In many strengths, one of them being that

In this report, the marketing and
operational strategies of Sony Corporation will be analysed and interpreted,
focusing on the ways that the company chooses certain strategies to enhance
their impact on the industry. One product that Sony has introduced and has
continued to dominate the gaming industry is the PlayStation 4. The marketing
and operational strategies used by Sony to make sure that the PlayStation 4
dominates will be analysed and discussed.








of sony

Sony is a
Japanese company whose name originates from combining Sonus; the original latin
for sonic which means sound, with Sonny. The company Sony incorporated by Ibuka
Masaru and Morita Aiko in 1946. The pair met during world war two working as
engineers designing heat seeking missile for the imperial Japanese army. The
company has a global revenue of 68.35 billion and a net income of 659 million.
The company employs around 128,500 people globally. The company operates all
over the globe starting its journey in Shinagawa to Tokyo and then Minato.


In several
terms, Sony has been the leader within its industry, the company started from
making rice cookers to Japans first magnetic recorder, over the years the
company has created innovative and valued products. Examples of these are when
they announced the worlds first cd player, it was the CDP-101, another major
example is the first ever stereo cassette player, the infamous Walkman.


Being one
of the world’s largest electronics manufacturer, Sony has its fair share of
global competitors. The first being Samsung, another one of the leading manufacturers
of electronic goods. LG is also another competitor, a rather large one
generating over 100 billion dollars yearly, employing 210,000 people in across
80 countries.  Other competitors are
Panasonic, Philips, Dell.


S.W.O.T Analysis of Sony

Strengths –  Sony has many strengths, one of them being
that they built a brand, they are a trusted household name. The success of Sony
PlayStation is probably the most noteworthy strength. The company is well known
for their technological excellence rich heritage of technological expertise.

Weaknesses – the main weakness for
Sony is the excessive cost of media production, especially in the television
business, it has affected the companies pricing strategy. The company has lost
6.3 billion dollars every year over the last 8 years. It is now losing its
market share to competitors such as LG and Samsung. Another weakness is that
while diversifying their products they forgot about its core competency, this
caused a distortion in Sony brands

Opportunities – Sony take
full advantage of its movie and music business along with the experience they
have in the gaming sector to deliver content which is valued and to integrated
within its product line. The company also can enter the health care imaging
sector with a possible addition of a 30% stake in the Olympics.

Threats – the companies main threat
is price competition from its competitors such as LG and Samsung, who are
sneaking in the market with their lower cost products such as mobile phones and
televisions. Another huge threat which looks over the company is hackers; the
companies PlayStation Network was hacked which resulted in leaking of some
customer information such as credit card information.


PlayStation 4 Slim

Sony introduced the £259 PlayStation
4 on September 15, 2016, it sold almost 40 million consoles by the first-year
mark. Alongside the PS4 the company also introduced their new Dual Shock 4 pad
which look almost the same as its predecessor; arguably the best pad Sony had
ever made and most definitely up there with the best pads ever made. The
console is equipped with a 5Ghz IEEE 802.11 connection to the console. The
reliable 5GHz connection will improve quality of the PS4’s Remote Play
Function. Sony claims that power draw and energy efficiency reduce power
consumption by 28% compared to earlier models.


The main marketing objectives of
Sony are to increase the sale of their products as well as to uphold the value
to their customers and partners. Sony has a large advertising budget of 3.7 billion,
this is since they have such heavy competitors. Furthermore, having such high
competitors means that Sony must show deeper focus on promotion and marketing.
While digital marketing is at the centre of this strategy, the company also use
three main elements that are quite clear-cut. The first element is product,
Sony has a strong product mix which is the reason they aren’t intimidated by
competitors. Sony’s product is technologically efficient as well as being
outstanding in terms of design and quality. The second and third element is
pricing and promotions. The company use premium pricing, this creates a premium
image for the company. The brand is known as a company that sells premium technology,
so the pricing should correspond with the premium image. They aim their
products at the higher end of the market. The segment which they target is
higher end customers, small and big businesses. The premium pricing strategy
helps maintain the companies brand image while also reflecting their investment
in technology, research and development. Another reason premium pricing is
their chosen method, the company spends billions of advertising, and even more
on research into technology and quality, keeping all this in mind its clear to
see that the premium pricing strategy seems appropriate.

Sony use many ways to promote
themselves including traditional and modern. Social media is at the forefront
of digital marketing when it comes to Sony. Social media can be a major factor,
if a unique, interactive and creative customer experience is provided. The
company has used social media for them to engage with their customers and at
the same time promote their products. They have several million followers on
Facebook and Twitter. The company also uses Pinterest and Google Plus to help
market their products. This method as well as being cost effective and reaching
millions of people, the biggest advantage of using social media as a promotion
method is that they get to engage with their customers which helps develop and
personal connection to their customers, which furthermore maintaining their
customer base and upholding the value of the customers to the company. The
company has always been focused making sure their customers are heard and

Operational Strategies

The company has 10 decision areas
that they focus on to enhance their operations strategy. The first area is
design of goods of services. Sony considers how their products are made for maximum
business benefit. In this area the operations aim to minimize the costs,
maximise the quality, optimize human resource utilization and support
operational sustainability. The company is continuously attempting to improve
their methods. The second area is quality management. The operational managers
are focused on standard of quality and requirements as an objective in this
decision area. Their policy exaggerates the achievement of and support for
kando which is ’emotional involvement’. Kando is a very important factor in the
companies’ vison and mission statement. This factor makes sure that customers
are captured by the products. An example of this is that the operational
managers are always looking for ways to improve the quality of their products,
these efforts support the Kando factor. The third decision area is process and
capacity design. Adequacy of production processes, related standards and
resource allocation is the main objective of this decision. The company
addresses this objective through sustainability, which helps the company
satisfy the market concerns regarding the environmental impacts. Using
sustainable company production processes allows the company to lower the
operational costs based upon minimizing the resource and production waste. The
fourth decision area is location strategy. Sony is concerned with the distance
from their customers, suppliers and resources. This objective of this strategic
decision is to minimize the distance which will maximise their revenue and
further lower their costs of distributions. The fifth decision area is layout
design and strategy. This objective is to enhance their flow of resources, such
as human, information and material resources. For this reason, the operational
managers monitor their requirements for operational capacity, resources and
inventory. Achieving a high flow of production is done via an annual review of
layout designs and strategies the management team use expert opinion and
employee feedback for them to make decisions on productivity issues linked to
layout and design. The sixth decision area is job design and human resources.
This objective in this decision area is to develop human resources to support
the business’ operations and growth. The managers use the companies organisational
structure to organize HR development. To give an example, the companies
corporate structure defines job designs that specific to certain areas of
business within the company. The seventh strategic decision area is supply
chain management. The objective is to maintain the companies’ current
operations and business growth. They fulfil this objective by automations and
continuous support for suppliers. Automation means that the companies supply
chain management activities are maximised. Furthermore, they support their
supply chains to gain growth for the supplier, this means that they can
continue to maintain the companies supply needs while continuing to match the
companies’ production capacity. The eight-decision area is inventory management.
Sony’s operational managers make strategic decisions ordering and holding
operations while at the same time considering the suppliers capacity and
customer satisfaction levels. The companies approach to this objective involves
centralizing their inventory management systems that enable management
personnel to produce and update data on the inventory levels and operational
requirements. An example of this is that the inventory managers must regularly
check and update the data. The ninth decision area is scheduling, in this area
the objective is to maintain operations schedules that match the companies’
resources and the market demand. The company uses automated scheduling which
helps them achieve high productivity as everything is done on time. Also using
this system means that they have real time data on changes in the operational
needs. They managers use this information to apply appropriate changes to their
schedules. The tenth and the last decision area is maintenance. Achieving
operational stability and organisational reliability are the main objectives of
this area. Sustainability is one of the company’s main factors upon improving
the business. Sustainability factors adds to the reliability of the company’s
operations and productivity.

4 Marketing Strategies

Sony knew the market in which they would promote the PlayStation,
this is because they have a very strong gaming community which loves the companies’
games consoles and has done over several of years. The continued support for
play stations ever since the first one is the main reason they focused their
marketing on gamers. ‘Sony is
enjoying record sales of its PlayStation 4 console, signalling a return to
focus on gaming over entertainment is a marketing strategy that is paying off.’
Natalie Mortimer, 2015. The company the 4P’s or better known as marketing mix
as a strategy to promote their product. Price, place, promotion and product.


Price – Sony has kept their premium
pricing policy due their high-end technology background. Another pricing scheme
they use is skimming, in which they make the prices higher upon introduction
because of the high anticipation from their gaming community then the company
can skim prices after a couple of months of release.

Place- Sony is very dependant on its
suppliers as they provide them with raw materials and valuable parts to the
company. These parts are vital for the company as its an important part of the
development and production of the games software and hardware. The company uses
online markets such as Amazon, GameStop and Walmart as they are a huge part of
the sales figures.

Promotion- The PlayStation promotes
itself with its range of features however the company use an Umbrella Branding
Strategy which is the reason they have kept the company name alongside the product
for further promotion as well as sales. Another way in the company promotes its
products is online. As soon as the product release, the internet will be filled
with ads about the PlayStation because most of the users of games consoles
spend their time on the internet.

Product- the PlayStation 4 is the
newest gaming console produced by Sony. The aim was to give users a
high-performance gaming experience like they’ve never experienced before. The
powerful processing power and high-end graphics allows the customers to play
games on a new level, which makes PlayStation within the hardcore gaming

4 Operational Strategies

Sony has many
different operational strategies to improve the PlayStation, one of them being
to retain and expand engaged PlayStation users. This means they will
continuously enhance the features of PS4 game to maintain and strengthen their
competitive advantage. Another way they will make this strategy is to gain new
causal users while at the same time strengthening the engagement of their core
gaming community. Addressing opportunities in growth in markets with economic
development and cultural transitions, an example is that currently people tend
to watch more tv or use gaming consoles as a way of spending their free time,
so they could use this and come up with innovative ways to capture a new





The conclude, Sony has been very successful in operating
their business internationally. Over the years, they have managed to gain their
customers trust and loyalty due to their extra attention to detail in choosing
the correct marketing and operational strategies. The company has a very well
known and reliable brand name which is a household name in over 80 different
countries. The continuous marketing strategies the company use most definitely
helps towards the yearly sales revenue. Using premium pricing is a terrific way
to gain maximum sales because at the time of a products release customers will
want to buy the product no matter of the price. The main operational strategy
which has proved most beneficial is quality management. This is because if
every product that Sony produces has the same or better quality, they will
uphold their brand image being a premium technology provider. The company used
the marketing mix a marketing strategy for PlayStation which was an excellent
choice because it gives the company the chance to look at all the aspects of
marketing and make any appropriate changes, while at the same time providing
the guidance needed to make these changes. The Kando factor is very important
to the company because it ensure that they are always looking for ways to
better the company and its products. Overall, the company will continue its
dominance in all almost all its industries mainly because of their brand image
which is a very important element of making sure the company maintains its
expediential growth since the companies start up. If Sony continues to value
its customers trust and loyalty, there will be nothing stopping them continuing
their journey into the technological world.