Anlysis Of Sony(Hk)

Introduction:

Sony was found in Hong Kong since 1959 when the company started a transistor radio assembly facility in Hong Kong through a local entity. In 1962, Sony Corporation of Hong Kong Limited was established to oversee all the activity in the Asia Pacific region. As China's open door policy in early 1980's, Sony Hong Kong then changes from a liaison office to a sales and marketing operation responsible for business activities in the region. To be near the customers, Sony Hong Kong has set up office in the main city of China. Also in 1994, Sony Hong Kong acquired Fook Yuen Electronic Company Limited and support Sony Hong Kong in selling.

Sony Hong Kong provide a wide range of electric products in Hong Kong, including notebook computer, mobile phone, MP3, digital camera and HD TV. Other than selling, Sony Hong Kong also provides comprehensive after-sales and repair services to customers.

According to the rise of the internet, Sony Hong Kong launched the e-commerce website www.SonyStyle.com.hk in 1999 to provide customers a convenient on-line shopping platform. In addition, Sony Hong Kong further strengthens the customer ties with the launch of its official membership 'My Sony' (www.sony.com.hk/mysony), allowing members to maximize Sony online shopping experience with My Sony's exclusive privileges and activities.

PESTLE analysis:

Political Factor:

Although Hong Kong has already return to China in 1997, HKSAR still have the independence of jurisdiction and legislation. That means Sony's business will not be affected by the change of relationship between Japan and China.

Also ,HKSAR is one of the most peaceful and safe place in the world, Sony no need afraid of terrorism and disaster which will damage to the company.

Economic Factor:

During the SARS outbreak in 2003, Hong Kong economy has come to the worst point in the history, but in 2007, Hong Kong has already recover and also come to a highest point in the stock market. The Hang Seng Index have come to the highest point in the history, many people has made profit in the stock market, this make people more willingness to buy things.

Social Factor:

In Hong Kong, many people like buy things which have a good brand name, they also will put brand name to be a important factor when they are buying things. They always buy things in the same brand name which they think that is good. As Sony is a huge oversea company in Hong Kong, Sony has a very good brand name for Hong Kong citizen.

Trend is also one of the important factors which affect the decision of the people. In Hong Kong, people like to buy oversea products, especial Japan. "Made in Japan" can make the people think that your product are better than others.

By these factors, Sony has a great advantage in selling.

Technological Factor;

In 2008, Hong Kong started to use digital broadcast in broadcasting TV, the need of high definition TV is increase, since the old TV cannot get signal of new TV broadcast, people have to buy new TV. Also Sony has a extra set of tools for high definition TV, such as PS3 for entertainment and high definition DV,DC for high definition recording.

This help Sony to increase their market in Hong Kong.

Not only high definition TV, but also the Blue-ray. Blue-ray is the a new form of disc which are developed by Sony. The capacity of the blue-ray disc is a few times of the DVD. Although you can found HD DVD in the stores, Blue-ray disc are also have a better performance in play video in HDTV as only blue-ray disc support FULL HD. This unique technology can help Sony to open a new market.

Legal Factor:

As Hong Kong is a free port, Sony no need to afraid of the increase of tax and decrease of quotas.

Environmental Factor:

As Sony have no production lines in Hong Kong, there are no factor that affect Sony.

Porter's 5 Forces Analysis

1. New Entrants:

As we have mention before, in 2008, Hong Kong started to use digital broadcast. It foresees that all TV will only use digital broadcast in 2012. So high definition TV have become a hot product in Hong Kong. There are new entrants enter this section, such as ACL which are Hong Kong brand name. They provide the same size of HDTV with lower price and maintenance. The quality is almost same with Sony.

However, buying behavior are the main enter barrier. People want to choose the one which are more expensive and have a better brand name.

2. Substitutes from other industries

As the people start to change their TV into HDTV, most of the people not only use HDTV to watch TV program but also watch video and movie. But they will found that the quality of movie played by DVD become very bad, since DVD is not enough resolution for HDTV. Only Sony's blue-ray can provide enough resolution for HDTV.

Then a new HDDVD was found.

However, the performance of HDDVD are still cannot catch up with blue-ray disc, and the cost of HDDVD is much higher than that of blue-ray disc.

3. Buyer

Sony's products are mainly focus on who are willing to buy better with a higher price and are able to buy. So Sony still has a big sale although Sony is the most expensive then the others.

Sony also set the people who like a good look for electrical device as their target. So Sony always show their produces in the exhibition.

4. Suppliers:

Although Sony is a Japanese brand name, it is a international company. Sony has to choose the correct supplier to supply the material for the product line. Before being supplier of Sony, they have to pass 2 meeting and 3 evaluations. This makes sure that Sony can get the material on time and at a right price.

5. Rivalry:

The main competitors are LG, PHILIPS and SHARP. These companies also provide the similar products with Sony, such as HDTV,