As the business wind of change continue steadily to whirl, Sony electronic company has realised that it may need to improve its functions by initiating a play place business. These are the words of the older computer entertainer, Ken Kutaragi. He contributes that the effort will give the company a competitive benefits over other competitors like the apple Inc, Samsung among others. For these reason, the study seeks to hue light on the play station initiative and most specifically the play train station 3 that the firm expects to boost its procedures with. The company seeks to do this by ensuring that it achieves the following objectives.
Increase the product awareness of the play train station 3 to the casual customers;
Capture the casual gamers by creating a product appeal that is performed through the modification of the marketing combination strategies
Work on an insurance plan that seeks to improve the overall sales profits of PS3 in the united kingdom and other regions
Offset the possible drop of sales because of this of the initiation of PS3 consoles to keep the firm's productivity
Compared to the play stop 2, play station 3 will have significantly more features credited its sophisticated nature, which is aimed at capturing the market share. Even though the company will face competition from other substitute producers, the newspaper will selectively identify ways by which the Sony are certain to get along with these.
Introduction
A play station is a product of the gaming system of the Sony entertainment company, that includes a series of video games and some having Wi-Fi internet connectivity. They are created so that one may enjoy video games, watch movies and store data. Without targeting any specific group, the product is aimed at compelling both children and men and women who prefer electronic game playing. As Haward stringer says, the merchandise will help the firm dominate the game playing industry because of the blue ray and camera support devices that the merchandise has. The reality in this is yet to be set up from the article distributed by the analysis, (Levy and Serizawa, 2004, p. 1). Below is an analysis which talks about how the company seeks to achieve it commercial aims. The analysis includes the swot and prestcom analysing business tools. Along with analysing the firm, a conversation and reflection over the same will follow to establish how realistic it might be.
THE PRESTCOM ANALYSIS
Political and regulatory analysis
According to the commercial regulation in the united kingdom, Levy and Serizawa observes that region has least restrictions in the business environment and for these reason; the Sony Company looks for to maximize on this opportunity by beginning more branches in this area. This is so because the play train station 2 consoles had not totally penetrated to the UK markets as the firm decided. The censorship rules had an impact on the firm's choices of the products to be able to ensure good service delivery, (Levy and Serizawa, 2004, p. 2). It therefore designed that the Sony Company should become more serious with the issuing of graph game to be supported with the play place in order for the consumers to enjoy gaming. This is a government regulation which looks for to root out imitations and also protect the protection under the law of the firm.
The administration also launched an anti piracy campaign where the Sony company in Europe was given to track the pirated goods and article the leads to the relevant regulators. This offered Sony an increased potential for monopolizing the marketplace by supplying play stations and selling the merchandise at a dictatorial price, (Bruner, 2004, p. 55). Other rival firms were not constantly in place to change this. Notably, it is from the anti piracy polices that many individuals were queuing out the Sony retail outlets to secure original items of play stop 3 among other Sony products.
Although market competition remains to be stiff in the electronics industry, Sony should always strive and remain at the very top. The central authority has power to change vital policies that affect the business sector & most specifically the electronics industry. For instance, the Sony Company is merely supposed to sell certain hardware of the play train station both 2 and 3 but specific hardware parts shouldn't be sold as it will be reselling its patents to outsiders. Created by the central power, these restrictions will enable the Sony electronics company to take pleasure from high returns to boost its businesses since it was facing an interior financial downturn.
The international trading procedures also declare that Sony Company should only sell its products through its stores or franchises; this rules gives Sony an higher hand in ensuring product syndication and marketing of the play place 3. Although all companies are subjected to taxation, Sony has a technique (lowering its range of worker) which looks for to reduce the price tag on producing the play place to be able to remain competitive effectively with alternative products from Microsoft Inc.
Economic
The economic downturn affecting the United States economy has put strain on the exchange rates; forcing them to decrease over other currencies. Since Sony Company can be an international firm, they have operations has been greatly influenced by the problem. The credit crunch reduced the purchasing electricity parity of the consumers in most regions within america. This meant that most people could not contain the propensity to buy Sony products included in this the play station. Because of this economic shock, the government has put in place economic regulations which some of them will directly affect the market of play stations.
Bruner postulates that low and high interest rates create a strong ability to invest and save respectively. Because of this, the consumers throw-away income increases sometimes when the interest levels are low; sometimes normally, this is not the case, (Bruner, 2004, p. 55). Consequently, the market share of play channels in america was lower than in the united kingdom.
Social
According to the study conducted by analysts, almost all of the consumers in the UK are fashion hypersensitive and as a result of these, the Sony Company has been able to increase its sales because the introduction of the play train station 3 in 2008. The product appeals by consumers also be based upon the marketing combine; the prices of the product of the play place 3 has lured most consumers to prefer the product over others even though their prices are low. Product loyalty tends to be higher for Sony play channels due to class where consumers feel they are really in if indeed they own any of the products. Socially, the adults have a culture of hearing music everywhere and at any time.
This provision has been well looked after because the majority of the play stations are small in proportions thereby easing mobility and usability. As this is not enough, others have used a culture of seeing movies, the huge screen of the product and the long lasting lithium battery given users an chance to enjoy their leisure time as they wish. Therefore that turning back again on the creation of play stations can not only raise the firm's businesses but also improve the social being of many.
Technological
The Japanese established corporation has upgraded its technical know-how on the play place 3 in order to attain the cost reduction strategy. Play station 3 has an in built Wi-Fi connection that enables users' access and downloads various supported applications to enjoy by the buyer. Among these applications are videos, pictures and media format files. It has made the corporation expand its functions especially in claims and towns which play a major role in education and travel and leisure London. Apart from these, other features common on the play channels is the extensive screen and a sharp screen that enhances viewing.
Additionally, the play channels have a voice-over-internet that permits an individual to talk to another consumer through the internet. Through such improvements, the firm has had the opportunity to be competitive effectively with other organizations like the Microsoft and Samsung. The live loading of television programs from the play station through the neighborhood network has increased the sales profits especially in the united kingdom and china since many users would like a portable gadget with a whole lot of applications.
The new format of Dvd and blu-ray within the play place has enabled the merchandise store movies and software's to be utilized by an individual. The company has banked on the product by spending a lot in terms of technology in order to offset the economic downturn the firm has undergone during the recession.
Competitive
Competitively, the Sony Corporation has an upper hand to control the market as compared to Microsoft Xbox organization that produces the same product. You can find other video recording applications which can only just be recognized by the Sony play channels 3 only. For example, most of the substitute products do not support. flv and. avi training video formats Sony does indeed. This has given Sony opportunity to avoid competition from all levels in the market. After that, the economic legislation states that for just about any company to join this sector, it will need a high capital base so that it can contend effectively with Sony. Such solidly are hardly found and for that reason Sony likes the monopoly of the market.
Organizational
Due to the 1. 9 billion us dollars the firm underwent as loses made many visitors to lose their careers from the Sony Company because this is an organizational technique to reduce the cost of development and also improve efficiency. Apart from that, the organization is using intermediaries to send out its products so that it can continue acquiring a more substantial market especially that provided by school and college or university students. The firm in addition has partnered with another company (Ericson) in order to market its services even over the mobile industry.
Market
The market of any industry is determined by the power of the organization to control the marketplace and the consumer preference over the merchandise. According to the loyalty consumers acquired on the play place 2, the company doesn't need to get a great deal in sales and marketing as its products are of high quality in so doing increasing their own demand.
THE SWOT ANALYSIS
Strength
The firm gets its durability from the fact that it can produce good quality and complex products which support various applications that replacement products don't. For this reason, the company has had the opportunity to control a more substantial market and therefore dictate the marketplace prices of its products. Apart from that, the progress in technology has enabled the company reduce its operating cost therefore increase the profit margin. The PS3 is one of the firm's products preferred and appealed by customer. Bruner asserts that the federal government of Japan appears to favor Sony corporation as it usually protect its patents by ensuring that strict laws governs piracy, which hampers growth of Sony, (Bruner, 2004, p. 127). From that, the organization has a number of consoles gives an economic and financial support to the firm thereby conditioning its economic platform. From the fact that the firm has enabled online services through the PS3, many consumers decide for the products than others.
Weakness
The current innovation employed on the PS3 can only just work on a high definition Television set because the play station cannot export video recording. Because of this, most of the folks don't favor PS3 as it pertains to this application.
Another obstacle the company is facing is that of charges the PS3 products; however the firm has lowered its prices by $100, the prices still remain high when compared with products from Microsoft Xbox.
Opportunities
The firm comes with an opportunity of utilizing its complex technology on the Sony Ericsson mobile phones. Which means that the diversification gives the firm a chance to provide an economic cushion to its operations (Bruner, 2004, p. 127). Comparably, Sony products especially the PS3 are user friendly and attractive in terms of appearance.
The Sony reader in the PS3 is able to read portable document documents and online books, which other replacement products cannot. It has given the organization an opportunity to explore new market segments to be able to increase its businesses.
Threats
A major danger in an enterprise undertaking is actually competition, Sony has committed to the creation of mobile computing which dell computer company has a monopoly. Over the same collection, the its isn't only Sony that produces plat stations since the Microsoft Inc also produces and provides them at a lower prices than Sony has. Nintendo in addition has sold many models of the video games products compared to Sony due to the fact Sony has an unhealthy marketing mix compared to those if its competitors
Conclusion
According to these analysis, Sony firms seem to achieve its work to offset its monetary and competitive downturn through the introduction of the PS3 product. It really is true that the strategy will work only when the management sticks with their targets. However, if the monetary situation in america won't change then the firm will have it rough.
