At the center of it all are the Industry Competitors. Next, there is the Threat of New Entry, which puts pressure on prices, cost, and the rate of investment necessary to compete. There is also Power of Suppliers which captures more value by charging higher prices, limiting quality or services, etc. In contrast, the Power of the Buyer captures value by forcing down prices, demanding better quality, etc. Along with these forces is also Rivalry among Existing Competitors.. Sony Corporation has over 1 50,000 employees and gross’ around 64 billion dollars n sales each year. Obviously they are doing something right!
Although Sony is a very popular brand and is considered to be one of the best, they are not without their competition. Industry Competitors include Samsung, Sharp, and HP. One of the things that helps Sony stay successful is that the Threat of New Entry is low. This in part is due to the economics of scale, product differentiation, and also government policy. In terms of the Bargaining Power of Suppliers, because management chains are not very concentrated and the fact that suppliers are constantly being forced the UT their prices to stay in business, this category is also low.
Now we come to the high end of the scale with the Bargaining Power of the Buyer. This competitive force is rated rather high due to the fact that there is little difference between electrical products, buyers do much more research to find the cheapest cost, and also because online shopping has increased exponentially- all in which brings power to the buyer. Finally we approach Rivalry among Existing Competitors. It’s no surprise that this has a high possibility factor, mostly due to the rapid turnover of products. Technology has made it almost impossible for companies to stay current with new releases which cause items to become obsolete.
There is also the fight against counterfeit items, the slowdown in economy, and the intense competition. I believe that this would be a great industry to enter. I may be a little biased due to the fact that I worked for Sony for a short two years and maybe too because my boyfriend is a manager of one of their outlet stores. Even though Sony is such a huge company with so many thousands of employees, they really truly made me feel important while I was employed with them. They had 24 hour access to HRS, they gave 401 k packages, and they had regional managers who would personally visit the store which gave the impression of inclusion.
I would recommend entering this industry to As a company Sony has been with-standing the trials of the economic downfall over the last few years. That’s not to say that they have not had their losses and cutbacks, but as a whole, Sony Corporation is still a very profitable company. Most of their problems come from less foot traffic in stores, people not willing to pay for rand new items anymore, and they also have somewhat unrealistic expectations of meeting previous years’ sales goal.
Never before has the need for technology and innovation been more valuable to the customer. I believe Sony and its amazing products will always be a consumer favorite. Works Cited Sad, T. (2013, March 19). Slideshows. Retrieved November 5, 2013, from The five competitive forces that shape strategy: http://www. Slideshows. Net/diastase/the-five- competitive-forces-that-shape-strategy- 17364247 Werner, R. O. , & Knapp, R. W. (summer, Volvo. 43 Issue 3). REGULATION OF CHANNELS OF DISTRIBUTION. 107-108.