GROUP MEMBERS:•Himasweta Pattanaik
•Lopamudra Panigrahi
•Sunil kumar Panda
•Soumya sucharita Bastia
•K.vinod kumar
•Rupsa bhatacharjee
Milestones:• Establishment of Tokyo Telecommunications Engineering
Corporation by Masaru Ibuka and Akio Morita
1946
1958
1960
1967
• Company name changed to Sony Corporation
• Sony Corporation of America was established
• The first factory in abroad was opened in Taiwan
Milestones contd…
1989
1993
2001
2004
• Sony purchased Columbia Pictures
• Sony computer entertainment was established
• Sony Ericcson Mobile Communications established
• Sony BMG Music Entertainment established
Industry today
158,500 employees
Wide product range
64 billion $ annual sales
Strong brand image
“Sony is one of the most important companies in the world of business”
•TV & Audio Equipment
•Mobile Phones & Music
•Movie & Video Equipment
•Financial Services
Product
Range
•Computer
•Gaming
Hardware Industry Analysis
Threat of
new entry
Supplier
power
Competi
tive
rivalry
Threat of
substitution
Buyer
power
Porter’s five forces analysis
Time and cost of entry
Threats of
new
entrants
Specialist knowledge
Economies of scale
Cost advantages
Technology and protection
Barriers to entry
Threat of New Entrants (Low)
Economies of Scale
Barriers to
Entry
Product Differentiation
Capital Requirements
Switching Costs
Technology, Know-how and
Innovation
Government Policy
Bargaining Power of Suppliers (Low)
• Number of suppliers
Suppliers exert power in the
industry by:
* Threatening to raise
prices or to reduce quality
*Powerful suppliers can
squeeze industry
profitability if firms are
unable to recover cost
increases
• Size of suppliers
•Uniqueness of services
•Your ability to substitute
•Cost of changing
Bargaining Power of Buyers (Rather High)
• Number of customers
•Size of each order
Buyers compete
with the supplying
industry by:
• Differences between competitors
* Bargaining down prices
• Price sensitivity
•Ability to substitute
•Cost of changing
* Forcing higher quality
Threat of Substitute Products (Low)
• Substitute performance
Products
with similar
function
limit the
prices firms
can charge
• Cost of change
For example:
• Digital Camera in the place of Film
Camera
• Fax machines in place of overnight
mail delivery
•Number of competitors
Compet
itive
rivalry
•Quality differences
•Other differences
•Switching costs
•Customer loyalty
•Costs of leaving market
After analyzing all the above information, it can be
concluded that:• Hardware industry is doing tremendously good in the it sector,
introduce innovative technology, continuous improvements for gainin
g market share and competitive position in the market.
•Industry’s top business priorities its lower costs, IT
systems/technology improvements, Increase business growth, Improv
e efficiency, Customer service improvements.
• Company is focusing its strategies to achieve all these business
priorities by adjusting and optimizing product line, enhancing high
end service