Swott Analysis Devon Davis Jasmine Richardson Lisa Neatherys

Swott Analysisdevon Davis Jasmine Richardson Lisa Neatheryshemeko H

Swott Analysisdevon Davis Jasmine Richardson Lisa Neatheryshemeko H

SWOTT Analysis Devon Davis, Jasmine Richardson, Lisa Neathery, Shemeko Hopkins and Thomas Brantley BUS/475 December 4, 2017 Dr. Richard Taylor Table of Contents Introduction 3 SWOTT Table 4 Forces/Trends 5 Internal Strengths 5 Internal Weaknesses 5 External Opportunities 5 External Threats 5 External Trends 5 Adapting to Change 8 Supply Chain 6 Potential Issues/Opportunities 7 Conclusion 7 References 9 SWOTT Analysis Before a company develops strategies, they must take time to assess the positive and negative factors which impact their future. The SWOTT analysis provides a method to consider the internal forces: strengths and weaknesses; and then the external forces: opportunities, threats, and trends.

Internal and external audits identify the specific forces the business faces. The SWOTT table segments these forces into positive, negative, and trend buckets. The company may directly impact or influence some factors if the business adapts to change. Although many external forces are out of reach, the supply chain can be a source of significant opportunities and threats which are actionable. Once compiled, the SWOTT analysis provides a synthesized view of the organizational challenges.

This framework guides decisions on which issues to mitigate and which opportunities to pursue for a competitive advantage (David & David, 2017). As an example of the process, Sony Corporation is a large organization facing many forces as shown here through a SWOTT analysis. SWOTT Table Internal STRENGHTS WEAKNESSES Strategy To inspire and fulfill curiosity. Product Pricing, Products are expensive Structures Strong marketing analysis and experience and maintains its social networking. Processes & Systems The production quality is reliable. Resources Uses information technology to grow. Vulnerability of databases and networks Goals Create new and unique cultures and experiences. Strategic Capabilities Strong ability to add value to their products. Culture Strong Positioning in Emerging Economies. Technologies Projected growth in the Consumer Electronics Market.

The lack of dominant mobile devices is a major weakness in Sony’s business. Innovations Strong customer demand for products that are innovative. Imitability of some products Intellectual Property Own distribution companies, and they can manage publishing matters. Leadership Substantial brand identity. External OPPORTUNITY THREAT TRENDS Legal & Regulatory Suppliers fail to comply Global Foreign trade policies; political unrest Economic Maximize best cost country supplier sourcing; favorable foreign currency exchange; Unfavorable foreign currency exchange Technological Access to supplier technical resources; Innovation Leverage supplier innovation Social Supplier social violations Environmental Supplier green initiatives Supplier environmental violations Competitive Analysis Forces/Trends Internal Strengths Sony wants to be the company that inspires and fulfills curiosity, according to their mission statement.

The goal is to be able to create new and unique cultures and experiences. The company is the top company when it comes to electronics and producing products that have quality. One of the goals of Sony is to create new and unique cultures and experiences. Sony has been involved in both entertainment and electronics. Their strategic capabilities include a strong ability to add value to their products.

Sony is trying to get a position in economies that are emerging. The BRIC economies (Brazil, Russia, India and China), are regions in which the market is on the rise. The world’s population in these regions are over 40% of where emerging markets are being represented. Internal Weaknesses A strategic plan is a process in an organization that helps the owners to define and implement organization’s strategy and decisions on resources allocation to meet its objectives. SWOTT analysis act as a tool to identify internal strengths and weaknesses to opportunities and threats from outside (Hill, Jones, and Schilling, 2014).

The analysis is then used as a strategic framework to develop the most appropriate strategic plan to balance resource allocation process in organizations’ various activities. Sony Company is among the most popular consumer electronics developers in the world today. The company deals with two types of products; direct consumer’s products and products for other businesses or companies. Sony Company offers services such as consumers and professional entertainment and electronics services. It also offers financial services.

Sony Company has adopted SWOTT analytical tool to identify its internal strength and weaknesses regarding its environment’s opportunities, threats, and trends which have facilitated the Company’s strong establishment in its line of work in the world through focusing on areas that need to be prioritized. Identifying weaknesses in Sony Company has helped the company to establish areas that need more focus. Being clinical and keen on areas of weakness have helped the company to experience acute positive progress over the years. Some of the weaknesses the company should prioritize on when developing a strategic plan include; a) Product Pricing; Compared with other similar products from competitor companies like LG and Samsung, Sony products are the most expensive, and this has negatively affected the general overall turnover of their products all over the world (Hill et al.

2014). Most people around the world are not able to purchase Sony products because of their high pricing, and this has been viewed as a weakness in the Company. When developing a strategic plan for the company, Sony Company should prioritize their efforts in ensuring that their product’s prices are customer friendly. This will help to increase their sells. b) Product Diversification; Unlike other competitor companies like LG, Sony Company does not offer a wide range of products. This limits consumer’s products selection, a trend that has stagnated their global profit margins over the years which is a weakness.

In developing their strategic plan, Sony Company should focus on introducing new products to increase their products varieties. The company should invest their resources in innovation and research projects on new products and services. c) Low Product Promotions; Sony products are not heavily advertised or promoted like it is the case for other competitor companies. This has reduced the levels of consumer awareness all over the globe which inversely affect negatively their total sells. This reduces their profits annually. When developing a strategic plan, the company should address on the promotional policies of the company.

More resources should be allocated to advertisement programs. d) Huge Commitments on Retirement Benefits; Over the years, Sony Company has largely invested on pension liabilities of their workers which were estimated to be approximately $3.6 billion by the year 2013 (Yà¼ksel, and Dagdeviren, 2016). The increasing post-retirement benefits reduce the overall financial resource invested in production-related projects since huge chunks of company money is contributed to the pension plan which is a weakness in company’s development efforts. The company should review the retirement benefits policy when coming up with a strategic plan. e) Distant Proximity to its Customers; Most production activities of Sony Company are done in Japan.

Close to 60% of products manufactured in Japan have to be shipped to other regions around the world. This has weakened the Company-Consumer interaction which inversely affects their total sells. Interacting with consumers gives the company a chance to understand its customers need (Ireland, Camp, and Sexton, 2013). The company should focus on establishing an interaction avenue with their customers across the globe when developing their strategic plan. External Opportunities Sony company has always been in the business industry for a very long period accounting for over decades now, the growth and expansion of the business has come to take place because of lots of efforts, minds, dedications, risks, and manipulations of various situations put into one account to realize their dreams the far they have come.

Along the way, they have encountered lots of challenges, but they always have in one way or the other being able to pass through. There are various factors in the existence of a business that one has to get into mind or put into consideration, among them being; the strengths of the business, the weaknesses of the business, the opportunities within the business, outside the business or in both areas at the same time, the threats that the business faces, and lastly, the trends that the business has to put up with in order to be productive and remain relevant in (Rothaermel, 2015). External Threats Thomas’ input here External Trends Do we have an owner for this section? Adapting to Change It is important for companies to stay relevant, and to be connected with customers.

In order to do this, the company should be more than willing to be able to adapt to change. There have been companies that have refused to adapt to change, simply because they were not willing and able to do so. In order to adapt to change successfully, a company must add feedback loops, welcome failure, be focused on the process, ingrain learning, downplay power, and promote accountability. Having feedback available from employees and investors will let the company know if they are headed in the correct direction, not only for the company, but also for the customers they are trying to attract. New ideas need to be accepted, there should be incentives for testing out new services or products (Boss,2015).

Sony has adapting to change throughout the years. You can see this from one of their first products, home audio, to one of their most popular game console, the PlayStation 4. Sony’s first home audio was developed back in 1950. This was also the first tape recorder in Japan named, “type G”. This particular item had a 19cm per second tape speed.

Over the years, Sony has created variations of this product. In 2011, Sony released, “TA-DA5700ES”. This particular model was the first of its kind. It included a 9.1ch playback-compatible 7-channel amplifier that was integrated and with a correction technology known as ‘Sound Optimizer’. The PlayStation was produced in 1995. The console was able to process games in high resolution, and the graphics were similar to that of an arcade video game. 2013 was when the PlayStation 4 was launched. This system offered a new wave of gameplay with PlayStation gamers, as players were able to play online with their friends, and with people all over the world. In 2016, it was reported that 35.9 million PlayStation 4’s was sold worldwide (Sony Corporation, 2017).

Sony Corporation. (2017). Sony corporate info: Procurement activities. Retrieved from Sony Corporation. (2017). Sony Corporate Info: Product and Technology Milestones. Retrieved from Yà¼ksel, Ä°., & Dagdeviren, M. (2016). Using the analytic network process (ANP) in a SWOT analysis–A case study for a textile firm. Information Sciences , ), .

Paper For Above instruction

The process of strategic planning is fundamental for organizations to understand their internal capabilities and external environment. A comprehensive analysis like SWOTT—Strengths, Weaknesses, Opportunities, Threats, and Trends—provides organizations with a structured framework to guide decision-making, resource allocation, and strategic initiatives. This paper explores the SWOTT analysis in detail, emphasizing its application through the example of Sony Corporation, a global leader in electronics and entertainment. It underscores how internal and external assessments influence strategic choices and how companies must continuously adapt to maintain competitiveness in dynamic markets.

Introduction to SWOTT Analysis

SWOTT analysis serves as a foundational tool for strategic management, enabling companies to evaluate internal strengths and weaknesses relative to external opportunities and threats. It extends beyond traditional SWOT by explicitly considering trends—macro, industry, societal, and technological factors that shape the external landscape. Effective use of SWOTT can help organizations uncover key drivers of success and areas of vulnerability, informing strategic priorities. As Rothaermel (2015) notes, understanding these forces allows firms to proactively adapt and capitalize on emerging opportunities while mitigating risks.

Internal Strengths of Sony

Sony's core strengths include a strong brand reputation, innovative capabilities, and a diversified product portfolio. The company's mission emphasizes inspiring curiosity and creating unique experiences, which aligns with its focus on innovation. Sony has established a significant presence in emerging economies, leveraging its strategic capabilities to tap into rapidly growing markets like BRIC countries. Its reliable production quality, adept marketing, and technological advancements contribute to its competitive edge. For example, Sony's continuous innovation in entertainment technology, such as the development of the PlayStation series, exemplifies its commitment to staying ahead in dynamic markets.

Internal Weaknesses of Sony

Despite its strengths, Sony faces notable challenges. One key weakness is the high cost of its products relative to competitors like Samsung and LG, which limits affordability and broad market penetration (Hill, Jones, & Schilling, 2014). Additionally, limited product diversification constrains consumer choice and hampers revenue growth. The company's marketing efforts are comparatively understated, reducing global brand visibility. Financially, significant commitments to employee retirement benefits siphon resources from core business investments. Geographical dislocation of manufacturing introduces supply chain inefficiencies and weaker consumer engagement due to reduced direct interaction with end-users. Addressing these weaknesses is critical for strategic improvement.

External Opportunities for Sony

Sony operates in a landscape ripe with growth prospects. The expanding global middle class and increased consumer electronics demand provide substantial opportunities. Entry into emerging markets offers new revenue streams, especially in rapidly urbanizing regions. Innovation and research initiatives can lead to new product innovations that cater to evolving consumer needs. The integration of digital entertainment and smart technology also presents cross-sector collaboration opportunities. Furthermore, strategic partnerships with suppliers and other firms can enhance technological capabilities and reduce costs, providing a competitive advantage in an increasingly interconnected global economy.

External Threats Faced by Sony

However, Sony's external environment presents threats that require strategic vigilance. Fluctuating foreign exchange rates and trade policies influence profitability in international markets. Political instability in supplier nations can disrupt supply chains (Hoover’s First Research, 2017). Intense competition from firms like Samsung, Apple, and Huawei challenges Sony’s market share. The rapid pace of technological change demands continuous innovation; failure to keep pace risks obsolescence. Additionally, environmental regulations and social responsibility issues can tarnish brand image if not managed responsibly. External threats underscore the importance of agility and resilience in Sony's strategic planning.

Adapting to Change and Supply Chain Management

Adaptation is vital for long-term success. Sony's history demonstrates its capacity to evolve—from the first home audio devices to the PlayStation 4—securing its position through technological innovation (Sony Corporation, 2017). To remain relevant, companies must foster a culture of flexibility, encouraging feedback, learning from failures, and embracing new ideas (Boss, 2015). Supply chain agility plays a pivotal role in this adaptation, as Sony's global sourcing strategy enables rapid response to market fluctuations. Collaborating closely with suppliers, maintaining high quality standards, and leveraging innovation from partners allow Sony to mitigate risks and seize opportunities effectively. As political, economic, and societal trends shift, Sony’s proactive approach towards supply chain resilience and continuous innovation will be crucial to sustain its competitive position.

Conclusion

The SWOTT analysis offers a comprehensive framework for evaluating internal and external factors influencing organizational strategy. Sony's example illustrates how strengths like innovation and brand recognition can be harnessed, while weaknesses such as high costs and limited diversification are addressed through strategic initiatives. External opportunities in emerging markets and technological advancements present growth prospects, whereas threats from competition and geopolitical risks require agile responses. Continuous adaptation, underpinned by effective supply chain management and a culture of innovation, is vital for Sony to maintain its leadership in a rapidly changing technological landscape. Ultimately, a dynamic SWOTT approach enables firms to align their strategies with evolving market conditions, fostering sustained growth and competitive advantage.

References

• Boss, J. (2015). 6 Secrets of Organizations that Successfully Adapt to Change. Retrieved from https://www.forbes.com
• David, F. R., & David, F. R. (2017). Strategic Management: A Competitive Advantage Approach, Concepts, and Cases (16th ed.). Pearson.
• Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic Management: Theory: An Integrated Approach. Cengage Learning.
• Hoover’s First Research. (2017). Audio & Video Equipment Manufacturing. Retrieved from https://www.hoovers.com
• Ireland, R. D., Hitt, M. A., Camp, S. M., & Sexton, D. L. (2013). Integrating Entrepreneurship and Strategic Management Actions to Create Firm Wealth. The Academy of Management Executive, 15(1), 49-63.
• Mangan, J., & Lalwani, C. (2016). Global Logistics and Supply Chain Management. John Wiley & Sons.
• Rothaermel, F. T. (2015). Strategic Management. McGraw-Hill Education.
• Sony Corporation. (2017). Sony Corporate Info: Procurement Activities. Retrieved from https://www.sony.net
• Yüksel, İ., & Dagdeviren, M. (2016). Using the Analytic Network Process (ANP) in a SWOT analysis–A Case Study for a Textile Firm. Information Sciences, 365, 243-258.
• Yüksel, İ., & Dagdeviren, M. (2016). Using the analytic network process (ANP) in a SWOT analysis–A case study for a textile firm. Information Sciences, 365, 243-258.