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Example research essay topic: Sony Corporation Company Profile History And Culture Swot - 1,551 words

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... ds in their fields which they create vision and sense of direction for the organization. The also acts as bridges between the employees and the management. The self promoting system and job rotating systems creates satisfaction for employees and give them greater exposure to all aspects of the business. Ideally, this would produce better products as engineers gain knowledge on consumer needs while marketing people engaged in the production and can give their point of view. The innovative style also stems from the "never copy others" culture, the generous funding of the R& D and huge amounts in capital investments.

As described by Ibuka, "It also stems from consumer driven in which technology is targeted at consumers or business while American electronic industry are spoiled be military and space applications. " Sony has been ahead in the race of Video Tape Recorders and digital imaging techniques in Mavica which both offer tremendous potential of household penetration and sales. It also has the opportunity to set up standards and dominate the field. Sony has also acquired enough technology to increase width by going into the high technology business fields. With the rise of the Asian countries, Sony also has the opportunity to make use of them for markets and for cheap labour.

Recommendations Building of Strategy With the succession of the two founders at hand, it would be very difficult for the company to find someone as visionary, as respected and with the same engineering background to lead the umbrella strategy company. With Sony as a much international company with major branches in Europe and the United States and stocks listed in 23 stock exchanges, the Japanese cultural school strategy is not sufficient. Becoming a mature company, the strategy should also change to more profit orientated. There should also be greater emphasis on market share, especially in Japan where Sony's market is shrinking.

Strategy should be aimed at greater control and communication between manager and workers, especially the engineers in the R& D Department. A more planned strategy should be adopted, which should outline the general direction of the company. Diversification One direction which is possible is concentrating more on electronic know how in non-consumer business. Currently, the buyer has much more choosing power and competition is fierce (Exhibit 2). The competitors are also able to copy the product in a much shorter time. To create larger profit margins, Sony should concentrate on the business sector and industries, supplying high technology equipment and parts.

This would make full use of the R& D Department, the strongest advantage of Sony without waiting for the price cutting and technology adaptation to fit the average consumers needs. This would also make Sony less dependent on coming up with a steady stream of relatively short-lived hit products, and able to use its unique talents in video and semiconductor technology to create its version of the office of the future. Although the Sony name is often related to expensive, high-profit end of the market, the organization should also expand its product range by offering lower priced, simpler featured products that would compete head on with other copycats. With the lower priced line, Sony can also increase its market shares in both overseas and Japanese markets. Alliance and Cooperation Sony should try to become a leader instead of a maverick. The difference is great, the leader, besides a great innovator, should also be a great coordinator.

New products, which involve both hardware and software such as the Mavica, should try to achieve industry wide standards. The standard may not be the best or the one created by Sony, but Sony, by pioneering in the field first, would already have a significant head start and the standards is just a way to ensure stability to allow Sony to concentrate on product development and improvement. This is because Sony is not large and strong enough to acquire and provide both software and hardware for one product. They also lack the know-how to the creative software market. Consumers also prefer to have the ability to choose between competitive equipment.

Internally, the different R& D groups should cooperate more. The product line should also be made more compatible with one another which is crucial through the communication between groups and managers, i. e. no more secret projects. Products should be made with higher added value and longer life rather than making frequent model changes.

This is also a shift from a manufacturer-orientated mentality to a consumer-orientated mentality, which is a way to save natural resources. The brand-line compatibility also builds brand loyalty for consumers. In relationship with the other Japanese consumer electronic firms, a more cooperative attitude should also be taken. Just like when Japanese took over the US market through cheap yet quality consumer goods, other Asian countries such as Taiwan and South Korea, with their lower labour cost, pose as great competitors at the lower end of consumer goods. Therefore, the Japanese firms should cooperate in setting up standards in high technology areas in order to reap maximum profits and extend the technological lead-time over their fellow Asian countries. Cost Cutting Cost cutting is important because R& D plays an integral part in the success of Sony and cannot be cut drastically although it gobbles up 10 % of sales.

Therefore, the only way to improve profit margins is to cut cost. Sony currently has factories in the United States and Japan. Although this is good for relationship of the firm in a foreign firm and offers a chance to pay suppliers with local currencies, Sony is not fully making use of other lower cost areas in the world, especially Asian countries such as Malaysia, Thailand and the Philippines etc. By setting up factories in these countries, Sony can take advantage of their cheap labour and also get a head start in their budding consumer markets. As mentioned above, products should be refined instead of reinvented so that there would be less set up cost and greater automation could be achieved. Integration of production, design and marketing In many ways, designing and developing of a product is separate from the production and marketing.

Although there is job rotation, the design stage is backed by intuition and experience rather than market research and analysis. Often, the rational is that it is the marketing personnel's job to find a market for a product after it has been developed instead of the other way round. To cure this phenomenon, R& D should listen more to what the consumer needs and then innovate instead of always creating new markets. With great freedom, the designing team should also take on greater responsibility in making the product fit to the current production pattern and marketing aims. They should also be made more responsible to the profit and lost of the particular product. Empowering these three separate groups create conflict, but it also brings these separate efficient groups together achieving synergy.

Implementation Internally, strategy should be reviewed beginning with renewing the corporate goals. It should integrate together both the Japanese work ethic and its western counterparts. This is possible, because Sony is a multinational corporation with employees and customers in many different countries. This involves writing the importance of profits and its responsibility to shareholders in the statement. Integration of the company, the designing, production and marketing should be encouraged, with increased communication between each ground the management acting as liaison and guidance. The management should be providing the organization with specific goals and strategies for the short and long term.

These changes are intended to balance business Vs engineering. Setting up alliances with fellow electronic manufacturers / competitor is crucial to mutual benefit so should be pursued as soon as possible. In areas such as the VTR, Sony has to decide what standard the world is adapting and make decisions to cut off setbacks. For new products such as the Mavica, new standards for the industry should be actively sort after with commitment from other competitors and conventional producers. This is also a change in culture for Sony so top management has to actively push and pursue for this direction.

Cost cutting, with emphasis in making use of lower cost of labour in the Asian developing countries should then be implemented. This could also be seen as a long term strategy. The work force could also be made more flexible. Finally, diversification, with emphasis on making business supplies a major part of Sony's business. This is one of the long term goals in which Sony should thrive to achieve. However, the end product ratio between consumer and business products should be constantly reviewed throughout the process to achieve the optimum mix.

Conclusion Although other electronic firms are taking market share and profits from Sony by being copycats, the heart of Sony's success, the innovative spirit and quest of excellence and perfection cannot be copied. Sony's main task is to integrate its talent by placing common goals and priority for this increasing competitive market. Sony also has the potential to innovate into a company with international operations as well as culture since it was one of the first Japanese companies to set up a main branch in the United States. With strategy and luck, Sony could become a great firm as it was and will be.


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Research essay sample on Sony Corporation Company Profile History And Culture Swot

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