Introduction & Background
Sony has may departments that they excel in, but none more than PlayStation. PlayStation has consistently brought in the most revenue for Sony over the past five years. PlayStation is consistently a global leader in digital entertainment. It was developed by Sony Interactive Entertainment and was first launched in Japan in 1994. PlayStation is a gaming console that offers more than just video games. PlayStation also is a media center and online streaming service. There have been four generations released since 1994. There are many products that branch off from PlayStation including the PlayStation Vita, a handheld device, PlayStation Plus, an online streaming services, and PlayStation VR, a virtual reality system.
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As mentioned before one of PlayStation 's biggest threats is their competition. Xbox and the Nintendo Wii are catching up to PlayStation in sales. The competitors are also offering similar products which sets PlayStation back ("SWOT Analysis Of SONY Corporation" 2016).
Corporate Plan
There are many areas in which Sony PlayStation can improve; especially in the areas such as growth, profit and customer service. Sony is continuously improving and a growth goal that could be reached is to increase Playstation sales by 5% over the next three to five years. To increase profit PlayStation could set a goal to increase Gross Profit Margin percentage by (1-4%) over the next two to four years. To improve customer service PlayStation can focus on enhancing overall customer satisfaction.
Profit Goal & Strategies Improving the functionality of any industry’s supply chain sets up corporations for profitable and triumphant operations. Sony, one of the world’s leading players in gaming and entertainment, has shown that their innovative and artistic approach has contributed to their success. To further the company’s accomplishments, focusing on profits, we have established the goal to decrease COGS by utilizing more sensitive approaches by 2% while increasing Game & Network Services sales by 2% over the next 2 - 4 years. With our selected strategies, we believe that this goal is within the achievable realm, setting a path for long-term future success.
To
After the acquisition of EB Games, GameStop rose as the leading video game retailer in its industry. In an effort to sustain their position, GameStop will have to tackle several technological and sociocultural issues that have arisen from its competitive environment. The strategic objective we wish to accomplish in this analysis is to formulate a viable strategy that will continue GameStop’s growth in the industry to remain as the go to video gaming store for the video gaming enthusiast.
Sony Corporation is a Japanese owned company, created in 1946 based in Tokyo, Japan. The company competes in the technology market with diversity. This includes video games, computers and computer hardware, television, media players, etc. With that being said, Sony has had their ups and downs over the past few years, just like everyone else in this industry. Things such as the U.S. economy can really affect the future of this company. Now that the economy is on the downfall, things such as entertainment are not as important as paying for food, gas, and other bills. It is important to realize these things as you analyze the company due to the fact that the company
For the industry analysis, we are certain of sales since the PS4 is a consumer product particularly. For that reason, the buyer has a high bargaining power on the product. The market for casual gamers has increased seriously and sales increased after decreasing price of the PS3. Due to the uniqueness of every video game console and the games buyers have bargaining power. A small difference might be significance an extra hundred dollars for an intense gamer. People have more aware to the price difference because they play video games more casually and as a result they have more bargaining power. Buyers have a reasonable amount of power in the video game industry in particular with Nintendo. Although Microsoft and Sony have other sources of revenues, the major source of income comes from the sales of games and game consoles.
* Identification of the strategic goals of both the SBU and the parent company, Sony, and reevaluating goals as the market or technologies shift, or as Sony adjusts its corporate strategies;
To regain some of its market share in its “growth driven” and “stable profit generators” sectors, Sony can reposition its competition in the minds of consumers. For instance, Sony can use comparative advertising to demonstrate that its brands are superior to its competitors. In this situation, Sony can attempt to alter the portrayed image of its competitor, Nintendo, and position its PlayStation game console as the better-quality product (Positioning(marketing), n.d).
Sony Corporation is a well diversified company providing many complementary products and services. Not only does Sony offer electronics through its own website, it has a series of online products and services it offers to its users. The PlayStation Network, a part of the Sony Entertainment Network, is one of these many services. Through the PlayStation Network, owners of Sony PlayStation products can play games online with each other. Users can also purchase games and additional items through the PlayStation Network. Credit card information is stored in the network to be used for future purchases. Storing
Team 2 has researched and completed a comparative analysis of Mattel’s supply chain design and related costs with that of its major competitor Hasbro and the toy industry. What follows, is a brief background of Mattel’s traditional (non-electronic game) sector, its key competitors and Mattel’s use of supply chain management concepts in addressing the competitive landscape to gain a competitive advantage. The global toy and game market grew by 7.2% in 2007 with a value of $106.1 billion and by 2012, is forecasted to have a value of $126.2 billion, an increase of 18.9% over 2007. The toy market is divided into three primary sectors, namely game consoles, game software and traditional toys and games. Traditional toys and
As sales of Nintendo’s Wii and DS dominate the PlayStation 3 and Xbox 360, and PlayStation Portable, respectively, the pressure continues to mount on Sony and Microsoft to move to the next level in the ongoing console wars. Sales of the Wii in 2008
Threat of New Entrants: In 2008, the threat of new entrants was not very high. Sony’s Playstation, Microsoft’s Xbox, and Nintendo’s gaming systems were
Overall, the market response to these three consoles has been surprising. Nintendo Wii, has outsold its rivals and more surprisingly, Sony’s PS2 has outsold PS3. This has let Microsoft and Sony with the enormous challenge of competing with a rival possessing two key advantages: a lower cost console and a product with a sound response in the market.
The five forces that drive industry competition, a model established by Michael Porter, are; threat of substitution, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and intensity of rivalry. The video game industry must deal with all five of these forces. The analysis of the strength of these five forces within the video game industry will help to draw a conclusion as to whether or not it is an attractive industry for Sony to be in.
“To become a leading global provider of networked consumer electronics, entertainment and services.” That’s the mission of Sony, producer of the Sony Playstation. Sony, information and
Nintendo appears to have implemented a market-penetration pricing strategy. The Wii at a cost of $250 is 50% less than the 20-gigabyte PS3 (smaller hard drive machine). At this lower price, it is easier for the product to penetrate the market due to affordability in most segments. This aligns with the assumed company’s aim of maximising market share in the current and new segments. To achieve this, Nintendo ensured that the Wii was less costly to manufacture. Moreover, a higher sales volume may lead to lower unit costs and higher long run profits. Conversely, Sony is believed to have a market-skimming pricing strategy. The company invested $2 billion in technology, so this strategy aims at recovering the maximum amount of revenue to cover the high costs incurred in the early stages of the product life cycle. Additionally, Sony has a strong brand due to the success of their previous machines (PS2 and playstation) and the high price assists in communicating the image of a superior product with quality.
They may not lose a lot of of customers but it could cause a ripple effect for the ones that did chose to get a PlayStation instead. That is what happened with BSB, they had satisfied customers when they finally launched but not enough to keep them in business. Another thing that caused them to fail was not having the sufficient operating funds.
I recently entered a sector of the home entertainment market by purchasing a Playstation 3. The Playstation 3(PS3) is Sony Computer Entertainment’s third video game console which competes in the current seventh generation of consoles alongside Microsoft’s Xbox 360 and Nintendo’s Wii.