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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. Electronics producing companies can easily switch suppliers (Stadtler 4). Power of the buyers; buyers have a greater influence in the prices and quality of products in the market. Their sensitivity to prices can lead to them switching to other companies (Stadtler 4). In the electronic industry, customers are limited to few brands since alternatives are not so many, for instance Apple, Amazon and Sony have globally recognised brands which limits the ability of their customers to influence their product and service prices. Substitutes; availability of substitutes in the market can influence the rate at which customers switch from one product to the next one as long as the product serve the same purpose. Sony and Apple manufacture mini computers but their prices vary; Apple offers them at lower prices as compared to Sony hence their customers can quit. Life Cycle Model Inception stage; here the managers and project team put together ideas towards development of a product. Requirements; it is the main focus of the project which involves determination of the end users, how the object is going to be used, the kind of data that can be keyed in and the kind of data that is going to be received as output. The materials that are involved in manufacturing the project are identified and cost evaluated, for instance in the case of a phone. Design; this is where the outcome of the experimentation stage is utilized. The designers are left with all the responsibility, to develop the product by putting together the software and hardware. Implementation; code production is at this stage which acts as their main focus of the product lifecycle. The code is automated using the data and information that was collected and generated during design stage. Testing; the product is experimented before it is released into the market to ensure that the product is viable enough and satisfies the customers’ needs. b) National and international environment (Macro-Business environment) Different countries have their own different rules and regulations governing labour, some may be higher than the sale’s of Sony making the company record losses. Political influence on international trade hinders Sony’s expansion to different regions. Sony has ensured that it meets the entire legal requirement by the law associated with manufacturing ...Show more


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)…
Author : donnie58
External and Internal environment analysis: SONY essay example
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