Sony Corporation: The External Environment

The external or the company’s macro-environment helps Sony Corporation sustain worldwide success by managing external influences and related difficulties. External impacts on political, economic, social, technical, ecological, and legal respect have been identified in PESTEL studies. Sony’s PESTEL research evaluates how these elements create dangers or opportunities in the consumer entertainment, finance, electronics, and gaming services sectors, taking into account six key parts of the analysis.

PESTEL Analysis

Political Factors Affecting Sony Corporation

Sony Corporation sees prospects in political stability in the world’s major economies. This stability refers to the removal of governmental restrictions in the macroeconomic environment, allowing firms to grow. Furthermore, Sony has the potential to expand as a result of growing government backing for data security. Governments are stepping up their data security efforts, which is helping firms with online operations grow. Governments are developing further measures to encourage online commerce in this regard. This external aspect provides Sony with the opportunity to improve its online operations. One of the opportunities for the company is to elaborate on its online services.

Economic Factors Affecting Sony Corporation

As the emerging market economy grows, Sony will be able to expand. These markets are the fastest growing and can increase the company’s total revenue (Chen et al., 2021). Furthermore, the economic and financial stability of industrialized countries allows Sony to expand its operations while limiting market-related risks. Another factor to consider is the increase in disposable income around the world. This external aspect offers Sony the option to increase sales. According to this component of Sony’s PESTEL survey, economic conditions offer opportunities in remote or macro environments.

Social Factors Affecting Sony Corporation

Sony has additional options to increase revenue from the sale of gaming products as online games become more popular and the distribution of wealth improves. For example, more customers are likely to buy the product, so the company can expect more PlayStation sales. In addition, Sony can increase sales by actively engaging in leisure activities (Stiegler, 2017). This external component underlines the importance of marketing games to suit customers’ leisure requirements. This analysis demonstrates that Sony’s macro-environmental sociocultural elements lead to significant development opportunities.

Technological Factors Affecting Sony Corporation

Increasing reliance on digital technology presents potential opportunities for Sony Corporation. This element shows that individuals and businesses are becoming more interested in digital technology. The integration of digital technologies into smart homes will open up new markets for Sony while also expanding existing ones. In this regard, the company can benefit from increased adoption of mobile technology by innovating mobile devices to become more competitive and generate revenue (Oliinyk et al., 2018). The corporation is more competitive than Sony due to its superior research operations. This external issue creates a threat since it increases business challenges (Wiebe & Kozmenko, 2018). Meanwhile, using similar external forces, Sony will have an opportunity to build a more innovative company.

Ecological Factors Affecting Sony Corporation

Sony Corporation is increasingly focusing on corporate sustainability and offering growth potential. For example, groups can improve their brand image by strengthening sustainability initiatives. In this regard, Sony has the potential to move forward to make its technological devices more ecologically friendly. You can attract more customers to such products. Another factor to consider is the increase in the number of recycling facilities. This external element increases the chances of Sony’s successful efforts to solve end-of-life problems.

Legal Factors Affecting Sony Corporation

Patent protection has been improved, highlighting government and interstate highway efforts to protect patents. This external aspect gives Sony the chance to extend the business while minimizing the risk to personal knowledge and planning. Strict waste limitations put a company’s home appliances and gaming items at risk in terms of the time and money it will take to decrease their environmental impact (Yang & Xiang, 2019). In this regard, tightening product regulations pose a threat to the business as they incur additional costs for compliance.

Competition Analysis

There is a lot of competition in the industry in which Sony operates. In the consumer electronics sector, tough competition is ensured by a larger focus on SME growth, innovation, technological progress, and a growing desire for technologically efficient products (Alhashash et al., 2019). In recent years, the smartphone market has expanded dramatically (Maksyshko & Vasylieva, 2021).

Due to fierce competition and a rapid decline in profitability, the company has left the Indian smartphone industry. Due to fierce competition and rising price pressure, other Sony appliances have also become less popular in recent years. Samsung and other prominent competitors have announced products that are comparable in quality but much more affordable, reducing the company’s profitability. Sony’s competitors dominate the market with aggressive pricing strategies. As a result, Sony TV growth slowed, and Samsung and LG TV growth increased.

External Current and Future Situation

Sony Corporation has many opportunities in different sectors, according to the analysis made above. However, taking into consideration the fact the competitiveness among many different companies is rising in the emerging market. Sony should admit that there are some threats associated with the demand that might arise in the future. The current external situation is stable for the corporation, according to the financial reports. In order to maintain success in the future, the organization should also emphasize such social factors as sustainability.


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Chen, Chung-Chi, Hen-Hsen Huang, and Hsin-Hsi Chen. 2021. “Modeling Financial Opinions“. From Opinion Mining to Financial Argument Mining. Springer, Singapore, 2021. 9-20. Web.

Maksyshko, N., and Vasylieva, O. 2021. “Comparative Analysis of the Stock Quotes Dynamics for IT-sector and the Entertainment Industry Companies Based on the Characteristics of Memory Depth.” In SHS Web of Conferences, 7, p. 01003. EDP Sciences.

Oliinyk, V., Kozmenko, O., Wiebe, I., and Kozmenko, S. 2018. “Optimal Control Over the Process of Innovative Product Diffusion: The Case of Sony Corporation”. Economics & Sociology, 11(3), pp. 265-285. Web.

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