Competitive profile matrix (CPM):

The Competitive Profile Matrix (CPM) is a

tool that compares the firm and its rivals and reveals their relative
strengths and weaknesses. In order to better understand the external
environment and the competition in a particular industry, firms often
use CPM. The profile matrix identifies a firm’s key competitors and
compares them using industry’s critical success factors. The analysis
also reveals company’s relative strengths and weaknesses against
its competitors. As a result, a company can easily identify the areas it
should improve and the areas it should protect.
Key success weight SAMSUNG SONY APPLE
factor Rating Weighted Rating Weighted Rating Weighted
average average average
1-Brand image 0.07 3 0.21 3 0.21 4 0.28
2-Customer 0.1 4 0.40 3 0.30 4 0.40
loyalty
3-Innovation 0.08 3 0.24 3 0.24 4 0.32
4- R&D 0.07 3 0.21 4 0.28 4 0.28
5-Prices 0.05 2 0.10 3 0.15 3 0.15
6-Product quality 0.08 3 0.24 4 0.32 4 0.32
7-Affordability 0.07 3 0.21 3 0.21 3 0.21
8-Advertising 0.06 4 0.24 2 0.12 2 0.12
9-Financial 0.07 3 0.21 3 0.21 4 0.28
position
10-Product 0.08 3 0.24 3 0.24 2 0.16
expansion
11-Mangement 0.05 4 0.20 3 0.15 4 0.20
12-Growth 0.06 4 0.24 3 0.18 3 0.18
13-Sales 0.09 3 0.27 3 0.27 4 0.36
14-Opportunities 0.07 4 0.28 4 0.28 4 0.28
Total 1 3.29 3.16 3.54
CONCLUSION:
ANALYSIS From the matrix, we can interpret that the CPM of Apple is higher
than Samsung and Sony. Samsung is also close to Apple with average 3.29
SONY has to work to improve its marketing and advertising activities and
management. It also has to exploit its strong R & D and develop new products
with different range of prices to compete with its rivals.

BCG MATRIX:

BCG MATRIX The Boston Consulting group's product

portfolio matrix (BCG matrix) is designed to help with long-term
strategic planning, to help a business consider growth opportunities
by reviewing its portfolio of products to decide where to invest, to
discontinue, or develop products.

SONY has a highly diverse product portfolio. While some of them

have remained significant sources of profits for long periods, like its
Play Stations and Televisions, the time and consumer dynamics are
changing. As such, the company may need to liquidate or divest
some of its least profitable products as it did with SONY VAIO
laptops. It is the right time to analyze the company’s portfolio to
check out which of its products may need repositioning and which
ones are worth keeping.

The competition against SONY has kept growing fiercer, and its
growth now depends on the innovation and management of its
portfolio. SONY realigned its business in fiscal 2022 since the
company experienced a decline in sales across key product
categories. Some of the most profitable products like smartphones
and Televisions experienced a drop in sales in recent years caused
mainly by the growth in competition and the pandemic. However, its
new product segments have helped it build growth momentum. In this
matrix, we will see which of its products have succumbed to the
growing competition and become question marks or dogs from Cash
cows and Stars and which ones have raised from question marks to
become cash cows or stars.

SONY BCG Matrix:

QUESTION
MARKS ? STARS
1-Consumer electronics 1-Imaging and Sensing Solutions.
2-Audio systems 2-Movies.
3-Digital cameras 3-Music Releases.
4-Vision-S (automobiles)

CASH COWS
DOGS 1-Play Stations and gaming
1-Xperia Smartphones. software.
2-Televisions.

STARS:

The imaging and sensing solutions of SONY Corporation are the

leading stars in its product portfolio. Apart from being in a high growth
market, the company is also a market leader in this sector and owns
a large market share. The imaging and sensing solutions segment of
the company experienced stellar growth in fiscal 2022. It was also
why the company could successfully retain a lot of its growth
momentum and profitability. In contrast, many other profitable
product segments of the company experienced a significant decline.

Other major stars in the product portfolio of the company are SONY’s
movies and music businesses. While these segments’ growth rate
stalled during the pandemic, they will again start growing once the
impact of the pandemic is brought under control. Despite the
pandemic, these two segments experienced significant growth during
fiscal 2022. So, the growth rate of these two segments can
be superior after the pandemic, and the company also has a
significant market share in both these sectors. The market share of
SONY/Columbia pictures in the North American market, one of the
leading markets for movies globally, was 22.2% in 2022 compared to
11.7% in 2021.

CASH COWS:

SONY’s biggest Cash Cow is its PS5 hardware and gaming

software. While several of its consumer electronics products were
also its cash cows, their future seems to be bleak due to the heavy
competition and Chinese players’ entry. The Chinese brands sell
competing products at lower prices globally. In fiscal 2022, the sales
of PS5 hardware also dropped significantly, but it remained among
the company’s largest sources of revenue. The gaming segment of
the company remained its second largest source of revenue.

Apart from that, the television business of the company is also one of
its cash cows. While the company’s television business experienced
a decline in profitability in fiscal 2022, it remained one of the leading
revenue sources for the brand. Some years ago, SONY had more
cash cows, but now it has fewer of them since its consumer
electronics products like cameras and audio systems steadily met
declining sales.

QUESTION MARKS:

Several of SONY’s cash cows have become question marks in recent

years since their sales have kept dropping steadily due to the
growing competition and heavy price pressure. As a result, SONY’s
margins from these products have also kept shrinking. Its sales of
audio and video systems and digital cameras have kept dropping
steadily, and their future has grown bleaker with increasing
competition in the industry. SONY makes premium products and is
facing heavy price competition from the Chinese brands especially.
As a result, its share in these markets has kept dropping. SONY can
either increase its market share in these segments through higher
spending on research & development and marketing or will have to
liquidate some of these businesses in the future.

SONY’s new automobile project Vision-S is also a question mark.

Until SONY starts seeing some initial success in this area, it would
remain not easy to say if the company will be able to turn it into a
Star or cash cow.

DOGS:
SONY’s Xperia smartphones are experiencing higher competition
globally from many brands, including the Chinese, South Korean, and
American brands. As a result, their sales have kept falling year on
year. SONY’s revenue and profits from its smartphones have also
reduced significantly.

The main reason behind the declining sales of the Xperia

smartphones is the increasing competition, but apart from that, these
products’ premium prices are also a significant reason. SONY has
completely lost market share in the smartphone industry. Unless the
company can increase its market share through competitive pricing,
research, and development or marketing, it will need to divest its
smartphone business since it is also consuming its resources.

Overall, SONY’s business is in quite a good shape except for a few

products that seem to be losing their sheen in the face of increased
competition. The pandemic also affected the sales of SONY’s
PlayStation hardware and televisions. While SONY’s television
business is also experiencing reduced demand, it is still in a lot better
shape than SONY’s smartphone business. If SONY cannot resurrect
its smartphone business that has been losing its appeal among the
consumers who can buy Chinese smartphones with similar features
at much lower prices, it will be forced to divest its smartphone
business.

SONY’s imaging and sensing solutions business is its STAR. The

company holds the lion’s share in this industry. Its future in this
industry also looks great. The demand for SONY’s imaging and
sensing solutions from other smartphone makers strengthened in
fiscal 2022. The PS5 business of SONY, despite experiencing slower
demand in fiscal 2022, is still in good shape, and PS5 hardware is
the company’s cash cow apart from the SONY televisions.Due to the
rise of digital entertainment, the demand for televisions has been
shrinking. However, demand has not totally died out because people
still like to watch their favorite web series and programs on their
television sets. So the company can still milk its television business.
However, SONY televisions’ demand will continue to be affected as
Chinese and South Korean and the Japanese rivals of SONY
continue to release innovative models at lower prices. SONY’s
automobile endeavor’s success is not certain yet, but the picture will
become clear soon, and if it is a success, SONY might have another
Star or Cash Cow in its portfolio.

Porter five forces:

Porter's Five Forces is a model that identifies and
analyzes five competitive forces that shape every industry and helps
determine an industry's weaknesses and strengths. Five Forces
analysis is frequently used to identify an industry's structure to
determine corporate strategy.

Porter's model can be applied to any segment of the economy to

understand the level of competition within the industry and enhance a
company's long-term profitability.

Five Forces Analysis of Sony

The external factors impacting the business environment of Sony are
evaluated in this Five Forces analysis of the company. It is essential
to address these external factors and the corresponding five forces to
ensure long-term competitive advantages. The intensities of the five
forces relative to Sony are as follows:

1. Competitive rivalry or competition: Strong force

2. Bargaining power of buyers or customers: Strong
force
3. Bargaining power of suppliers: Moderate force
4. Threat of substitutes or substitution: Moderate
force
5. Threat of new entrants or new entry: Weak force
In Sony’s business environment, competition and the bargaining
power of customers have the highest intensities among the five
forces. These two forces are the most significant considerations in
Sony’s business decisions pertaining to the industry environment. It
is recommended that the company implement measures to increase
its competitiveness. To address the competitive environment
determined in this Five Forces analysis, aggressive marketing
approaches are applied based on Sony’s generic competitive
strategy and intensive growth strategies. For example, rapid
innovation can increase the competitiveness of Sony’s Xperia
smartphones. This recommendation also addresses the bargaining
power of customers by increasing product attractiveness. In addition,
to ensure holistic strategic solutions to issues in the industry
environment, Sony must develop measures pertaining to the
bargaining power of suppliers, the threat of substitution, and the
threat of new entrants. However, this Five Forces analysis puts
emphasis on the bargaining power of buyers and competitive rivalry,
which is also identified as a major threat in the SWOT analysis of
Sony.

Competitive Rivalry or Competition

against Sony (Strong Force)
This aspect of the Five Forces analysis evaluates the impact of other
firms on Sony’s industry environment. Competitive rivalry affects the
company’s revenues. The following external factors are responsible
for the strong intensity of the force of competition against Sony:

 High aggressiveness of firms (strong force)

 Low switching costs for buyers (strong force)
 Moderate number of firms (moderate force)

The high aggressiveness of firms is the main external factor

responsible for the strong force of competition that Sony experiences.
In terms of consumer electronics, the company competes
with Apple, Google (Alphabet), Samsung, and Microsoft. Also, in
terms of entertainment products (e.g., movies and music), Sony
competes with Disney, Netflix, and other firms. Moreover, low
switching costs are a major contributor to competitive rivalry. In the
Five Forces analysis model, low switching costs enable customers to
transfer from one provider to another. For example, customers can
easily transfer from Sony Xperia to Samsung Galaxy phones. On the
other hand, the moderate number of firms makes a moderate
contribution to the force of competitive rivalry. In this aspect of the
Five Forces analysis, Sony’s management must remain cautious of
the effects of competitive rivalry and low switching costs on the
business and its industry environment.

Bargaining Power of Sony’s

Customers/Buyers (Strong Force)
The influence of customers is covered in this aspect of the Five
Forces analysis of Sony. Customers or buyers determine the market
share and profitability of products. In this case, Sony must account
for the following external factors that create the strong intensity of the
bargaining power of customers:

 High quality of information available to buyers (strong force)

 Low switching costs for buyers (strong force)
 Moderate frequency of purchases (moderate force)

The high quality of information empowers Sony’s customers to

evaluate products available in the market. For example, because of
available online information, customers are effective in deciding to
transfer from one brand to another, or from one company to another.
In this regard, Sony can implement aggressive marketing and
information campaigns to attract customers. Also, the low switching
costs enable customers to easily transfer from one company to
another, thereby further intensifying the effects of the bargaining
power of buyers. The moderate frequency of purchases has a limited
impact on Sony’s business. A higher frequency of purchases typically
corresponds to a higher intensity of the effect of customers on the
industry environment. This aspect of the Five Forces analysis
indicates that Sony must focus its attention on the quality of
information and switching costs to properly address the strong
bargaining power of customers in the electronics, gaming,
entertainment, and financial services markets. Strategies in Sony’s
marketing mix (4Ps) help mitigate the challenges linked to the
bargaining power of customers assessed in this Five Forces analysis.

Bargaining Power of Sony’s Suppliers

(Moderate Force)
Sony depends on suppliers to support its business. This aspect of the
Five Forces analysis focuses on how suppliers influence the
availability of materials that firms use. The following external factors
are responsible for the moderate intensity of the bargaining power of
Sony’s suppliers:

 Moderate size of individual suppliers (moderate

force)
 Moderate overall supply (moderate force)
 Suppliers’ moderate forward integration (moderate
force)

The moderate size of Sony’ suppliers correspond to their moderate

and limited influence in the industry environment. For example, a
strategic change in one supplier would have a moderate and limited
impact on the company. In addition, the moderate overall supply has
a corresponding moderate and limited impact on the availability of
materials that Sony needs. Another external factor that contributes to
the moderate intensity of the bargaining power of suppliers on Sony
is the moderate level of forward integration among suppliers. Forward
integration is the degree to which suppliers own or directly control the
distribution and sale of their goods and services. Based on this
aspect of the Five Forces analysis, the bargaining power of suppliers
is a moderately significant issue in Sony’s operations. This issue
represents the effect of suppliers as stakeholders in the business, as
considered in Sony’s corporate social responsibility strategy and
stakeholder management approaches. Strategic decisions in Sony’s
operations management help address the bargaining power of
suppliers discussed in this Five Forces analysis.

Threat of Substitutes or Substitution

(Moderate Force)
Substitutes are threats that can hamper the growth and development
of Sony. The degree to which substitutes attract customers is
considered in this aspect of the Five Forces analysis. Sony’s
strategies account for the following external factors that lead to the
moderate intensity of the threat of substitution:

 Low switching costs for buyers (strong force)

 Moderate variety of substitutes (moderate force)
 Low availability of substitutes (weak force)
The low switching costs facilitate the movement of customers from
Sony’s products toward substitutes. In the Five Forces analysis
model, this external factor creates a strong force in the company’s
industry environment. However, the moderate variety of substitutes
limits this force. For example, customers may find more gaming
options through Sony PlayStation compared to traditional games.
The low availability of substitutes in many areas further limits the
threat of substitutes that Sony experiences. For instance, non-digital
gaming products are not readily available in brick-and-mortar stores
in many localities. Based on this aspect of the Five Forces analysis of
Sony, such combination of external factors leads to the moderate
intensity of the threat of substitution.

Threat of New Entrants or New Entry

(Weak Force)
Sony must address the potential growth of new entrants. This aspect
of the Five Forces analysis examines how new entrants compete and
reduce the company’s market share in its electronics, gaming,
entertainment, and financial services businesses. The following
external factors are responsible for the weak intensity of the threat of
new entry in Sony’s industry environment:

 Low switching costs for buyers (strong force)

 High cost of brand development (weak force)
 High cost of doing business (weak force)

In the Five Forces analysis model, the low switching costs empower
new entrants to easily attract customers away from established firms,
like Sony. However, a major barrier to new entry is the high cost of
brand development. For example, new firms must allocate sums that
approach the expenditure of large established firms to create and
maintain a strong brand. This external factor limits the influence of
new entrants in Sony’s industry environment. Similarly, the high cost
of doing business prevents new firms from readily competing head-
to-head against established companies. Thus, this aspect of the Five
Forces analysis shows that the threat of new entry has a weak
intensity in affecting Sony.
Space matrix strategic management method:

SPACE Analysis is an
analytical technique used in
strategic management and
planning. SPACE is an acronym of
Strategic Position and Acton
Evaluation. The analysis allows
creating an idea of the appropriate
business strategy for the
enterprise. The analysis assesses
the internal and external
environment and allows designing an appropriate strategy. The
analysis describes the external environment using two criteria:

 Environmental Stability (ES): it is influenced by the following

sub-factors: technological change, inflation rate, demand
volatility, price range of competitive products, price elasticity of
demand, pressure from the substitutes
 Industry strength (IS): it is influenced by the following sub
factors: growth potential, profit potential, financial stability,
resource utilization, complexity of entering the industry, labor
productivity, capacity utilization, bargaining power of
manufacturers

The inside environment is also described by two criteria:

 Competitive advantage (CA): it is influenced by the following

factors: market share, product quality, product lifecycle,
innovation cycle, customer loyalty, vertical integration
 Financial strength (FS): it is influenced by the following
indicators: return on investment, liquidity, debt ratio, available
versus required capital, cash flow, inventory turnover.

Internal strategic position External strategic position

Competitive advantage (CA) Industry strength (IS)
 Product quality -1 Entrant barrier 6
AXI Market share -2 Growth potential 5
S Brand image -2 Access to finance 5
Product life cycle -3 Operation cost 4
X Average score -2 Average score 5
Total axis X score = 3
Internal strategic position External strategic position
Financial strength (FS) Environmental stability (ES)
ROA 6 Inflation -5
AXI Leverage 5 Technology -1
S Liquidity 5 Demand elasticity -2
Cash flow 6 Taxation -3
Y Average score 5.5 Average score -2.75
Total axis Y score = 2.75

Conclusion:

We can interpret from SONY SPACE MATRIX that SONY

performance places the company in the aggressive quadrant since it
is financially stable and competing very strongly in the varies
industries that it serves, since SONY qualifies to be on the
aggressive quadrant so the company has to focus on backward,
forward, horizontal integration, market penetration, market
development, product development and diversification.
THE VRIO ANALYSIS

VRIO Analysis is an internal analysis tool used by

organizations to categorize their internal resources based on whether
they hold certain traits outlined in the framework. This categorization
then allows organizations to identify the company resources that
provide a competitive advantage. The VRIO Analysis is an Internal
Analysis tool.

The VRIO Model:

 ‍ aluable
V
 Rare
 Inimitable
 Organized

These four bricks of VRIO represent the four properties of the

resources and capabilities that lead to sustainable competitive
advantage. When the resource or capability satisfies all the four
requirements, the competitive advantage it generates will be
sustainable, whereas, when it meets fewer standards, the
competitive advantage will be temporary.

Moreover, a sustainable competitive advantage comes from core

competencies that arise from resources and capabilities.

SONY Corporation VRIO Analysis

Inimitabl Core
Advantage Organized Rare Valuable
e competencies

Competitive
Yes Yes Yes Yes Brand Image
advantage

Competitive
Yes Yes Yes Yes Innovation
advantage

Competitive Customer
Yes Yes Yes Yes
advantage experience

Temporary
Yes Yes No Yes Product Range
advantage

Temporary
Yes No No Yes Market Position
advantage

Temporary
Yes NO No Yes HRM
advantage

Brand Image:
SONY’s brand image is a key capability driving its popularity and
success in the global markets. Apart from driving higher popularity
and easier brand recall, and superior sales, the company’s image
also plays a key role in the brand’s global marketing. SONY’s image
is that of an innovative and ethical brand, which is why so many
consumers worldwide love SONY.

Its brand image also differentiates it from other brands in the industry.
The company has always focused on building a strong image. It is
known for its customer centricity; focus on innovation and ethics as
well as sustainability. Its brand image is a key source of competitive
advantage for the brand.

Technological Innovation:
SONY is a market-leading brand in several industries including
consumer electronics, entertainment, gaming consoles, and imaging
and sensing solutions. However, the main factor that has aided its
growth and success in all these areas is the company’s focus on
innovation. The company has released several products and
technologies that were the world’s first and many first of their kind in
its domestic market.

Technological innovation is a key source of competitive advantage

for the brand and has helped it differentiate its brand and products
from its rivals. Moreover, the company has been able to diversify its
product portfolio through technological innovation. If it were not for its
focus on innovation, the company would not have been able to
sustain its market share and leadership position in various
industries.

Customer experience:
In the 21st century, the focus on customer experience has grown and
in nearly all industries, the success of a company depends on how
heavily its focuses on customer experience. As a consumer
electronics, gaming and entertainment brand SONY has focused on
customer experience to grow its market influence and achieve the
market leading position it enjoys.

Focusing on customer experience helps companies differentiate their

image from rivals in the market. Superior customer experience leads
to higher popularity, higher sales and growth in customer loyalty. It
has helped the company sustain the competitive edge it enjoys over
its rivals.
Product range:
SONY’s highly diversified product range is also a key source of
competitive advantage for the brand. The company is not dependent
on a single product category for its revenue and profits. Instead, it
generates revenue from various products. While it is a leader in
gaming consoles, it has also remained a leader in televisions and
digital cameras as well as imaging and sensing solutions. Apart from
that, the company also enjoys a substantial market share in the
entertainment industry.

While there are several benefits of having a highly diversified product

portfolio, the leading benefit is that it does not need to depend on any
single product category to maintain its growth momentum and
profitability. It also gives SONY an edge over its rivals making it
difficult for them to shake SONY’s market-leading position.

Market position:
The market position of SONY is also a source of competitive edge for
the brand which it has retained through its focus on innovation,
product quality, sustainability, and marketing. SONY is a leading
player in the consumer electronics, gaming, and entertainment
industries. Its leadership position drives superior sales and higher
profitability in all the leading markets. However, the advantage that
comes from the market position is only temporary.

HRM:
People are mostly behind all the sources of competitive advantage
that a company has built. It is why they are among the most critical
sources of competitive advantage for any brand. Their performance
affects the profitability of a brand. In the 21st century especially, the
role of human capital in organizational success has grown more
highlighted. Companies are competing to attract highly skilled
employees.

SONY has also grown its focus in this area to attract and retain highly
talented people that can help it improve its offerings and serve its
customers better. The company employed around 111,700
employees as of March 2020. It has adopted employee-friendly
policies to attract and retain highly skilled employees.
Some of the key focus areas in terms of HR management for SONY
include diversity and inclusion, talent development, employee
engagement, and occupational health and safety. While the company
is performing well in this area, the rivals are also investing heavily in
training and retaining their human resources. It is why the advantage
is only temporary and the company needs to continuously focus on
HR management and improve its HRM practices to win in a highly
competitive environment.

CONCLUSION:

SONY is a market-leading brand of electronics. However, the

company has continued to lose market share in a few areas including
smartphones. It exited the laptop market some years ago. As a
result, the company has focused on new business areas for faster
growth and expanding its market. One of the key strengths of the
company is its focus on research and development. It is also one of
its leading sources of competitive advantage. Its strong brand image
and focus on customer experience have also helped the brand grow
its profitability. Sony is a highly popular and well-known brand and its
market-leading position depends on its competitive edge against its
rivals. The global market has grown highly competitive and the
company requires maintaining its focus on innovation and customer
experience to find faster growth.

VALUE CHAIN ANALYSIS:

Value chain analysis is a strategic process that can
increase profit margins and provide a competitive advantage for
companies of all sizes. Within this analysis, businesses identify areas
where the value of specific production and sales activities can be
increased. By discovering opportunities for cost reduction and/or
improved customer value, businesses can decrease production costs
and increase revenue.

Strong value chain strategy is your path to outperforming the

competition and becoming the leading company in your particular
field. Just as sales metrics and analysis indicate trouble spots in your
sales process, value chain analysis indicates the trouble spots in
your production process. You can’t fix what you can’t see.

Purpose of value chain analysis

The purpose of value chain analysis is to give your company a clear

path to greater profits. By understanding the value that your company
brings to your audience, you can craft a more strategic sales
plan and alter your chain activities to produce additional revenue.

Value chain analysis also helps your company determine the best
strategies within the current market—not just with your audience. For
instance, if you’re looking to offer new financial management
software, your value chain analysis might help you decide how
specific you want your targets to be and how much to charge for your
product. By finding the gaps in the market, you can use price and
quality to pinpoint the perfect niche.

Essentially, value chain analysis gives you a starting point for your
entire sales and marketing approach. From initial ads to sales funnel
analysis and lead qualification, all improvements stem from the value
chain.

SONY VALUE CHAIN ANALYSIS:

1. Primary Activities
2.1 Inbound Logistics
The company conducts several activities related to in-bound logistics.
There are some third parties such as Solectron and Flextronics that
help it in producing several product components. This way the
company ensures that it stay focused on its core competencies
instead of scattering its focus and resources in all directions. The
company’s manufacturing units receive goods from various suppliers
in the local market. In in-bound logistics, the company can be given 4
out 5.

1.2 Operations
The operational activities of the company are spread across several
geographies around the world. The company’s electronic division
generates almost 50% of the annual sales. In China, the company
sales around 10% of its items, whereas majority of the items
manufactured in this country goes out for distribution in other regions.
The items are manufactured in China within predefined operational
guidelines. Hundreds of low cost labor is employed for generating
products. Apart from electronics, the company is also in electronics
business, local entertainment, as well as advertisement activities.
These activities are generally operated at local levels to cater to local
customers only due to the varying tastes and preferences of
customers across geographies ("2020 International CES | Sony
Innovation | Sony IN", 2020). The rating for the operation can be 2
out 5 because in the recent times, the company has not been doing
too well on this aspect which is impacting its profitability. It is facing
tough competition in the market.

1.3 Outbound Logistics

The company has wide distribution network and it is doing amply
good in this segment. The network of company is spread across
several geographies which helps it in understanding the challenges
of various situations and it stays ready to tackle. It can be given 4 out
of 5 rating on this aspect. In the year 2020, the company was
featured in reputable magazines such as PC Magazine and
InfoWorld.

1.4 Marketing
The company’s marketing side has ensured to position the company
as innovator and the one produces products of high quality. This has
certainly helped in building improved brand image of the company
and attracts premium purchasers as well. Company has been
sensitive towards the actions that are taken by the competitors and it
makes great effort in countering it. The company has been able to
successfully offer great benefits and communicate the same to the
target customers (Patel, 2018). This aspect of the company can be
rated as 2.8 out of 5.

1.5 Service
The company provides good after sales service for its products,
which has helped in increasing customer satisfaction. There are
several service centers of the company spread across geographies,
available for to support local customers for all forms of products that
it sells. The issue resolution is faster and the customers have built
faith in the “Sony” brand. On this aspect, the company can be given
3.8 out of 5 rating.

2. Secondary Activities
2.1 Firm Infrastructure
The company has great infrastructure. It has strong accounting,
general management, legal, and administrative capability that has
helped it in continuously sustaining in the ever challenging
international market. It has great support systems that have allowed it
to effectively manage day to day operational activities. On this
aspect, the company can be given 3.8 out of 5.
2.2 Human Resources
The company has been doing great when it comes to hiring, training,
and retaining employees at the company. It has elaborate training
process that ensures that employees are trained well for the job they
are supposed to do. Moreover, people like working with the company
due to its appreciable and supportive work environment. The
company can be given 4 out of 5 rating on this ground.
2.3 Technology development
 The company employs latest technological capabilities to handle its
activities. It ensures that it stays ahead on the technical excellence
so that great values can be created for its customers. It has been
able to successfully retain and pass on knowledge base and build
good market presence. The company can be considered as a
technological company to some extent due to its involvement of
production various technological items. Rating for this aspect can be
3.8 out of 5.
2.4 Procurement
The company has separate division that looks after the procurement
of raw materials from local and international suppliers. The division
ensures that only the best of the best suppliers are on boarded with
the company. The company has ensured to build good relationship
with all the suppliers for sustainable growth. On this aspect, the
company can be given 4 out of 5 rating.
3. Conclusion
Overall, it can be said that the company has been doing good on
most of the grounds. It is expected that the future of the company can
be positive if it further improves its ability on all these aspects.
QSPM (Quantitative strategic planning matrix)

QSPM is a strategic
management tool used in the
evaluation of strategic
options and determination of
relative attractiveness of
strategies. The QSPM
technique determines which
of the selected strategic
options is feasible, and it
actually prioritizes these
strategies.

Product Development Market Development

Total Total
KEY FACTORS Attractiveness Attractiveness
WT Attractiveness WT Attractiveness
Score Score
Score Score
Strengths:
Strong R&D and innovation. 0.14 4 0.56 0.18 3 0.54
Well trained employees 0.10 4 0.40 0.18 3 0.54
Wide variety of products 0.08 3 0.24 0.10 3 0.30
Valuable brand 0.13 4 0.52 0.05 1 0.05
High quality products 0.14 4 0.56 0.10 3 0.30
Weaknesses
Dependence on electronics 0.08 2 0.16 0.10 1 0.10
Weak smartphones portfolio 0.10 2 0.20 0.05 1 0.05
Expensive products 0.12 3 0.36 0.14 1 0.14
Poor marketing 0.11 3 0.33 0.10 2 0.20
Opportunities
Emerging new markets 0.16 4 0.64 0.18 3 0.54
offering mobile-based games 0.15 3 0.45 0.18 1 0.18
Expansion in home
0.14 4 0.56 0.14 3 0.42
appliances
Engagement in software
0.14 3 0.42 0.10 2 0.20
development
Threats
Worldwide recession 0.12 2 0.24 0.13 1 0.13
Tough competition 0.08 2 0.16 0.10 2 0.20
Increase of counterfeit 0.10 2 0.20 0.12 1 0.12
rd
Overdependence on 3 party
suppliers of entertainment 0.11 3 0.33 0.05 2 0.10
services
TOTAL ATTRACTIVENESS
SCORE 6.33 1 4.11

CONCLUSION:

After performing QSPM the product development strategy total

attractiveness score is 6.33 more than the total attractiveness score
of market development strategy which is 4.11

So the organization can exploit its resources and strengths and catch
the developing opportunities by applying product development
strategy