To remain relevant, a company must have a strong strategy. Although SONY’s approach is diverse and innovative, it could benefit from a better communication strategy.
The present-day corporate strategy used by SONY is worth supporting for its emphasis on innovation and flexibility (Arshad and Yazdanifard, 2017). According to the company’s official statement, it seeks to “fill the world with emotion (or Kando) through the power of creativity and technology” (“Sony corporate strategy meeting FY2021,” 2021). In the context of the company’s purpose, namely, providing innovative technology, the specified strategy seems appropriate yet vague (Whittington, 2011). Specifically, it does not offer a direct link to SONY’s business, specifically, its products (games, electronic devices, network services, and the like) (“Delivering excitement, passion, joy and compassion to the world,” 2021). However, it is strongly connected to SONY’s mission, which is to inspire and fulfil people’s curiosity, thus, allowing for greater efficiency (“Sony’s mission / vision,” 2021).
The strategy aligns with the company’s current operations and practices quite accurately. Presently, SONY has been focusing on implementing a cost-efficient approach (Hadi and Hafnidar, 2019). Therefore, the suggested emphasis on creativity and technology can be maintained successfully (Camillus, 2008). Namely, with the help of creative thinking and technological advances, SONY will minimize costs while finding original solutions.
The described strategy is essential for SONY for several reasons. First, it encourages the company to remain innovative in the setting that is highly competitive (Alhashash et al., 2019). As a result, SONY retains its competitive advantage even compared to stronger rivals (Johnson et al., 2020). Second, SONY focuses on emotion (Kando), which contributes to a better rapport with the target audiences (Wiebe and Kozmenko, 2018). Finally, the current strategy allows for diversification and further expansion (Hambrick and Fredrikson, 2005). However, the strategy also implies dealing with several problems. These include the lack of clarity in the expression of the company’s approach and the absence of the focus on communication (Kurniawan et al., 2018).
Overall, SONY’s strategy, while being quite vague, is rather sustainable in the increasingly competitive global setting. Compared to its key rivals, such as Microsoft, which has only recently started branching out into the gaming industry and has not yet created a strong brand, SONY has decades of market presence, which makes its approach superior. Moreover, Microsoft does not position emotional connection with its buyers as one of its priorities, making SONY’s strategy unique by comparison.
Reference List
Alhashash, F., Alshammari, T. and Al-Mnaies, A. (2019) ‘Sony Corporation’, Journal of the Community Development in Asia (JCDA), 2(2), pp. 1-9. Web.
Arshad, A., and Yazdanifard, R. (2017) ‘Investigative synopsis of Sony Inc.’s strategic management issues/failures and how to overcome them’, International Journal of Management, Accounting and Economics, 4(9), pp. 917-936. Web.
Camillus, J.C. (May, 2008) ‘Strategy as a wicked problem’, Harvard Business Review, pp. 99-106.
Delivering excitement, passion, joy and compassion to the world (2021). Web.
Hadi, L. and Hafnidar, S. (2019) ‘The effect of selling price and sales promotion on decision to purchase of SONY brand home theater products’, KnE Social Sciences, pp. 662-675. Web.
Hambrick, D. and Fredrikson, J. (2005) ‘Are you sure you have a strategy?’, Academy of Management Review Executive, 19(4), pp. 51-62. Web.
Johnson, G., Whittington, R., Scholes, K., Angwin, D. and Regner, P. (2020) Fundamentals of Strategy. 5th edn. Harlow: Pearson.
Kurniawan, R., Christiananta, B. and Ellitan, L. (2018) ‘Evaluation of corporate strategy and dynamic capability to business performance’, International Journal of Scientific Research and Management, 6(03), pp. 199-206. Web.
Sony corporate strategy meeting FY2021. (2021). Web.
Sony’s mission / vision. (2021). Web.
Whittington, R. (2011) What is strategy – and does it matter? 2nd ed. London: Cengage Learning.
Wiebe, I. and Kozmenko, S. (2018) ‘Optimal control over the process of innovative product diffusion: the case of Sony Corporation’, Journal of Scientific Papers. Economics & Sociology, 11(3), pp. 265-285. Web.