Free Essay

Sony Internal Analysis

In: Business and Management

Submitted By kugooo88
Words 726
Pages 3
Division: Mobile Products & Communications

Overview
Sony Ericsson (Sony Mobile) is a joint venture owned equally by the telecommunications leader Ericsson and Sony corporation- the consumer electronics powerhouse. It was founded on October 1, 1987 as a joint venture between Sony and the Swedish telecommunications equipment company Ericsson, under the name Sony Ericsson. (Wikimedia)
VRIO Framework
As the fourth-large smartphone manufacturer, Sony Mobile’s technological resources are very valuable and inimitable. The communications technology expertise and knowhow accumulated through its experience in the mobile phone industry, to launch new mobile products and establish new business models. Additionally, by integrating operations across its entire mobile product lineup, Sony aims to achieve further efficiencies and optimization (Sony Website). Technologically, Sony Mobile is more advanced in producing consumer electronics products than its competitors.
Technological Resources also support the innovation resources. Innovation is the most important thing for the current mobile markets and that is hard to imitate and valuable. There are so many competitors, and so many new products come out every year. If Sony Mobile wants to against their competitors, they should have enough innovation to create new product.
The Smartphone market has lot of competitors, and potential competitors, but some competitors may lose their competitive advantages when they cannot follow the market or they lack of innovation or technological resources. For example, Google bought the Motorola mobile years ago. Motorola was the mean competitor in the mobile market, but after Apple, Samsung, HTC and other mobile company into the mobile market, but in the end Motorola mobile lost its competitive advantages and sold to Google. This industry is very attractive, so there are so many potential competitors want to enter this industry, like Google and Lenovo. But it’s not easy to get competitive advantages for new competitors. For few months ago, Google resold Motorola mobile to Lenovo, only for 2.91 billion dollars. If Sony can have strong technological resources and get grate innovation, Sony Mobile may lead the mobile market into a new direction. In short, Sony Mobile’s strength is about the ability to leverage on technologies well and ahead of its competitors to create innovative and high quality products for its customers so as to increase sales and revenues.

Value Chain
Inbound Logistics: Low cost of production is the big competition advantage. Sony Mobile shifted their manufactory to low cost countries such as China to take advantage on the cheaper labor cost. The ability to manage the complex and geographically dispersed inbound logistics activities is certainly Sony’s strength.
Operations: Sony Mobile has successfully integrated its smartphone business with Sony's personal computer, tablet and hand-held game businesses, sharing research and development, reducing marketing and operational costs. Sony Mobile comes under the Mobile Communications category, which contributed 60.1% of the total revenues for the overall MP&C segment (EBSCO). Generally, Sony Mobile has been able to manage its businesses well and hence is able to achieve successes with its products.
Outbound Logistics: Sony Mobile is well connected to the distribution networks that every country possesses. In fact, to ensure that Sony’s products and services are delivered and reached their destinations on time, Sony has invested heavily to automate parts of the outbound logistics function to track sales orders, movement of products and payments.
Marketing and Sales: Sony Mobile’s marketing strategy is to position itself as an innovator and a high quality products makers which enable it to sell its products at a higher premium than its competitors.
Service: Sony Mobile has established many service related activities that are designed to enhance customer satisfaction – that is the feeling that a product or service has met the customer expectation. They have online services that convenience for customers if they get problem can solve it online immediately. Whether customers need technical support, services, or protection for their favorite Sony product, Sony's got covered (Premium Services).

Works Cited
"Sony Mobile Communications." Wikipedia. Wikimedia Foundation, 19 Mar. 2014. Web. 20 Mar. 2014.

EBSCO Publishing (Firm). "Sony Ericsson Mobile Communications AB SWOT Analysis." Sony Ericsson Mobile Communications AB SWOT AnalysisPrint.

"Sony Corporation Global Headquarters." Sony Global. N.p., n.d. Web. 20 Mar. 2014. .

Kastrenakes, Jacob. "Google Sells Motorola to Lenovo for $2.91 Billion." The Verge. N.p., 29 Jan. 2014. Web. 20 Mar. 2014.

"Premium Services." - Sony Standard US Sony Store. N.p., n.d. Web. 20 Mar. 2014.

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