Lucy Wacuka Mwaura

 Sony Case Study Name Institution Sony Case Study The microenvironment of Sony encompasses how the society perceives allocation of resources. It involves factors related to usage and availability of resources that impact the business and individual. A company microenvironment consists of the customer, the company, suppliers, intermediaries, public and media, and the employees. The customer market is usually divided into five main categories, including consumer markets, business markets, reseller markets, government markets, and international markets. The customers make the most important part of Sony’s microenvironment. Customers loved the company and saw its brand as a symbol of style, innovation, and high quality. The company had a huge customer base, which changed over time due to the company reluctance to adapt new technologies. The reduction in the customer base and the substitution of Sony products for other similar products in the market directly impacts the company’s profit. Sony has experienced a migration of customers to other brands in the market, such as Apple. Another micro economic factor for Sony is competitors. Over the period, the company has faced stiff competition from companies such as Samsung, Apple, LG, Hisense, TCL, and Haier. Although Sony was a market leader in the electronic business, competitors took over because the company arrogantly refused to embrace new technologies. The company itself as a microenvironment failed to keep its eyes on the market. In other words, it failed to study the market changes and the changes in consumer needs and preferences. Failure to closely observe the market led to a failure in adapting to the changes occurring around the company. As a result, the company could not keep pace with competition although it still maintained those capabilities that once made it great. Macroenvironment is those factors that are external and beyond the control of the company. Among the most notable macroenvironmental factors that affected the performance of Sony during the period of the case are economic factors such as recession. The company was hit by the great recession, which affected the spending patterns and purchasing power of consumers. As a result, the company suffered huge losses. Another major macroenvironmental factor that affected Sony during the period was technological changes. New and better technologies were becoming available in the market, and the major competitors of the company were adapting them. However, Sony was left behind as far as adapting the new technology was concerned. Sony was built on innovative design and engineering of standalone electronics such as TVs and CD players (Kotler & Armstrong, 2015). Nonetheless, as digital and Internet technology continued to grow, it created a mobile and connected world, and standalone hardware became quickly substituted with new connecting content, media, and technologies. The entertainment world changed into shared content and digital downloads using iPods, tablets, PCs, smartphones, Internet-ready TVs; however, Sony did not adapt as quickly. As a result, its competitors quickly took over the market. Another natural disaster that affected the company was the floods that occurred in Thailand, causing a shutdown of the company plants and disrupting production of Camera. Sony was also affected by environmental factors. In 2011, Eastern Japan was affected by a tsunami and an earthquake, something that led to closure of 10 Sony’s plants. As a result, the flow of batteries, Blue-ray discs, and other Sony items was disrupted. The company also faced a hacking attack on its Internet entertainment services, and this forced the company to close down its Play-Station Network. About five months after the tsunami, rioters set fire in London, destroying the company’s warehouse and about 25 million DVDs and CDs. References Kotler, P. & Armstrong, G. (2015). Marketing : An introduction. Upper Saddle River, NJ: Pearson.