External and Internal environment analysis: SONY - Speech or Presentation Example

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External and Internal environment analysis: SONY

This research will begin with the statement that Porter’s five model was established by Michael Porter’s whose aim was to enlighten company managers on the influence external factors have in any business. The five forces include rivalry as a result of existing competitors, bargaining power of buyers and suppliers, threat of substitutes and treat of new entrants into the market. Rivalry; Sony is facing high competition from its competitors in the market for example Apple which recently announced the release of an improved iPad device has captured the attention of many customers hence Sony experiences reduction in its consumer base. Competition is also influenced by quality, price and modification. The technological improvement Apple has adopted in its iPad products forces Sony to compete for it to remain relevant in the market. New entrants; entry into the market is determined by the barriers to entry and the level of new competitors to enter into the market.  Sony initiated the creation of some electronic products which has attracted companies like Apple to high compete in the sector. The band names so of Sony and Apple are highly recognised and respected globally which may hinder the success of new firms. Supplier bargaining power; suppliers are associated with the price, distribution and payment terms. Their force suppliers have in an electronic industry is not high. Suppliers give specifications to companies before the manufacture of a product which may influence the cost of the resources used making them dominate the market. ...Show more

Summary

This research gives an overview of Porter's five-force model and gives the example of the implementation of these models at SONY. Also, it investigates national and international environment (Macro-Business environment) and internal environment (Strengths and Weaknesses)…
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