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Sony Corporation’s Business Strategy

Updated on December 10, 2014

Sony is an electronics focused company that is based in Tokyo, Japan. The electronic business line includes motion entertainment and music. Among the companies’ high tech brands include Bravia television, Cyber Shot, Alpha DSLR, NEX cameras, Handycam camcorder, Walkman music player, Sony Tablet and Reader digital book. In the IT sector, the company is recognised for products such as VAIO PC, XDCAM HD Systems, CineAlta, Betacam and VTR. Additionally, it is also considered being the inventor of CD, DVD, super Audio CDs and also the Blue ray discs. The continual development of its play station consoles is also a mark on its high-tech up gradation (Sony Corporation).

The purpose of this hub is to evaluate the domestic and international business strategy of Sony Corporation, and the factors that have made this strategy successful.

Sony’s Domestic and International Marketing Strategy

The same way Sony is dominating its domestic marketing in Japan, it has also come to be spread in various parts of the world. However, the type of marketing strategy employed in specific market segmentation is not the same in domestic and international markets. This owes to the fact that each nation has different policies, regulations and economic conditions that necessitates the adoption of different strategies, to align with the specific market. In both its domestic and foreign markets, Sony deploys a strategy to increase the sales, revenues, and win the customer loyalty. In essence, Sony uses different marketing strategies with regard to the specific market situation (Bilton).

In an endeavor to make good relationship with clients, the corporation has structured itself for a worldwide impact whenever possible. There are three Sony divisions in America, Asia and Europe. In Asia, the head quarter is placed at Tokyo, Japan. In USA, the head quarter is at the Foster City while in Europe, the head office is at London, UK. The corporation has specialized itself into different subsidiaries in its entertainment products so as to satisfy their customers’ needs. These subsidiaries are the motion picture industry, music sector, financial services and computer entertainment. This adaptation ensures that the company has a huge market base, at home and abroad, which will give her competitive advantage against her competitors (Bilton34).

Sony also utilizes the technology such as the internet in interacting with the clients. In an attempt to ensure up-to-date information are conveyed to clients with regard to the company’s products and operations, Sony undertakes regular updates of its website so as to incorporate the most recent information with regard to manuals and software and also on how to use the product. There are also Sony sites in the net, which endeavor to provide FAQs and troubleshooting services to help customers with queries. The company’s websites are rated among the best in terms of offering customer support assistance (Akio).

Presently, Sony boasts of having around 5,900 customer service centers distributed around the world. These include authorized and unauthorized service stations. In order to make sure that customers are attended to promptly, the company endeavors to improve its service centers in order to create a competitive advantage against other similar corporations. The many repair centers and service stations in Japan and other parts of the world are meant to shorten times and cost effectiveness on repair on Sony items. This aims at creating customer satisfaction around the world (Sony Corporation2).

Use of Common Payment Method

The payment method preferred by Sony Corporation in its international transactions is the international credit card. This card is given to users as a payment method for their goods and services. The cardholder can pay for the goods or services and pay for them later. One of the benefits of this card is that it establishes a revolving account and offers credit line to consumers who can also borrow money using the card. International debit cards are recognized and identified in many countries around the world. This is another advantage for this service. The cards make shopping of goods and services to be easier and cash can be withdrawn from the ATMs. One of the chief disadvantage for this payment method however is that certain countries have no security regarding these international debt card holders. There have been incidences where certain devices have been used to steal the PINs of these cards and therefore stilling money from the users (Clark85).

Common Recruitment Process

Sony Corporation constantly endeavors to offer top of the range products and services and enhanced customer experience in their products and services. However, they do understand that the ability of securing and fostering talented workers is depended upon on their labor relations and recruitment method. Their efficiency and productivity depends on employee personalities, values and expertise irrespective of the culture, nationality, age, gender or physical factors. In their recruitment of personnel and managerial staff, the aspect of inclusion and diversity always guides the company in recruiting from various backgrounds. They believe diversity as being essential in instilling a favorable climate in this corporation. It is the managerial staff together with employees, which drive the company’s dynamic development and growth. Therefore, the company regards the development of its managerial staff and employees highly in its managerial aspect. As such, it strives to motivate its workers by offering them on the job training opportunities and making them access various programs (Sony3).

Conclusion and Recommendation

Sony is Unique in the sense that it is capable of penetrating both its domestic and global markets and stands itself against other large competitors. The corporation has also a good reputation for being a good and quality maker of audiovisual electronics as well as the developer of information technology not only in Japan and US, but also around the world. It is able to tailor its marketing strategy depending on the market situation, be it domestic or global. It is the effective marketing strategies adopted by Sony, which have enabled it to achieve substantial amount of market share and loyalty among its customers both in its domestic and international markets.

In essence, the use of subsidiaries as entry mode has been beneficial to the company in many ways. For instance, the company is able to control the chain of supply through their wholly owned subsidiaries. This mode is in my perspective, the best strategy for this company especially because it also deals with different autoparts of its electronics. However, it should be understood that cultural and social factors have a very important impact on the mode of entry in international market. These may include the cultural differences in terms of values, language, life and work patterns, as well as business and management modes. If cultural variations are obvious, the wholly owned subsidiary has to spend more in adapting to the cultural distance, hence Sony has to prepare herself in such aspects and strategize on how to leverage such differences.


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