Value Chain Analysis on Sony Corporation
Question :
Conduct a Value Chain Analysis on Sony (Electronics Industry)
Include ratings for each activity (Above Average/Average/Below Average)
o Inbound Logistics
o Operations
o Outbound Logistics
o Marketing
o Service
Answer :
1. Introduction
Sony Corporation is a reputed brand name among the consumers. In this paper, value chain analysis of the company has been done in reference to the electronics industry. Company in actual produces and provides various products and services. It is into electronic as well as entertainment industry. Some of the consumer electronic segments of the company are televisions and home cinema, audio, cameras, video cameras, in car electronics, storage and cables, play station, and items for professionals such as projectors, video security, medical, 4k digital camera and others ("Consumer electronics | Sony IN", 2020).
2. Primary Activities
In this section, primary activities are covered.
2.1 Inbound Logistics
The company conduct 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.
2.2 Operations
The operational activities of the company is spread across several geographies around the world. The company’s electronic division generate 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 labour 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 good on this aspect which is impacting its profitability. It is facing tough competition in the market.
2.3 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 2002, the company was featured in reputable magazines such as PC Magazine and InfoWorld.
2.4 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 3.8 out of 10.
2.5 Service
The company provides good after sales service for its products, which has helped in increasing customer satisfaction. There are several service centres 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.
3. Secondary Activities
In this section, secondary activities are covered.
3.1 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 has allowed it to effectively manage day to day operational activities. On this aspect, the company can be given 3.8 out of 5.
3.2 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.
3.3 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 (Murphy, 2018). 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.
3.4 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.
4. 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.
5. References
Consumer electronics | Sony IN. (2020). Retrieved 26 April 2020, from https://www.sony.co.in/all-electronics
Murphy, M. (2018). Sony doesn’t want to compete on price, so it’s going back to its premium roots. Retrieved 26 April 2020, from https://qz.com/1190630/sony-doesnt-want-to-compete-on-price-so-its-going-back-to-its-premium-roots/
Patel, N. (2018). Sony is no longer an electronics company. Retrieved 26 April 2020, from https://www.theverge.com/2015/2/18/8063269/sony-electronics-future-selling-off-pc-smartphone-tv
2020 International CES | Sony Innovation | Sony IN. (2020). Retrieved 26 April 2020, from https://www.sony.co.in/electronics/ces
