony partners in a joint venture with Samsung to maintain expenditures for the television segments. A conceivable buyer’s capacity to acquire information is effortless with online reviews of products. Sony attempts to disentangle its development with adequate technology and graphics, but products in these industries are typically reasonably undifferentiated. This predicament in differentiation leaves price elasticity high and buyer power high. (19).
America and Japan’s GDP
The top two countries with the most Sony’s locations include the United States and Japan. In the United States, “The unit sales of the Sony PlayStation 5 gaming consoles in the United States are on the rise as more of the devices become available to consumers. In 2021, 4.3 million PlayStation 5 units were sold in the United States.” while Japan’s was 942,798 units.
Factors Affecting McDonald’s Profitability
Many economic factors can affect the profitability of Sony. Sony must overpower increasingly intense competitors, especially in the Electronics and Game components. Sony must successfully address frequent product and service openings and transitions to remain competitive and promote customer demand. Sony is subject to competition from corporations that may be more technological or have more substantial resources. Sony’s sales and profitability are susceptible to economic, employment, and other movements in Sony’s significant demands. Sony’s investments in research and development may not generate the derivatives expected. Sony may not be able to recoup the capital expenses or investments it makes to increase production capability. Sony’s business restructuring and modification actions are costly and may not attain their objectives.
References
Dess, G. G., & Davis, P. S. (1984). Porter's (1980) generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal, 27(3), 467-488.
Glazer, R. (1999). Competitive Advantage Through Information-Intensive Strategies. Handbook of Services Marketing and Management, 409.
Lah, K. (2012, February 2). Sony expects nearly $3 billion loss. CNN. Retrieved March 27, 2022, from http://edition.cnn.com/2012/02/02/business/sony-earnings/index.html
Meyer, P. (2017, March 1). Sony's Generic Strategy & Intensive Growth Strategies. Panmore Institute. Retrieved March 27, 2022, from http://panmore.com/sony-generic-strategy-intensive-growth-strategies
Sony Corporation of America businesses – operating companies. Sony Corporation of America Businesses – Operating Companies. (n.d.). Retrieved March 26, 2022, from https://www.sony.com/en_us/SCA/who-we-are/overview.html#
SONY CORPORATION. Sony Corporation. (n.d.). Retrieved March 27, 2022, from https://www.sec.gov/Archives/edgar/data/313838/000095012309016105/k02095e20vf.htm
Sony Group Portal - Sustainability Reporting. (n.d.). Retrieved March 27, 2022, from https://www.sony.com/en/SonyInfo/csr_report/
Hi Nakira,
Good post. I was intrigued to read your post because the corporation I chose (Samsung) rivals Sony and is also one of its suppliers, so I wanted to read more about it. PlayStation does have a strong foothold in the American market, and there is always great demand and a backlog of preorders with new releases; both children and adults desire to have and use them. Sony has lucrative innovations in a few areas including design and software development. Ray tracing is a lighting technique that brings an extra level of realism. The article speaks on Sony’s Arnold rendering software and the use of ray tracing in rendering software. It is geared toward artists, creators, Animators, game developers, and film production. This type of software enables the creation of a more flawless-looking imagery and film, one of much greater quality that is more valued and profitable for Sony Pictures and others. “… the rendering landscape is quite competitive and our studio continues to invest in pushing the boundaries of image quality and performance. To this end, we continually investigate new hardware architectures (wider SIMD on CPUs, evolving GPU capabilities, etc.)” (Kulla et al., 2018, p. 16).
Blessings!
References
Kulla, C., Conty, A., Stein, C., & Gritz, L. (2018). Sony pictures imageworks arnold. ACM Transactions on Graphics, 37(3), 1-18. https://doi.org/10.1145/3180495