Assignment 255vz

3-18. What microenvironmental factors have affected Sony’s performance since 2000? Microenvironment is the actors close to the company that affect its ability to serve its customersthe Company, Suppliers, Marketing Intermediaries, Customers, Competitors and Publics. So these factors that have affected Sony’s performance since 2000 are given below: 

The COMPANY Sony company’s mission, objectives, broadstrategies and politics were not on point. They were working for the short run but not for the long run. As stick to their old technologies rather than embracing new ones

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SUPPLIERS Their relationship with their supplier were not that much good thick causes them that they tooled off their eyes of the market, losing sight of future by failing to adopt to important changes occurring all around it.

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MARKETING INTERMEDIARIES There was no innovation on Sony’s product as they were focusing on old products.

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COMPETITORS The factor competitor highly affected Sony Apple, Samsung, LG were keeping race with the generation and technology while Sony was fell behind and was late to adopt. Competitor understand the environmental forces effectively that Sony couldn’t which causes it to lose market share as well

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PUBLICS Sony could not understand the finical publics for which they were losing their market share.

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CUSTOMERS Again a very important factor customer which Sony fail to understand Customer’s Wants innovation rapid growing technologies which comfortability which Sony understand for short term not for the long term situation.

For which the competitors took advantages off.

3-19. What macro environmental factors have affected Sony’s performance during that period? Macro environment consists of six major factors. They are demographic, economic, natural, technological, political and cultural environment. Factors that have affected Sony’s performance during that period are demographic, economic, technological, political and cultural environment. Demography is the study of human populations in of size, density, locations, age, gender, race, occupation etc. Sony’s performance is affected by demographic environment. The economic environment consists of factors that affect consumer purchasing power and spending patterns. For every company’s growth interest rates play an important role but falling in the interest rate affected Sony’s performance during that period. Because of the fall in unemployment rates Sony face some problems in the process of recruiting new employees in the business. Technological environment is the forces that create new technologies, creating new product and market opportunities. It is the most dramatic of all environments. Sony is not able to keep up with the other companies’ technology. For example, Apple makes a new product one after another and everyone nowadays buy them making it hard for Sony to compete. Sony took its eye off the market by losing sight of the future. The political environment consists of laws, government, agencies and pressure groups that influence and limit various organization and individuals in a given society. It is also one of the macro environmental factors that have affected Sony’s performance. Political environment have a direct impact on the ways Sony operates. Government often makes new decisions involving policy and it affects daily business. Cultural environment is also one of the macro environment factors that affected Sony’s performance during that period. Sony has to widely expand into different culture but it’s not able to do it.

3-20. what stands in the way of Sony’s success today? In 2005, the CEO Stringer moved into put Sony back on track. Again the great consumer electronics giant began to show signs of life, as Sony’s profit jumped 200 percent but that time they had to face a great recession. After a few more year of loss, 2011 was the comeback year for Sony because they were launching some new product like portable play station player, 24-megapixel camera, most advanced smart phones on the market, most of all company was ready to launch the Sony Entertainment Network. But the eastern Japan was attacked by two natural disasters at a time, an earthquake and tsunami. And for the destruction Sony shuttered 10 plants. After a month later of that devastating natural disaster, a hacking attack invaded the company’s Internet entertainment services. A short four months later, fires set by rioters in London and destroyed a Sony warehouse and to round out the year, floods in Thailand shut down component plants. So these are the reasons for which Sony is not facing any profits and can’t be so successful.

3-21. Given Sony’s current situation, what recommendation would you make to Hirai for the future of the company. Sony is technological based company, who must know that new technology create new market and opportunities, and every new technology replaces an older technology. Whenever old industries do not follow the new technologies, their business decline, as it happened to this company. The more products and technology become complex, the public needs to know that these items are safe. So the government agencies investigate and ban potentially unsafe products. So i would recommend Hirai to understand the market very well and come up with some types of product in the market that can give a very tough competition in the market. Other than this, Sony just need to try on again to come up in the market, since these situations are beyond the control of the company, that they faced in recent years, which had been stopping Sony from their success.