Sony Case
1.) What microenviormental factors have affected Sony’s performance since 2000?
One major macroeconomical factor that has affected Sony’s performance is its competitors,
specifically, Samsung and Apple. As Samsung took over as the world’s largest consumer
electronics company, Sony was pushed aside and was left to compete with Samsung’s size and
innovations and the onslaught of new, competing products from Apple. The company also was
affected by the reputation the company had in outdated technology that they tried to get rid of
over the years. Even rioters (the publics) rioted and destroyed a Sony warehouse which not only
affected their image but their products.
2.) What macroenviormental factors have affected Sony’s performance during that period?
Sony was affected by changing technological forces at play. As consumers were demanding
access to the internet, Sony was slow to adapt their standalone products to include internet
access. Thinking that they were an unstoppable force, Sony did not innovate and stuck with old
technology that had worked for them previously. They were also faced with economic forces
(the great recession of ’08–’09 ) that affected consumers’ wants and needs for the technology
Sony was producing. Sony was also affected by natural forces when Eastern Japan was hit by an
earthquake and tsunami that disrupted production of Sony items. Many other natural disasters
and hacks also occurred that majorly affected Sony’s performance over the period.
3.) What stands in the way of Sony’s success today?
The main thing that stands in the way of Sony’s success is the lack of technological changes and
innovation that will draw in customers in the numbers they need to recover. Sony has not produced
major products that have allowed them to be the “total entertainment provider” they market
themselves as.
4.) Given Sony’s current situation, what recommendations would you make to Hirai for the future
of the company?