Macro Environment and PEST

Analysis

Presented
BY
S.R SaiSabar

10MBA46
 Group-8

Table of Contents

Industry definition

Introduction to Industry

PEST analysis of Sony

SWOT Analysis of Sony

Consumer Buying Decision Process

Refrences
Executive Summery

In Global markets among different Industries i found MOBILE industry because the scope of the
mobile industry is high when compared to the other industries. In today’s life mobiles became
necessary. In that mobile industry i choose the SONY company to analyze their Macro and
Micro Environment. This paper is focused on PEST Analysis of SONY, SWOT Analysis

I focused more on the Political, Economical, Social and Technological Factors which are playing
a major role business environment of SONY

Industry Definition-
 The Consortium was formed to develop a new mobile audio/video interface standard for directly
connecting mobile phones and other portable consumer electronics (CE) devices to high-definition
televisions (HDTVs) and displays. The MHL standard features a single-cable with a low pin-count
interface able to support up to 1080p high-definition (HD) video and digital audio while simultaneously
charging the connected device.

Introduction to mobile Industry-

The history of mobile phones begins with early efforts to develop mobile telephony
concepts using two-way radios and continues through emergence of modern mobile phones
and associated services.

Radiophones have a long and varied history going back to Reginald Fessenden's invention and
shore-to-ship demonstration of radio telephony, through the Second World War with military
use of radio telephony links and civil services in the 1950s, while hand-held mobile radio
devices have been available since 1973. Mobile phone history is often divided into generations
(first, second, third and so on) to mark significant step changes in capabilities as the technology
improved over the years

Introduction to Sony-
Our company was established at 1983, based on carrier in development of motor for
audio and video equipment in the passed few decades, and has continued effort to provide
advanced high motor and peripheral technology with hard study to technology, constantly.
During this period, we express to all of our customers and supporters, our gratitude and
deepest appreciations for their continuous business support.

It is Softronics commitment to manufacture the widely accepted products due to mechanical

technology and electronics technology combined together upon broad sense of software for
motor and peripheral technology. Now, it is an important theme to see how, recording data
accurately and high precision for computer, audio, video, optical instrument area etc., and
motor for ultra high-precision drive, ultra high-precision measurement and ultra high-precision
processing is needed to realize this theme. The role that motors achieve is great as motive
power of intelligent motion is used in order to rationalize production.
PEST Analysis for Sony Corporation:
Political factors for Sony Corporation can be changed at any time. The
Government holds the power to change any policies and regulations which may affect Sony
at the time. The credit crunch and the recession may become reduced, therefore resulting
in better trades for Sony Corporation. However this also means that the same has occurred
for Sony’s competitors. This means that Sony must develop ideas on how to stay ahead of
its competitors. The laws which can affect Sony Corporation would consist of new
international policies. Internationally the Government may change or increase trading
restrictions which would definitely change the way Sony works, because it needs to trade.
The Government also has the power to change minimum wage, tax, VAT etc. These factors
must be concentrated on so that Sony is prepared for any major global changes. Also,
minimum wage would also increase because reports indicate that since 1999 it has
increased from over three pounds to five.

Currently the state of our economy is not in a good position. From all the historic
recessions, we are currently reported to be in the worst one. The economic growth has
shrunk which means that the growth of the economy is negative. The recession and the
credit crunch may be deducted over the next year. Economically, due to this many changes
can occur such as the interest and exchanges rates. Due to the recession being deducted in
the near future, exchange rates may also decrease, however steadily. Sony must be aware
of any trading restrictions the Government has made. Since Sony is an international
company the exchange rates can be different to whichever country they trade with. If the
exchange rates in different countries have changed, Sony would need to work out what
prices are their products being sold at and whether it would be worth it.

Socially, Sony Corporation would be predicted to do well. The company has already gained
a lot of reputation because of the quality products and services they provide. Technology
has been improved by a mass majority. Sony may even have new competitors which may
impact on them. Sony must ensure that they stay ahead of technology. They must be able
to create revolutionary equipment for people because that’s what their company would
rely on to stay alive. Companies such as Microsoft and Apple would also do the same.
People have trends which Sony must learn so that they may create products which can
relate towards them. For example, many young adults tend to listen to music; therefore
Sony would create products which may allow people to listen to music anywhere at any
time. People will have different tastes of style, trends, activities etc. Sony must also
improve their work of ideas so that they can still please their customers and that they have
adapted with the ageing of the company.

Technological factors for Sony Corporation are very important to study. Sony Corporation
works around the use of technology every day. It depends on technology so that it may
provide efficient productivity of work internationally. Sony would use upgraded and new
technology to increase its productivity level and to stay ahead of its competitors. Sony
would need to use new technology to conduct its research and development which would
help the business create new products using customer information and also by conducting
market research.
Swot Analysis of Sony mobile Company

Strengths

 Sony able to create high quality products for its customers

 History of products shows that the business is very reputable.
 Engineers have learnt from the past failures and so they can produce and work better
 The company is very competitive towards other companies.
 Sony is able to expand its markets and work to produce various products.

Weaknesses

 Within the last few years Sony has been making a loss with a few of its products.
 Sales of all products are seemingly starting to slow down.
 The company has no sense of direction and is not being managed properly.
 The functional departments within the organisation are not communicating with one
another and so productivity has decreased.

Opport Opportunities

 The engineering department has increased in size and so therefore are working harder.
 Sony is known not to copy any of its competitors and so more reputation is gained
 The marketing department has increased advertising techniques in order to attract new
customers
 Sony is trying to sell their high quality products cheaper to attract customers
 Sony Corporation may decide to expand more overseas.
Threats

 Sony Corporation has competitors which are more powerful, such as Microsoft.
 Recent reports show that most of their products are forged and sold as fakes, which
means that some of Sony’s reputation is decreased.
 Sony also lacks the direction of strategy which means its competitors could be doing
better.
 Competitors achieving most of Sony’s customers due to the fact that their products are
achieving various market types.

Consumer Buying Decision Process-

There are following five stages in consumer buying decision process.

1. Problem identification:-

The buying process starts when the buyer recognizes a problem or need. The need can be
triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger
a particular need. By gathering information from a number of consumers, Marketers can identify
the most frequent stimuli that spark an interest in a product category. They can then develop
marketing strategies that trigger consumer interest.

2. Information Search:-

The consumer tries to collect information regarding various products/service. Through gathering
information, the consumer learns about completing brands and their features. Information may be
collected form magazines, catalogues, retailers, friends, family members, business association,
commercial, chamber of commerce, telephone directory, tradefair etc. Marketers should find out
the source of information and their relative degree of importance to the consumes.

Personal Sources: Family, friends, neighbor, as quittances.

Commercial Source: Advertising, sales persons, dealers, packaging, displays.

Public sources: mass media, consumer, rating organizations.

Experimental sources: Handling. Examine, using the product.

3. Evaluation of alternative:-

There is no single process used by all consumers by one consumer in all buying situations. There
is several First, the consumer processes, some basic concepts are:

First, the consumer is trying to satisfy need.

Second, the consumer is looking for certain benefits from the product solutions.

The marketer must know which criteria the consumer will use in the purchase decision.

4. Choice of purchasing decision:-

From among the purchase of alternatives the consumer makes the solution. It may be to buy or
not to buy. If the decision is to buy. The other additional decisions are:

Which types of car he must buy?

From whom to buy a car?

How the payment to be made? And so on.

The marketer up to this stage has tried every means to influence the purchase
behavior, but the choice is properly consumers. In the evaluation stage the consumer forms
preferences among the brands in the choice set. The consumer may also form an intention to but
the most preferred brand.

5. Post Purchase Behavior:-

After purchase the product, the consumer will experience the same level of product. The
Marketer’s job not end when the product is buying must monitor post-purchase satisfaction, post-
purchase action, post-purchase use and disposal

 Post Purchase Satisfaction:-

The buyers satisfaction is a function Of closeness between the buyers expectation and the
products Perceiver performance. The larger the gap between expectation and performance, the
greater the consumer dissatisfaction.
  Post purchase Action:-

The Consumers satisfaction or dissatisfaction with the product influence subsequent behavior. If
the consumer satisfied, he or she will exhibit a higher probability of purchasing the product
again. Dissatisfaction consumer may abandon and return the product.

 Post-Purchase Use or Disposal:-

The marketer should also monitor new buyers use and dispose of the product. If the
consumer store the product in a close, the product is probably not very satisfying. If the
consumer throws the product away, the marketer needs to know how they dispose of it;
especially it can be hurt the environment.
References –
www.economywatch.com, History of mobile industry.

www.mba-tutorials.com, Sony mobile Swot Analysis.