An Analysis on the Business Strategy of Sony Essay

An Analysis on the Business Strategy of Sony - Essay Example But, their profit was quite short lived. Sony Ericsson mobiles produced at low cost did not deliver the expected quality, leading to mass losses from 2006. Sony Company reported nearly 77% loss for the seventh consecutive year since then, on August, 2012 (BGR.com, 2012). Social Factors: Sony Eriksson’s affordable mobiles got an image such that they were for college students. The competition from the local Chinese company produced phones and the South Korean rival, LG electronics was very high. LG was financially stronger than Sony Ericsson and it kept introducing new luxury mobiles one after another. The targeted the well earning businessmen who had high potential to spend. Technological Factors: Sony was very quick to eliminate the quality issues when it came to technology. They introduced the W800 and W810 mobiles, the first in the Sony Walkman line to tackle the competition from the LG products. Sony Ericsson continuously proved they were superior to the other brands in tec hnology. They were the first to introduce mobiles with 1 megapixel and 2 megapixel camera. Sony Cyber-shot was the first of its kind with 45 minutes continuous video shooting. They designed the first Java based 3D gaming phones as well as the Bluetooth enabled phones. Most of the features found in modern day smart phones were first introduced only in the Sony Ericsson phones, making them one of the best MMS mobiles in the market. Legal Factors: The Company faced several legal complaints regarding their quality in the initial stages of collaboration, before they started producing technically enhanced mobiles. They made use of the stringent laws of the Chinese government to improve their technology and became one of the best companies to produce minimal...Political Factors: The Chinese government rightly predicted the invasion of foreign companies in their mobile market before a decade. This increased the production cost of the 3G handsets Sony Ericsson produced. Sony Ericsson mobiles produced at low cost did not deliver the expected quality, leading to mass losses from 2006. Sony Ericsson continuously proved they were superior to the other brands in technology. Sony Ericsson is now legally known only as Sony. Sony introduced the new Sony Xperia series in various models. This eliminates huge competition for the local market and reduces the headset production cost for the Sony Company. All the major smart phone companies in the world target the Asian especially Chinese market. The new Sony Xperia and Bravia series also contribute significantly to the company’s profits. Cash Cows: Sony Xperia J series, tipo and miro phones targetting the middle class market fetch good profits. Sony Ericsson established itself as the best multimedia phone and music phones in the market. Sony targeted the Asian market when the competition from other brands like LG was very high. It created a negative image for the company. Sony’s competitors like Nokia reduced their other involvements in consumer products industry and stared concentration only on the Smart phone market. This enables them to give superior mobiles at a cost lower than Sony. Sony Ericsson always placed their customers in front of others. The current Sony Company strongly believes it had lost nothing, compared to their initial profits.