ISSUEGROUP 3 :AVANTIKA BANERJEEPRANAV REDDYAAKSHI MALASISHUBHAM JAJUAARYA MAHAJANRITIKA SINGHANIA

: DETORIATION OF SMART PHONE BUSINESS IN INDIA

Sony corporation (Sony.inc) is a Japanese company which started on may 7, 1946, It has emerged as an industry leader in technology by designing, developing and manufacturing electronic devices such as transistor radios, tape records and televisions. They have introduced products such as CD Player and portable music system popularly known as “Walkman” which revolutionized home media industry.They further diversified into cameras, gaming consoles, home-use pc’s, mobile phones and televisions which helped them build their value and image in the international market.Sony has an established production base in Asia with a wide sales network in around 200 nations across the globe. They have a strong marketing network in Japan, US and Europe.Sony has witnessed some major changes in it’s corporate governance with the step down of CEO Howard Stringer, who has been replaced by Kazuo Hirai in the year 2012.

INTRODUCTION

Medical related business• Sony biotechnology inc. 2012• Sony Olympus medical solution Inc.

2013

BUSINESS UNITSIMAGING PRODUCTS AND SOLUTIONS • Audio : Walkman (1979 )• Computer : VAIO series (1996) • Photography : the world’s third largest • camera manufacturer with ALPHA line.

HOME ENTERTAINMENT AND SOUND• LCD VEGA branch (2005)• BRAVIA in house branch

SONY GAME AND NETWORK SERVICES Play station branchPlay Station Portable (PSP)

SONY MOBILE COMMUNICATIONS • XPERIA smartphone series• Sony erricson

PESTEL ANALYSISPOLITICAL• The political situation of the country is stable.• Open economy with very less import export

restrictions.

TECHNOLOGICAL• Increasingly rapid development of new technology. • The rate at which technology is becoming obsolete

is very high.

ECONOMIC• One of the fastest growing economies in the world.

• Inflation rate is on the higher side.

SOCIAL• Need for communication.• Consumer purchasing power is increasing.• Mobile phones are increasingly becoming a status symbol.

PORTERS FIVE FORCE ANALYSISTHREAT OF NEW ENTRANTS (MODERATE TO HIGH)

• New entrant with new technologies and innovation.

• New entrants offer products at relatively cheaper prices.

• The share of other handset vendors after the top 8 which include a significant number of new entrants has globally raised from 37.6% in 2015 to 44.1% in 2016

THREAT OF SUBSTITUTES (LOW)

• Low threat of substitutes.• Despite of several competitors in the mobile industry itself,

the mobile can be substituted to a certain extent only by phablets.

SUPPLIER POWER (LOW)

• Mobile phones are manufactured throughout the world creating a global supply chain.

• The supply base is not concentrated enough . This enables different firms to dictate prices according to their preference.

PORTERS FIVE FORCE ANALYSISBARGAINING POWER OF BUYERS (HIGH)• Ability to extract information online has increased

manifolds.• Buyer can switch from one mobile brand to another

without incurring any high transaction or switching cost.

• Options are available for both high end as well as low end customers through a variety of brands such as Apple, Samsung, Karbonn, Micromax, Lava,etc.

INTERNAL RIVALRY (MODERATE- HIGH)• The industry is growing at a very fast pace.• Existence of customer brand loyalty.• Highly diversified product range.• Increasing need continuous research and

development and innovation.

SWOT ANALYSISSTRENGTH

• RESEARCH AND DEVELOPMENT DONE IN VAST NUMBER OF COUNTRIES INCLUDING SWEDEN, CHINA, JAPAN, THE US AND THE UK.

• ONE OF THE MOST ATTRACTIVE AND INNOVATIVE BRANDS.• THE SUPPLIER POWER IS LOW

THREATS

• INTENSE COMPETITION AND CONTINUOUS INNOVATION AND DIFFERENTIATION FROM NEW ENTRANTS.

• BARGAINING POWER OF CUTOMERS IS HIGH.• VERY STRONG COMPETITION FROM SAMSUNG AND

APPLE WHICH HAVE A COMBINED MARKET SHARE OF 40%.

WEAKNESSES

• LACKS IN UNDERSTANDING CUSTOMER PREFERENCES.• LESS TECHNOLOGICAL ADVANCEMENT.• LACK OF USER CENTERED DESIGNS.• LACK OF BRAND AWARENESS GLOBALLY.• LESS IMPORTANCE GIVEN TO PROMOTIONAL ACTIVITIES.• OVER DIVERSIFIED PRODUCT RANGE.

OPPORTUNITIES• STRONG CUSTOMER DEMAND FOR INNOVATIVE

PRODUCTS.• HIGH DISPOSABLE INCOME IN EMERGING MARKETS. • NETWORK CAPABILITIES AND LOW TARRIF OF SERVICE

PROVIDERS.• EXISTENCE OF UNTAPPED MARKETS. • MORE DEMAND FOR LUXURY PRODUCTS FROM HIGH END

USERS.

QUESTION MARKS

• SMART PHONES• TABLETS• MEMORY SEMICONDUCTOR STICKS• ROBOTS

CASHCOWS

• DIGITAL CAMERA

STARS

• LED TELEVISION (BRAVIA)

• IMAGE SENSORS

• PLAY STATION

DOGS

• WALKMAN

• CD /DVD PLAYER

MARKET SHARELOW HIGH

LOW

HIGH

MAR

KET

GRO

WTH

BCG MATRIX

PESTEL ANALYSIS :

PESTELS’ Analysis conclude that the external factors affecting the mobile industry in India are encouraging it.

PORTERS ANALYSIS:

PORTERS’ Analysis conclude that the mobile industry is not a highly lucrative industry

SWOT ANALYSIS:

SONY Has a strong R&D Facility which could be used to exploit the opportunity of demand for innovative products.

SONY Has a strong brand value which could be used to exploit the opportunity of tapping the untapped markets.

SONY Has a low supplier power which could be used to exploit the opportunity of focussing on designing luxury products for higher end users.

CONCLUSION

SWOT ANALYSIS:

SONY Has to innovate marketing strategies to promote it’s brand value nationally

Since their inception as an electronic company, Sony has successfully diversified into various business segments including electronics, game, pictures, home media and financial services. While the degree of diversity has bolstered sony’s recognition, it has also lead to the duplicity of resources into inappropriate areas leading to the loss of competitive advantage within each segment.

SONY has to acquire a decent market share for survival in the industry. For this it has to acquire aggressively. Acquisitions will help sony to scale their productivity by reducing cost of production and gain greater access to new technologies.

SONY has to have integration strategy to capture larger market share .

CONCLUSION

CONCLUSION

SONY has been failing to capture an appropriate market share in the mobile phone industry. It can contemplate leaving the industry entirely and redirecting its resources to the television industry where it has a greater market share.

SONY has a very strong R&D base. In order to capture a sustainable market share in the mobile industry SONY must carry out continuous research and development and innovate in order to improve their products and its appeal.

SONY should try to differentiate their products with innovative features to gain a competitive advantage

STRATEGIC CHOICES

REFERENCES

1. Topic swot threats : www.statista .com2. Introduction : www.sony.netBCG Matrix : 3. http://www.eetimes.com/document.asp?doc_id=13296274. http://www.ft.com/intl/cms/s/0/073e81a6-2189- 11e6-9d4d- c11776a5124d.html#axzz4B5s4a4Fz5. http://www.ft.com/intl/cms/s/0/5e4ac168-b4c4- 11e4-b2b0- 00144feab7de.html#axzz4B5s4a4Fz6. http://www.roboticsbusinessreview.com/companies/category/top_50/list7. http://www.ft.com/cms/s/0/5e4ac168-b4c4- 11e4-b2b0- 00144feab7de.html#axzz4B5s4a4Fz (image sensors)8. http://www.ft.com/intl/cms/s/2/6b239682-847e- 11e5-8e80- 1574112844fd.html#axzz4B5s4a4Fz (robots)9. http://www.businessinsider.in/THE-ROBOTICS- MARKET-REPORT- The-fast- multiplying-opportunities-in-consumer-

industrial-and- office-robots/articleshow/46114516.cms (robots)10. http://timesofindia.indiatimes.com/tech/tech-news/LG- Sony-fight- for-survival-

in-Indias-smartphonespace/articleshow/51131050.cms11. http://www.statista.com/statistics/263441/global-smartphone- shipments-forecast/