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Pest Analysis

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Different factors affecting sony company:
“Analyse of the external environment could be assist by acronym PEST, which is standing for political, economical, sociocultural, and technological factors. It is also known as environmental scanning. PEST is useful tool to monitor and evaluate forces and factors affecting the company in long term” J Morrison (2002).
Political/legal environmental:
It is roles and regulation, which has been imposed by a stable government on the business.
On the other hand, these changes may expected from the government in the future by business.
Political factors of Sony can be changed at any time, which could affect business of the Sony at time of change. As well as instability in political situation of country will affect the business
Reduction in recession and credit crunch could cause Sony to speed up its trade; meanwhile same situation could happen for the competitors of Sony, which may affect Sony negatively. Therefore, Sony needs to be very careful to its innovation and idea generation.
Sony is globalized company so that changing in international law or trade restriction could affect the way in which Sony works, and Sony needs to follow the rules and regulations, that are imposed by the government. The terms legal always cannot come with term political because most of the time, by change in the politics of a country the legal terms and condition for business environment may remain the same. So that it could be named exceptionally, separate from political environments.
Economical factors:
The essencial factor by which growth of the economy could be assessed is economical factor.
It could cover around the major aspects such as unemployment, wages, rising in spending of consumers and which sectors of economy is growing which sectors are not. J Morrison(2002).
However the economic situation of Sony was reported not in good condition , cause of the economic shrunk.
Due to this, economic shrunk and credit crunch the exchange rate was affected which could be related to Sony because it is international business and it is the key point which need to be taken into consideration being an international business. certainly the price selection will effect also. Recently the economic situation of Sony got worst in japan cause of the earthquake, which hated japan. Sony reported that it has 110 employees at two offices in Tokyo without injuries during the tremor.
The northern part of japan hated by earthquake was huge responsible for supplying the electronics industries with components. At the same time, it affected the relationship of Sony with their suppliers. Now Sony focuses on replacement of the destroyed offices and keeping the relationship with their suppliers. http://news.softpedia.com/news/accessed on 24/03/11.
Social factors:
Even though Sony has gained reputation, cause of it is quality services and products they provided. Still needs to be well aware of the customer demand, good communication with the people, Changes in lifestyle of people, the increase on woman leaving work. Generally educational level of population, the extent of educational facilities for women, and taking part in business life. These all are the key factors which Sony needs to consider and must have social involvement in most needed things for the people such as infrastructure system. In the case of ignorance of these factors socially Sony will damage its image. J Mmorrison(2002) babette E and criag S. Fleisher analysis without paralysis FT Press (2008)

Social
There are 5 Sony Playstation trends, these are Social Networking, Pre-Ordering, Multiplayer, Online networking, and 'Sagas')
SocialNetworking: When releasing anything after the Playstation 2. Playstation research how many people liked to share their personal game achievements with others online. For example, If you had a good goal in fifa, you have the option to record it on the console, and upload it to your desired social networking platform.
Pre-Ordering: Playstation researched and realised that, when releasing new games and platforms, if they attached a bundle of games to go with the pre-order package more people would buy the product at starting retail price, instead of waiting for the price to go down.

Multiplayer:
Playstation researched that, games with the option to play with, and against their friends on the same console sold quicker and and had a high demand. This is because it creates a different atmosphere, and increases the interest for kids to stay inside and play games.
Online Networking:
Playstation realised that people wanted to play against people that they didn't know before, so playstation created the Playstation network, this created the online gaming community, where people could play against against people in different countries."Sagas"
Playstation releases saga packs which appeal to the large community of "hardcore" game enthusiasts. Sagas include games from the first version all the way to the last version with special packs of things to do with the game.

Technical
Sony TechnologicalUSP There is none because sony has been taking features from other products like the camera for the ps4 that came from the kniect from the xbox 360/1. They have the flick gaming style form the Iphone/ipad's. The only thing that might be the USP is the motion control they got they from the PSP Vita so that could be the USP.
Competitors
Xbox 1 (microsoft)

Each PS they made they made it smaller and thine. Like the PS3 to PS3 slime then to PS3 super slime
The first PS came out in December 3, 1994
PS2 came out in 2000
PSP came out in 2004
PS3 Came out in November 11,2006
PS3 slime came out in 2009
PSP Vita came out in
PS3 super slime came out in 2013
The PSP sold more then the PSP Vita because the customers didn't won't the same thing just with better graphics they wanted something better so that is why the original PSP sold more then the PSPV.

Playstation realised that people wanted to play against people that they didn't know before, so playstation created the Playstation network, this created the online gaming community, where people could play against against people in different countries."Sagas"
Playstation releases saga packs which appeal to the large community of "hardcore" game enthusiasts. Sagas include games from the first version all the way to the last version with special packs of things to do with the game.

Response to hacking
In 2011 Sony was hacked by a group called Anonymous. Anonymous attacked Sony for supporting SOPA (StopOnlinePiracyAct). Sony then received threats from Anonymous "Your continued support for SOPA will be your death warrant.

They were hacked again as the PS4 was launched. Sony shut down PSN for months to find out what happened and to make sure it would not happen again. Again Sony spent billions fixing the problem. A lot of peoples information was lost for example their credit card details. In the end Sony helped their customers get new credit card details.

PESTLE Analysis
First, a PESTLE analysis has been carried out to assess the external market Sony operates in. Political Factors:
•Japan‟s current transition from single to double party system abstracts resultingimplications for Japan-based multinational corporations, in terms of future legislation,government & trading policies.

Economic Factors:
•Reduction in disposable income resulting from recession has had a negative effect onconsumer electronics sales worldwide, increasing price competition.
•As a result of overwhelming public debt of 225.8% (Central Intelligence Agency,2011) along with deflation & frail public demand, Japan faces global pressure to cutpublic debt over recent months. Ratings agencies have warned Japan of possiblereduction in credit rating (The Economic Times).
•The effect of changes in currency exchange rates has been unfavourable for Sony2007 onwards, stripping away billions of yen (Sony, 2010) and such unfavourablecurrency exchange rate is deterring investors.

Social Factors
•Sony‟s largest market is Japan which accounts for 43% of sales (Sony, 2010),however, it is an ageing population, with a median age of 44.8 years (CentralIntelligence Agency, 2011).
•Loss of trust from customers following security attack & failure to notify immediately has tarnished Sony‟s brand image.

Technological Factors
•Consumers are moving toward multi-functional devices, meaning the demand fordedicated devices is reducing.
•The market for 3D related technologies is growing rapidly.
•Industry-wide movement toward networked products & services and cloudcomputing.

Legal Factors
•Age and content restrictions from international regulatory bodies (USK &PEGI).
•EU warnings over privacy issues following security breach on PSN network & SonyOnline Entertainment properties. (CNET, 2011)
•US parties press for legislation of uniform national security and data breach standardsfor notification.

Environmental Factors
•Some of Sony‟s manufacturing activities were suspended after recent tsunami (Sony),resulting in share price drop of 9% (Yahoo Finance)
.

•Regulations on the impact of electronic trash by Restriction of Hazardous Substancesand Waste Electrical and Electronic Directive. The additional procedures andcertification required as a consequence of these regulations have been increasingcosts, and affecting supply chains.

Company Details: Sony Corporation | | Sony Headquarters at Sony City in Minato, Tokyo | Native name | ソニー株式会社 | Type | Public | Traded as | TYO: 6758
NYSE: SNE | Industry | Conglomerate | Founded | Tokyo, Japan (7 May 1946)[1] | Founder | Masaru Ibuka
Akio Morita | Headquarters | Minato, Tokyo, Japan | Number of locations | Surrey (European Headquarters)
Yokohama
Toyama
Osaka
New York City
Mount Laurel
Teaneck
Huntington Station
Cranston
Philadelphia
King of Prussia
Pottstown
Edison
Berlin | Area served | Worldwide | Key people | Osamu Nagayama
(Chairman of the Board)
Kazuo Hirai
(President and CEO) | Products | Consumer electronics
Semiconductors
Video games
Media/Entertainment
Computer hardware
Telecom equipment | Services | Financial services, insurance, banking, credit finance and advertising agency | Revenue | ¥7.767 trillion (2014)[2] | Operating income | ¥26.49 billion (2014)[2] | Net income | ¥-128.36 billion (2014)[2] | Total assets | ¥15.333 trillion (2014)[2] | Total equity | ¥2.258 trillion (2014)[2] | Number of employees | 140,900 (31 March 2014)[1] | Subsidiaries | List of subsidiaries | Website | Official website |

Sony's Quality Management System Framework
(Forbes Global, August 12, 2014)
Sony recently reconfigured its quality management system by reviewing quality management mechanisms across all processes, from development, planning, design and manufacturing through to sales and service. This has included redefining the roles, responsibilities and authority of those responsible for product and service quality and establishing guidelines. * Framework of Sony's Quality Management System

Company profile of SONY (According to Forbes Global, August 12, 2014) Sony Corp. is engaged in the development, design, manufacture, and sale of electronic equipment, instruments, devices, game consoles, and software for consumers, professionals, and industrial markets. Its operations are carried out through the following segments: Consumer Products and Service; Professional, Device and Solutions; Pictures; Music; Financial Services; and Other. The Consumer Products and Service segment includes Sony Computer Entertainment, Sony Network Entertainment, VAIO & Mobile Business Group, Personal Imaging and Sound Business Group, and Home Entertainment Business Group. The Professional, Device and Solutions Group segment includes Professional Solutions Group, Device Solutions Business Group, and Semiconductor Business Group. The Pictures segment includes planning, production, and distribution of films and television programs. The Music segment includes planning, production, manufacture, and sale of music software; and production and sale of animation works. The Financial Service segment includes life insurance, damage insurance, banking, and credit finance businesses. The Other segment includes Blu-ray disc, DVD, and CD; Network Service-related Business, advertising agency business, and others. The company was founded by Akio Morita and Masaru Ibuka on May 7, 1946 and is headquartered in Tokyo, Japan.

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