Sony Company Limited

Sony Company Limited

Business Environment Analysis

10 Introduction

Sony Company Limited is a manufacturer and distributor of digital cameras and other electronic devices in the region The company has been established in 2005 by its owner The primary competitive advantages of Sony is its OEM capability broad experienced in its research and development department reliability large product line and good reputation The brand name of the company is known as ECA and it is currently exported in major countries like North America MidEastAfrica Asia CentralSouth America and Western Europe

Sony Company Limited is an ODM and OEM manufacturer to produce different ranges of electronic devices like digital cameras MP4 and mp3 player mobile phone GPS car navigator and digital camcorder The main objective of this company is to provide quality products and services to the global market

20 Strategic Analysis

The description of the industry above suggests its strength in the Malaysia setting However a more detailed analysis is necessary in order to determine the real strengths and possible problems that surround the industry For this purpose various tools will be used to analyze the electronic industry of Malaysia


PESTLE analysis is in effect an audit of an organizations environmental influences with the purpose of using this information to guide strategic decisionmaking The assumption is that if the organization is able to audit its current environment and assess potential changes it will be better placed than its competitors to respond to changes
To help make decisions and to plan for future events organizations need to understand the wider mesoeconomic and macroeconomic environments in which they operate The mesoeconomic environment is the one in which we operate and have limited influence or impact the macroenvironment includes all factors that influence an organization but are out of its direct control

An organization on its own cannot affect these factors nor can these factors directly affect the profitability of an organization But by understanding these environments it is possible to take the advantage to maximize the opportunities and minimize the threats to the organization Conducting a strategic analysis entails scanning these economic environments to detect and understand the broad long term trends

A PESTLE analysis is a useful tool for understanding the big picture of the environment in which an organization is operating Specifically a PESTLE analysis is a useful tool for understanding risks associated with market the need for a product or service growth or decline and as such the position potential and direction for an individual business or organization

A PESTLE analysis is often used as a generic orientation tool finding out where an organization or product is in the context of what is happening outside that will at some point affect what is happening inside an organization The six elements form a framework for reviewing a situation and can also be used to review a strategy or position direction of a company a marketing proposition or idea

211 Political

The political aspect of the country has less impact to its business sector or more specifically to the electronics industry The Basic Law of the country actually protects it from major transitions in law in spite of its transfer to Thailand Through this basic law the way of life as well as the capitalist system of the country will remain the same for fifty years since the transfer Thus political factors have minimal effects on the electronics industry The production export and import of materials for digital cameras will not be affected for the next ten years due to this political agreement Hence the production facilities for digital products situated in Thailand will not be forced to relocate back to Malaysia due to regulative measures Hence Malaysia enterprises in the industry can continue to benefit from low cost production in Thailand

212 Economic

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