Sample Essay on PESTEL Analysis on Sony Corporation

PESTEL Analysis on Sony Corporation

PESTEL analysis on Sony Corporation entails analysis of factors that have significant effects on this organization. Sony Corporation is a multinational company with business operations in different parts of the world. However, for this company to succeed in its operations it must understand political, economic, social and technological factors that affects its operations.

Before venturing into a new market, the company must identify and understand these factors. Even when introducing any new product, this company has to understand these factors to succeed in its operations. This will enable it to overcome challenges that these factors may pose to its operations.

Political factors

These are government and legal factors in any country where Sony Corporation has business operations. Every country has regulations and rules that are set by its governments that business entities must adhere to. Before venturing into a market, this company must know and adhere to these regulations and rules. Sony must analyze government behavior and political conditions in every country and examine them carefully to avoid controversy with authorities during its operations in that country.

Economic factors

Among the economic factors that Sony Corporation must analyze in any country before venturing into the market include inflation, economic situation, interest rates, exchange rates, patterns in the stock market and credit availability among others. Activities of Sony Corporations can be affected by these factors negatively or positively. For this reason, this company must analyze material and labor requirements, inflation and economic situation in a county and time its entry in the market.

The Corporation must also bear in mind the fact that when economic situation in a country is good, then it will be good for competitors as well and it must come up with appropriate competitive strategies.

Social factors

Among the social factors that Sony Corporation must consider before venturing into a new market or to enhance its competitiveness in its current market include demographics, lifestyles, consumer behavior, consumption patterns, religious priorities and income levels among others. Most products of Sony Corporation are priced higher than those of competing brands. However, the company conduct extensive research to know when to cut prices and by how much.

It also analyzes lifestyles of consumers to know when and where to introduce which product.

Technological factors

There are several competitors of Sony Corporation. As such, the company must engage on research to develop innovative products and consumers consider better than those of the competitors. It also learns from its past failures and mistakes while manufacturing new products. It also uses technology to market its products as the best brand in the market.

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