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Business Operations Management


International management is considered as the practice of managing business operations within one or more country. However, it is essential for the business professionals to be familiar with the language, culture, economic and political environment so that MNC's can actively carry out their trade related activities (Forces driving globalization. 2015). The current study emphasizes upon Sony case study and thus identifies that Sony Corporation which is one of the world's successful consumer electronics company. Firm also enables to focus upon creating a strong sustainable competitive advantage and maintain effective culture and internationalisation strategy so that best results can be attained.


As per the case of Sony In The New Millennium, Sony possess varied resources, capabilities and competencies in regard to grow the business successfully in the competitive consumer electronics industry. However, being a non-typical Japanese corporation Sony's possess an effective culture within its firm that attract worldwide market (Eshun, 2009). Business does not limit its growth till Japan but entered US market and attain growth in different markets as well. Following are the different resources, capabilities and competencies such as-


Resources are considered as the factors that firm own's controls and uses for the aim of creating value. Sony's different tangible and intangible resources assists in determining its distinctive competency and lead to maintain competitive advantage. Tangible resources of Sony possess its assets which are financial in nature or have physical properties. It also involves land, building, machinery and equipment in order to attain high profits and sales. Further, intangible resources involves non-physical assets which Sony could use to produce products or services that are demanded by consumers in market (Benett, 2002). Sony brand is linked with superior quality, innovation and style. Business also launches effective products and for that they carry out effective marketing efforts and product launches. Sony manages to create several successful sub brands and launched numerous of products to attract consumers towards the business.

Throuygh referring to the case study it can be evaluiated that Sony possess large number of skilled employees who have expertise and knowledge to employ best resources in worldwide market. Management of firm effectively coordinate with the employees and help them in exchanging the ideas so that culture of the firm could be maintained effectively. However, business utilises the human resources effectively in regard to deliver quality consumer products and services. There are different competitors available in market that give tough competition to Sony and impacts the business to attain desired results. Hence, business aims to grow alliance and develop innovative Sony PlayStation and other consumer electronics goods (Fahey and Narayanan, 2013). However, it also contributes to Sony's different tangible and intangible resources and help firm to sustain and maintain distinctive competency among rivals that in turn helps to attain sustainable competitive advantage.


Evaluaitng from the case it cna be referred that capabilities can be stated as the terms of the types of activity that helps firm to perform its activities and create value. Therefore, Sony performs a wide range of different products or services to create variety of actions in order to create value for its customers. Capabilities helps in creating value for its customers and in turn contributes to its competitive advantage. However, business capabilities possess an effective hierarchy of knowledge integration so that best results can be attained in market (Cuyvers and et.al., 2011). Further, at the lowest level, Sony's workers are required to maintain individual capabilities so that specialised knowledge of the market can be attained and provide best products or services accordingly. Thus, it assists Sony to utilise this knowledge and the skills of workers in regard to manufacture and market its products or services and create value for its clients.

Sony has high market share in consumers goods market and attract worldwide consumers by segmenting the target market into different categories. It comprises of televisions, video and audio products. However, business faces varied issues at the starting and then gradually increases the product capability by improving its technology so that worldwide consumers can be attracted towards firm. Through referring the case, business introduces its first product that was transistor radio and television, VCR, Walkman, video camera etc. Since then business enhances its market share and launches various innovative products in market so that sales and market share of firm can be enhanced. Sony that launches its computer market with its launch of the VAIO and thus entered into mobile phone industry combining with several products to enhance capabilities.

However, the core capability of Sony lays in its inventiveness and creativity manifested in the succession of such products that are into existence. Main significance of Sony is its intellectual property and the number of patents its possess as a fundamental issues exists within the poor patent protection according to the complex consumer electronic products industry. Further, Sony also plans to enter into gaming industry and launched Sony PlayStation which proves to be one of the its strong capabilities (Yeung, 2005). It helps in attracting wide range of consumers and enhance the market share of firm. Sony continuously upgraded its technology with latest development so that best results can be attained.

Another capability of Sony is to expand its operations in entertainment industry i.e. music and film industry. Such division helps Sony to attain success and enter into worldwide market. However, business also continuously upgraded its technology in relation to enhance latest development and achieve success. Business also enters into Hollywood industry and enhance its profitability. Combination of Sony's different capabilities with its different resources assists in creating its sustainable advantage so that best results can be attained. It allows firm to maintain its distinctive competency and provide value to its customers (Wang and et.al., 2010).

Core Competencies

Core competency of business can be stated and the central set of knowledge within firm at he time when allows the firm to create superior value than other competitors. It may be either internal or external but needs to be unique and apply wide range of products to consumers. Sony's core competency consists partly of its ability to innovate and come up with the revolutionary products and its ability to achieve product differentiation. Main competency of firm is its ability to improve its size of products and attract worldwide customers in regard to provide them convenience and creates value (Lehner and Wurzenberger, 2013). Improving business performance in market helps in creating sustainable competitive advantage so that Sony can outperform its rivals and measures the goals so that set results can be attained. It is essential for firm to combine of the superior efficiency, superior quality, innovation and customer responsiveness that influences firm to attain the ability and build a sustainable competitive advantage in market.

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Overall, it can be stated that as per the reference of case study, Sony possess effective quality in regard to manage the combination of its resources, capabilities and core competencies to attain sustainable competitive advantage in regard to provide value to its customers. Further, it can be stated that business successfully helps in attaining competitive consumer electronics industry in regard to develop effective corporate culture in market (Bradly, 2005). Through such way it benefits firm to enhance its sales and proficiency so that success can be attained. Further, it is essential for Sony to improve its corporate culture which results into expanding the business operations in consumer electronics market. Therefore, Sony's resources, capabilities and competencies depicts the business to attain success in the competitive market and business focuses upon attracting worldwide market instead of only Japan. Hence, it is essential for Sony to maintain its effective corporate culture as there are different human resources employed in regard to deliver best services to consumers (Peng, 2013). Therefore, it is essential for enterprise to focus upon improving culture and attain desired results.


As per the case of Sony, Internationalisation strategy focuses upon going global and entering into different businesses so that best results can be attained. With the help of such strategy it aids in obtaining revolutionary changes and introduce innovative products in market which attracts consumers towards firm. In 1957 Sony undergoes a five year contract with US company Delmonico in regard to act as the sole US distributor for its products i.e. transistor radios (Alon, 2003). However, the relationship between the firm and distributor proves to be ineffective as Delmonico affects the operations of firm in market. Sony also establishes its overseas sales room in luxurious locations such Paris, New York etc, in order to develop brand image in market. Internationalisation strategy directly leads firm to improve its business and consumer culture. In the year 1970, Sony became the first Japanese company to be listed in New York Stock Exchange market (Benett, 2002). Through adopting diversification strategy it aids in implementing various process so that Sony launches different products in market which includes a range of items such as television, PlayStation, CD's etc. However, in the early 1990's Sony had over 600 subsidiaries with around 70 manufacturing plans all around European and East Asian countries including China as well as US.

Sony also carries out international joint ventures and alliances in order to achieve number of its purposes. Further, business also thinks to enter into diversification and enter into life insurance industry through joint venture that creates Sony-Prudential Life Insurance Company in the year 1976. eventually acquiring CBS records which started as a joint venture in 1968 in the recording business (Cuyvers and et.al., 2011). Sony also formed alliances with Texas Instruments in semi-conductors and with Philips to promote CD players and compact disk format within music industry. All these strategies helps Sony to evolve them as an internationalisation firm and attain high market share. While, it is not considered as a dramatic paradigm shift in terms of Sony. Business eventually enters into different operations and develop internationalisation strategy so that they can improve their operations in market. However, it can be stated that internationalisation strategy helps Sony to attain desired results (Fisher and Bonn, 2007). Thus, all such factors leads Japanese firm to attain success within different sectors such as motor cycles, automobiles, consumer electronics and cameras. Up to a great extent, it is essential for business to adopt ethnically heterogeneous products and possess little contact with foreigners. Thus, due to all such reasons, business enters into international market and thus carry out the operations effectively. Diversification strategy adopted by Sony is useful in expansion which helps firm to expand its operations in worldwide market. Through adopting internationalisation and diversification strategy within the period of 1987-2003 it helps firm to improve its evolutionary changes and does not mark its dramatic presence which affects business in international market.

It can be evaluated from the case that, within the year 1987, Sony launches its business into Hollywood industry as Japanese corporate culture has generally preferred organic wholly owned foreign direct investment to the use of international mergers and acquisitions. With regard to this, Sony stunned Japan with its 1987 acquisition of CBS it helps business to become worlds largest record company for $US 2 billion and 1989 purchase of Columbian Pictures (Lehner and Wurzenberger, 2013). It also helps in increases the US market and Sony planning to establish its market in America and attain desired results. Further, in 1990 Panasonic acquisition of MCA appeared to validate Sony's move and argued that Sony's Hollywood adventure but Sony got bankrupt in 1995. Not only Sony found $US 3.4 billion excessive but there are different other problems lead firm to reduce its accounting value in entertainment market.

Moreover, it could be assessed that Sony's diversification strategy was na innovative rethinking of traditional industry boundaries and thus help firm to attain competitive edge in market. Diversification strategy adopted by business into the entertainment industry could be seen strategically as a vision of multimedia future in which Sony controlled the high value software products (Wang and et.al., 2010). Further, Sony adopts diversification from consumer electronics industry to film production was an highly risky step and thus another problem faced was due to cultural distance among corporate culture of Japan and California movie making business. In the year 1990's Sony's products portfolio ranges from industrial products and enhances the market share of firm.

In the year 1980 Sony launches its Walkman success and in 1900's PlayStation was another successful year in Sony's history. All this businesses helps firm to improve extraordinary achievements and thus improve the business in worldwide market. Further, company also enhances its business development and launches VAIO laptop so that consumers can be attracted towards firm. All the identified changes within the strategy carries out evolution and helps firm to improve its market performance and thus set results can be attained. However, it is not any dramatic changes but a serious step towards internationalisation and diversification which helps in evaluating changes so that best results can be attained. It is also crucial for enterprise to focus upon the business success in future and thus undertake effective fields in regard to invest and thus better results can be attained.

As per the case, Sony diversifies its business products from electronics consumer goods to entertainment and music industry. Thus, it would benefit firm to improve the market performance and achieve desired results. Therefore, it would help firm in enhancing the business operations towards international market. Such strategy is useful which would help firm to enter into global market so that wide range of products or services can be delivered to consumers in regard to enhance the market share of firm (Englyst and Acur, 2006). With the help of this Sony aims to attain competitive edge in market and thus provide value to its customers. Management of Sony aims to identify the diversification strategy and invest into different businesses such as Life Insurance, Entertainment, Music etc.

Through reviewing the Sony's strategies in market it involves different internationalisation and diversification strategy so that in the period of 1987-2003 business aims to consider specific strategic changes and attain revolutionary business so that tough competition to be given to rivals (Eshun, 2009). It also helps firm to become the first Japanese company to be listed in New York Stock Exchange. Sony started its business from preparing radio transistors which was not that much successful in market. Later it prepares television and gradually increases the product line in order to attain international market. Thus, it helps business to enhance its brand image in market. Further, diversification strategy is also being adopted by business that helps Sony to change its product line from consumer electronics industry and entering into entertainment, life insurance and music industry. Through diversifying the product line it aids business to enhance the brand image and popularity so that large number of consumers can be attracted and attain desired results.


It can be concluded from the report that Sony adopts various resources, competencies and capabilities in regard to attain success within the competitive consumer electronics industry. However, it is significant for enterprise to develop innovative corporate culture so that they can produce varied range of products or services which results in improving business performance in market. Also, identifying business strategies such as internationalisation and diversification and attain evolution and growth in the market. Within the period of 1987 to 2003, Sony attains different innovative range of products or services so that business goals could be attained.


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