PS4 Situational Analysis

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INTRODUCTION: Sony is a Japan based company that operates in over 180 countries worldwide. (Company Profile for Sony Corporation, 2011) Sony was co-founded by Masaru Ibuka and Aki Miruta in 1946 and since then has grown into an international multimillion dollar company (Sony Corporation, 2014). Ibuka and Miruta originally started out manufacturing measuring equipment (Sony Corporation, 2014), and have expanded into more complex technological solutions, such as laptops, gaming consoles, and communications devices. One product in particular is the PlayStation 4. The PS4 is the most recent of Sony’s gaming consoles and since its release at the end of 2013 has sold 7 million units (Plafke, 2013), raking in 45 billion dollars of revenue for…show more content…
The company is competing with Microsoft in the computer and gaming consoles product area, then with Panasonic in the television and music department and with LG’s communications products. A second threat Sony faces relates to most of its production being in Japan. The company is susceptible to a fluctuating currency rate. For example the Japanese Yen has been steadily rising against both the US dollar and the Euro since November 2013 and experienced a 5% increase against the US dollar in December 2013. (OANDA, 2014). This made Sony’s imports to these countries from Japan seem relatively more expensive than products made locally. Another threat Sony faces is one relating to the specific product being discussed in this report. Recently the PS4 network was hacked, allowing users’ credit card details and other private information to be taken. (MacManus, 2012). Being vulnerable to attacks from hackers is a very big threat for the Sony Corporation. Opportunities: The Sony brand has been given many opportunities. One of these is that Blu-ray is become increasingly more popular, which gives Sony the opportunity to make these players as cheaply and efficiently as they can. A second opportunity is their partnership with the big gaming franchise Fifa. This enhances Sony’s corporate value. Weaknesses: One weakness of the Sony Corporation is its location. Almost its entire manufacturing takes

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