Strategic Dilemmas and Challenges Faced by Sony Corporation

Case Study: Sony Corporation
Student’s Name
Institutional Affiliation
Course Number
Instructor
Date
Contents TOC \o "1-3" \h \z \u HYPERLINK \l "_Toc71187708" EXECUTIVE SUMMARY PAGEREF _Toc71187708 \h 3 HYPERLINK \l "_Toc71187709" INTRODUCTION PAGEREF _Toc71187709 \h 5 HYPERLINK \l "_Toc71187710" COMPANY BACKGROUND PAGEREF _Toc71187710 \h 5 HYPERLINK \l "_Toc71187711" PROJECT FRAMEWORK AND MODEL PAGEREF _Toc71187711 \h 7 HYPERLINK \l "_Toc71187712" System requirement PAGEREF _Toc71187712 \h 7 HYPERLINK \l "_Toc71187713" Analysis PAGEREF _Toc71187713 \h 8 HYPERLINK \l "_Toc71187714" Feasibility study PAGEREF _Toc71187714 \h 9 HYPERLINK \l "_Toc71187715" SWOT ANALYSIS PAGEREF _Toc71187715 \h 10 HYPERLINK \l "_Toc71187716" PESTEL Analysis PAGEREF _Toc71187716 \h 13 HYPERLINK \l "_Toc71187717" Design PAGEREF _Toc71187717 \h 14 HYPERLINK \l "_Toc71187718" Task Collection PAGEREF _Toc71187718 \h 14 HYPERLINK \l "_Toc71187719" Schedule Creation PAGEREF _Toc71187719 \h 14 HYPERLINK \l "_Toc71187720" Implementation PAGEREF _Toc71187720 \h 15 HYPERLINK \l "_Toc71187721" Strategy Dilemma: Challenges PAGEREF _Toc71187721 \h 15 HYPERLINK \l "_Toc71187722" Current Sony Problem Solving Strategy PAGEREF _Toc71187722 \h 17 HYPERLINK \l "_Toc71187723" Proposed Overview of the Problem Solving and Decision Making PAGEREF _Toc71187723 \h 18 HYPERLINK \l "_Toc71187724" Problem Solving Process Steps PAGEREF _Toc71187724 \h 18 HYPERLINK \l "_Toc71187725" TESTING AND MAINTENACE PAGEREF _Toc71187725 \h 20 HYPERLINK \l "_Toc71187726" CONCLUSION PAGEREF _Toc71187726 \h 21 HYPERLINK \l "_Toc71187727" References PAGEREF _Toc71187727 \h 22
Case Study: Sony Corporation
EXECUTIVE SUMMARY
For many years, Sony Corporation was leading in the electronic business. The innovation culture in the company was a guarantee of its success. Since the introduction of Sony to the international market in the 1970s, it has led its rivals. However, the strategy of introducing diversity in the business was a downfall. Despite gathering a lot of money from the step, the organization slowly started to lose the electronic market. In the quest to acquire a considerable target market, Sony lost its niche. The fall was an invitation for more rivals in the market. The competition factor reduces the bargaining power of Sony. The daily loss of money and market share lowers the company's shares, hence the need for finding an urgent solution for the company. The case study analyzes the marketing strategy and challenges, coming up with the best solution to take Sony back to the leading position in the electronic business. 
The case study will introduce the problem and how the company plans to solve it. Specifically, it mentions the best framework and solution to restore the competitive advantage in Sony. Afterward, the paper analyses Sony's company background. The section tackles its history from its introduction to the world in 1946 till its current status. It clearly describes the initial company's success and the time it started to lose its market relevance. Additionally, the case study analyzes the framework used in the project. The waterfall model works perfectly in Sony, being it is a production company. The framework will use the different steps to assure success in the process. The first step is the system requirement. At this phase, the team determines the various necessities to help in facilitating the procedures for the project. 
System analysis is also an essential step in the project development process. The phase performs the feasibility study that helps in decision making of either to continue with the project or not. It also tackles the SWOT analysis performance to help study the strengths, weaknesses, opportunities, and threats in the company's internal operation. Finally, the step analyzes the external factors through the PESTEL analysis. The combination of the three analysis tools gives a clear picture of the problem. 
System design is also vital in the project implementation process. The study divides the plan into task collection, which determines the different tasks of the team that the project management team needs to fulfill for the effectiveness of the project, and the schedule creation that allocates the time that the team should take to reach its accomplishment. Besides, the implementation of the project enables the startup of the system. The paper divides the section into three subsections. Identification of solutions facing the challenges causing the strategy dilemma is essential. The article discusses the problems facing the organization and the impact it has to on the organization. It also mentions the current solution strategy the company uses to control the destruction of the company. The last part is coming up with a proposed solution for the case study. 
Also, the testing stage is essential in identification risks in the project. The monitoring process helps in the projection of future errors in the process before it is late. The essay will also describe the project maintenance. The section describes the different ways the company can ensure good results. Finally, the paper will have a conclusion summarizing the problem and the solution.
INTRODUCTION
Sony Corporation enjoyed the market share leadership from the 1950s to the early 1990s when it started to lose its magic. The consistency in downfall in the sales led to the first significant loss of $200 million in 1993 after the instability of the two co-founders (Oliiny & Kozmenko, 2018). The company’s move to expand to other markets destabilized the company's brand. The change of concentration opened a path for rival companies to outdo Sony in the electronic business. The emerging of new Competition continually led the company to experience a day-to-day market downfall. Through the waterfall project model can help solve the problem. The tackling of all the steps directs the company to a successful solution. The company will follow a step-by-step process to establish the most suitable solution for the company.
COMPANY BACKGROUND
Sony Corporation is the world's most recognized electronic company. The Japanese company's growth is evident in their product's inventions in the last six decades. Since Sony's launching in 1946 in Tokyo as Tokyo Telecommunications Engineering Corporation, the company has been expanding continuously till it got to capture the entire world. The company was cofounded with Akio Morita and Masaru Ibuka. Its global journey was initiated in the 1950s to change the name to Sony, a combination of American word for sound "Sonny" and Latin's word "Sonus." In 1960, Sony took the brave step of opening a branch in the United States of America. Eight years later, the company opened another chapter in the United Kingdom. Oliiny and Kozmenko (2018) say that the continuous growth for the company pushed it to open more branches in different companies.
The company's first product was a TR-55 Japan's first transistor radio in 1955. It quickly invented the pocket-sized transistor radio to attract the market of music movers that are always traveling. The continuous innovation story in Sony took a big step in the 1964 New York World's fair after inventing the MD-5, the first translator desktop calculator. In 1968, the company moved to the invention of Trinitron color television that facilitated 40% of Japanese households with color television by 1971. The positive market acceptance inspired the company to introduce a video cassette recorder (VCR), leading to the introduction of Betamax VCR in 1975 that was considered the best and most expensive VCR technology in the world (Nakamura et al., 2019). The Betamax top the market till the introduction of VHS, causing a market share. The pressure motivated the company to invent a better VHS in 1988.
In 1978, Akio Morita was skeptical in the production of Walkman portable that could only play and did not record. The device's success was critical to him that he was willing to resign if it fails. Additionally, the production agreement between Philips Electronics NV and Sony, LED to development of the first Compact disk (CD) player and Digital videodisk (DVD) that challenged many electronic companies (Oliiny & Kozmenko, 2018). In the 1980s, Sony leaders gained interest in the entertainment business, and they took the first step of buying CBS Record Group and the Columbia Pictures Entertainment, inc. The stage ignited opposition in America. The leading cause of the problem was Morita's contribution to the Japanese essay "The Japan That Can Say No" in 1989. The paper claims that the Japanese are independent and more robust than America. The 1990s became so tricky for Sony after the stroke of both the co-founders Ibuka and Morita. The retirement of Morita in 1994 and his death in 1999 led to the decline of the company, recording the first loss of $200 million in 1993.
The many challenges did not discourage the company from innovations. In 1994, the PlayStation was consoling the company. The company's gaming unit expansion led to over 10% of the revenue by 2002. Sony Online Entertainment was also a profitable venture, specifically the virtual reality games. The process of reviving the company mainly focuses on lowering costs and streamlining operations. Moreover, they came up with cost-cutting measures by selling some of the company's estates and its American headquarter in New York City at the cost of more than $ 1 billion (Nakamura et al., 2019).
PROJECT FRAMEWORK AND MODEL
Selecting the suitable project model methodology is vital in the delivery of excellent results. A successful project must go through all the steps to project any risks and solve them before they occur. Nakamura et al. (2019) assert that, because Sony Corporation is a manufacturing company, the Waterfall Methodology is perfect for problem-solving in the company. The methodology framework requires the finishing of one step before attempting to start the next one. The process insists on documentation to guarantee continuity of the project in case of employee replacement. Despite the complexity associating with the methodology, it assures tackling all the challenges that lead causes problems in the company. To attain success in the process, the project management team must follow all the steps in waterfall methodology.
System Requirement
The success of any development project requires several tools. According to Oliiny and Kozmenko (2018), a project management team has the role of analyzing the project and recognizing all the requirements to get the process to completion. The early assembling of the entire essential for the project reduces the risks of failing to accomplish the project's goal because of a lack of resources. Sony's reclaiming of the competitive advantage depends on various tools to guarantee a swift process. First, the creation of a project management team is necessary. The management needs to carefully select a group of people that can work in unity to establish perfect marketing and innovation strategies (Nakamura et al., 2019). The team members must lean on each other's strengths with the core purpose of developing a single solution for the problem.
Additionally, establishing a perfect I.T. system and infrastructure quickens the prestige reclaiming process for Sony Corporate. The importance of I.T. in the project is unavoidable. Calvard (2018) believes that Sony, being a global company, needs I.T. to capture the problem from different angles. It is hectic for the team to move from one country to another in the research process. Through online interviews and questionnaires, the team can avoid wasting a lot of time. Besides, the online conference meetings can be handy in the involvement of the management teams from other countries.
Finally, the manufacturing and production tools help in the testing process project. The cause of the main problems in Sony being the reduction of the invention; production might be an essential way to solve the problem (Calvard, 2018). The team must be ready with all they need to test the final effectiveness of the solution. Any project must undergo an evaluation before its implementation. The subjection of the process to different tests predicts the final results of the actual project.
Analysis
The problem analysis process of the project determines the success or failure of the project. A flawed analysis presents the wrong problem, hence makes the entire process a waste. Different factors and tools help in satisfying the process. Any organization needs to select the means of analysis with keenness.
Feasibility Study
The feasibility study is viable in deciding to either continue with the project or start another one. It analyzes the risks in the project. Sony has different proposed projects that can help in determining the success of the project. The analysis process, in this case, will follow the four crucial areas to project whether to continue with the project or not. Below are the areas of coverage in the feasibility studies of Sony.
* Economic Feasibility: After creating the budget that the project is expected to spend, the project is more profitable than the cost of the process (Calvard, 2018). The projection shows that the project will be a success in the end.
* Technical Feasibility: The study helps determine the project's risks in the solution-seeking process. The analysis project shows the main threat in the project is failure to capture the large users of Sony (Calvard, 2018). The risk can be solved by the inclusion of different I.T. tools in the process. The online interviews, questionnaires, and conferences create a solution to the problem.
* Operational Feasibility: The study is significant in the prediction of the efficiency of the project. The research shows that the project ensures it delivers the best results by using step-by-step problem-seeking procedures, thus monitoring the process and reducing chances of failure (Calvard, 2018).
* Schedule Feasibility: The study concentrates on time estimation and resource optimization. The team has a perfect timeline running for eight months. Each step has a budget allocation that helps in avoiding wastage.
SWOT ANALYSIS
Strengths
* Quality Products: The consistency in developing good quality product places gives the company a competitive advantage. The creation of distinguishing products makes the company attract many customers (Calvard, 2018).
* Wide Variety: the capability of Sony to create a wide range of products expands its target market. The prominent market creates awareness of the company growing its brand.
* Global Experience: Sony being one of the first countries to capture the world's electronic market is advantageous. Its international name is enough convincing factor for the clients.
* Customer Loyalty: The ability for Sony to create products in series assures customer loyalty. For instance, the Play station games attract customers. The reveling of the product in series creates the desire to continue playing; hence they have to stay with its products.
* Highly innovative: Sony is a company that entirely depends on innovation for its growth. The significant innovations since its launching have convinced many customers to stick with the company.
Weaknesses
* Negative Publicity: The 2014 hacking of the company revealed most of their trade secrets, hence creating a strained relationship with other companies. The lousy name made most customers lose confidence in the company, thus trying the rival p...