Running head: BUSINESS STRATEGY: STRATEGIC PLANNING FOR SONNY
CORPORATION
Business Strategy: Strategic Planning For Sonny Corporation
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BUSINESS STRATEGY: STRATEGIC PLANNING FOR SONNY CORPORATION
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Contents
Introduction.
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LO3.1. Future strategy options.
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Market entry.
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Substantive growth.
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Limited growth strategy.
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Retrenchment strategy.
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LO3.2. Justification.
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LO4.1 Roles and responsibilities.
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LO4.2. Resource requirements.
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LO4.3. Contribution of SMART objectives.
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References.
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Introduction
The Sony Corporation remains to be one of the companies with a strong record of accomplishment in the electronic and telecommunication industries. Given its history as one of the oldest companies in Japan and the fourth largest handset producer in the world by volume, it is only fitting that the company embraces future strategies to ensure that it remains relevant in coming years. In more than one way, sustainability has established itself to become part of the way companies do business today. The changing business dynamics have shown that the initial sustainability approaches adopted by Sony Corporation have met significant challenges for the telecommunications division and for the broader Sony
BUSINESS STRATEGY: STRATEGIC PLANNING FOR SONNY CORPORATION
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community. The company has also witnessed new issues emerge in the market thus underlining the importance of adopting a reliable future strategy. Even situations where businesses run as usual, it is important that the organization develop a sustainable future strategy that will boost its operations in the long run (Pattanayak, 2012, 207). This report seeks to evaluate and recommend one future strategy that the company will adopt because it makes sense for the business aspect of the corporation while it remains part of what Sony
Corporation has been over the last two decades.
LO3.1. Future strategy options
The aim of this company is to step up and work on the prevailing challenges with the aim of eliminating future obstacles that, may compromise the sustainability of the business.
This evaluation focuses mainly on four major strategies namely:
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Market entry
2.
Substantive growth
3.
Limited growth
4.
Retrenchment
With major operational issues changing over the past few years, the company will have to work with its stakeholders in order to not only refine its focus but also ensure its sustainability in future.
Market entry
Being present in foreign markets is natural for many established companies including
Sony Corporation. Market entry is a phenomenon characterized by three major decisions that have to be made by the top management (Hazard, 2010, 167). There exist major issues on how the company should enter markets. Among approaches suggested is price reduction to ensure that the handsets and tablets provided by the company are cheaper compared to competitors. Even though this might work in the long run, reliable evidence has proven it to
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be difficult especially in areas where competitors have established a strong foothold in the market. Convincing customers to shift to a cheaper and newer option in the telecommunications market has proven to be an uphill task for many producers (Hazard,
2010, 169). Most company’s including Sony Corporation started their process of internationalization by first entering markets that are in proximity. This has traditionally been considered a more reliable and safe option. However, challenges emerge when companies seek to expand to emerging market like Africa and the Latin America. Such markets have major challenges that include a turbulent external environment, cultural differences, poorly or less developed infrastructure compared to traditional Sony markets, which may make foreign direct investment a risky undertaking for the company (Hazard, 2010, 197). Other than price setting, market
