POLITICAL FACTORS
Political factors are subject to change for Sony Corporation, as the Government has the authority to adjust policies and regulations that may impact Sony at any given moment. Sony’s trading prospects could improve if the credit crunch and recession diminish. However, this also implies that Sony’s competitors are experiencing the same benefits. Consequently, Sony must strategize on ways to maintain a competitive edge. Additionally, Sony Corporation is influenced by new international policies.
Sony’s international operations are vulnerable to government trading restrictions due to its heavy reliance on trade. The government has the power to change various factors such as minimum wage, tax, and VAT, among others. Sony must prioritize these aspects in order to adapt to significant global changes. According to reports, the minimum wage has increased from over three pounds to five since 1999.
ECONOMICAL FACTORS
The economy is currently in a severe downturn, which is considered the worst recession in history. There has been a decline in economic growth, indicating a negative growth rate. It is expected that both the recession and credit crunch will continue into the next year.
Economically, several changes can occur, including fluctuating interest and exchange rates. As the recession is expected to diminish in the future, exchange rates may gradually decrease. Sony should also be mindful of any trading restrictions imposed by the government. As an international company, Sony may encounter varying exchange rates depending on the countries they trade with. If exchange rates have notably fluctuated in different countries, Sony would need to assess the prices at which their products are sold and evaluate if it is viable.
SOCIAL FACTORS
Sony Corporation is expected to thrive socially due to its burgeoning reputation for providing high-quality products and services. With the vast improvement in technology, Sony may face new competitors that could potentially affect them. To stay ahead, Sony must continue to innovate and create groundbreaking equipment that will keep their company thriving.
Companies like Microsoft and Apple would do the same. Sony must learn the trends of people in order to create products that can appeal to them. For instance, many young adults enjoy listening to music, so Sony would develop products that allow people to listen to music anytime, anywhere. People have different preferences in style, trends, activities, etc. Therefore, Sony must also enhance their innovation so they can continue satisfying customers and adapt to the changing times.
TECHNOLOGICAL FACTORS
It is crucial to analyze the technological factors impacting Sony Corporation. The company relies on technology extensively for its daily operations. Utilizing technology enables Sony to enhance productivity on a global scale. To maintain a competitive edge, Sony utilizes advanced technology and continuously upgrades its systems. Additionally, Sony leverages new technology for research and development, allowing them to create innovative products by incorporating customer insights and conducting market research.
