Business Strategy of Sony Ericsson


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Business strategy forms the core of every business decision making process. The top management of every company is concerned about the formulation of proper business strategy so that the objectives of the firm can be attained effectively. A business strategy entails a number of things which are discussed in the ensuing paragraphs. The case of Sony Ericsson has been discussed and the different strategies adopted by it together with its effectiveness.

Task 1

1.1 Alternative business strategies for Sony

The means of accomplishing the corporate goals of any corporation are provided by the business strategy. There are a range of strategies present which can define the success of a firm. These are retrenchment, limited growth and substantive growth. Taking the case of Sony Ericsson and having reviewed is mission and vision of a joint venture, the strategy of substantive growth is the most suitable for the organization. This strategy primarily lays focus on vertical and horizontal integration of the organization (Hensmans, Johnson and Yip, 2013). Main goal of substantive growth strategy is the expansion of the product line of Sony Ericsson in addition to the company line. Corporate line can be augmented by balanced, backward or upward integration with other firms. To facilitate vertical integration, the company has established ties with Toshiba and IBM. The main intention of such integration is the development of the new products to be launched in the ever changing electronics market. In addition to this vertical integration is also focused on augmenting the manufacturing capabilities and capacities in core material for the production system of the organization. This alternative strategy is bound to improve the quality of products whilst promoting the prevailing technology of the company (Malphurs, 2013).

For the smooth functioning of this joint venture, the company can also follow a diversification strategy. Currently, Sony is producing 30 percent of its revenue from area other than its core domain. Hence, diversification in other areas can prove to be profitable for this corporation. Firm can diversify its product portfolio in motion pictures, music, games and other areas for amplifying the market share and size in the industry. Eventually, by the usage of vertical integration and strategy of diversification, Sony Ericsson can accomplish its goals of a successful joint venture (Elbanna, 2010).Strategy assignment help available by expert writers at Assignment Desk.

In addition to this, the firm can use other growth strategies as well such as that of operational excellence, customer confidence and product leadership.

1.2 Suitable future strategy of Sony

Sony Corporation enjoys a huge market share in the UK electronic market owing to its leadership position therein. The company has a clear vision of bringing in innovative designs and products by using the most avant-garde technology which can influence more and more consumers together with providing benefits to the overall community. Going by the nature of this vision, substantive growth strategy can be touted to be the most optimal strategy for the organization. Substantive growth strategy is focused on the diversification and integration which augment the market share of the company in various economic industries (Malphurs, 2013).

Huge initial investments in research and development and information technology are demanded by substantive growth strategy and this results in high production capacity of the organization. As the corporation is interested in penetrating into new markets therefore diversification and vertical integration are most appropriate as they will facilitate a new product line for an entirely new market segment (Adeyoyin, 2005). Competitive advantage will be gained by this strategy in the technological as well as other areas of Sony Ericsson. It assists in developing knowledge, expertise, capabilities and skills of the workers. With help of this integration, even the existing rivalry and number of rivals will get alleviated. Hence, substantive growth strategies are the most appropriate and suitable for Sony Ericsson for the purpose of improving their future (Wittmann and Reuter, 2013).

Task 2

2.1 Strategy implementation for Sony

The substantive growth strategies need to be effectively implemented, monitored and evaluated for the success of Sony Corporation. Strategic execution is a methodical process which locates the strategic action and plan in an effectual way for accomplishing the goals of the strategy. It is mainly focused on the allocation and management of all the available resources of the corporation (Malphurs, 2013). Effectual accomplishment demands successful leadership styles, knowledge and skills together with motivation of the employees of Sony Ericsson. This process sheds light on development of some novel divisions in the corporation, sales territories in the whole country, hiring and selecting new employees for new divisions as per their requirements, novel values in policies and procedures and novel pricing mechanism for the organization (Paswan and et. al., 2011).

Sony Ericsson has operations in more than one sector, therefore execution of the future business strategy involves an effectual involvement of each and every employee of the firm. Every individual working in the company has immense duty and responsibility in respect of their job role and hierarchical level. Execution process manager has an important role to play in the allocation and delegation of roles and responsibilities to each and every worker of the corporation (Smith, 2013). Supervisor of this process is required to concentrate on equal involvement of the whole workforce, proper motivation and effective communication as well as effectual monitoring and control of the performance of the company. Employees are responsible for the maintenance of healthy working environment, effective communication of all the relevant information among team members, valuable feedback and following all the applicable standards and policies for this process (Steiner, 2010).

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Besides this, Sony Ericsson also needs to discharge different corporate social responsibilities, follow rules and regulations laid down by the government, follow taxation norms and other legislations for the different operations of the corporation, ethnicity in every operation and distinct performance standards. Corporate Social Responsibility is focused on the relation with the stakeholders of the company (Malphurs, 2013). In accordance with the CSR norms, Sony ought to adopt all those policies and procedures which are important for the interest of its stakeholders. Important stakeholders of the company are its management, suppliers, employees, government, customers, investors, partners and the general society on the whole. For maintenance of effectual relations with the employees, firm must follow adequately the employment rules and regulations, effectual salary policy, proper training and development program for all the employees of the company. In addition to this, high level of coordination between senior management and the company’s employees is also very imperative and a big challenge at the same time (Bryson, 2011).

2.2 Required resources for strategy implementation

As stated above, the substantive growth strategy is the most appropriate keeping in mind the mission and vision of Sony Ericsson. For the effectual execution and incorporation of this strategy, the company is bound to have several resources like physical resources, technological resources, human resource, financial resources and operational and production resources. In addition to this, certain knowledge, skills and intellectual property is also needed to effectively incorporate the growth strategy.

  • Human resources are the most valuable asset required for the smooth functioning of every operation. Strategy execution process results in a number of changes in various functional and operational areas of the organization which need high number of employees so Sony Ericsson needs recruitment of new employees to satiate the needs of strategy implementation (Simerson, 2011). This process mainly emphasizes on diversification and vertical integration in the product portfolio which necessitates high skills and knowledge. For achieving this requirement, Sony must hire the right kind of people in the right place. The Human resources help the company in determining its strategy and extending its plan and eventually assist in the execution process through timely feedback and follow up (Hensmans, Johnson and Yip, 2013).

  • Technological resources are also imperative for the attainment of goals of the corporate strategy of the company. Growth in the operations and production system as well diversification of the existing portfolio requires advanced technology. In the present situation of the electronics market, technology is rapidly changing. Hence, to be able to meet the demands and needs of the consumers, the firm should keep itself updated with the latest trends. For this purpose, the corporation must adopt newest technological resources available in the market to enable effective execution of their strategies (Smith, 2013).

  • Huge investment and production and operations department of the company is required for the development of new product line. As a consequence of this Sony Ericsson requires huge sum of money which can be acquired through the external and internal sources of finance available with the organization. The vision of the company is focused on developing new products and designs for the customers, which requires the adoption of new technology. Hence, to be able to manage all these expenditures, Sony Corporation requires monetary sources. The organization can acquire necessary funds from various financial sources like borrowings and lending, issue of equity and preference share, debentures and long term loans (Adeyoyin, 2005).

2.3 Targets and timescales of Sony for achievements

An effectual control and monitoring system is highly crucial for successful implementation of strategy. The monitoring and control framework is focused on the actual versus planned performance mapping, time scale and targets. Time scale and targets can be determined by the mission and vision of the Sony Corporation. This entire process of corporate strategy planning and implementation can be finished in a period of three months. The planning and execution phase will be the most time consuming during this period.

Sony Ericsson has the intention of developing innovative and avant-garde consumer electronic products. Apart from this, the organization has an aim of establishing its presence in the international market. If the corporation complies with the aspects of continuous innovation, sustainable development and provision of effective services to the consumers then the above aims can be fulfilled. In addition to this, the company also has the mission of taking the Sony Ericsson brand name in the list of top five international companies. Within the time period of three months, the above mentioned objectives can be attained if monitoring and control are effectively done.


Thus in conclusion it can be stated that the strategies of diversification and substantive growth will be the most appropriate for Sony Ericsson keeping in lines with its vision and mission. IN addition to this, the availability of proper resources is necessary for effective implementation of the business strategy together with maintaining the interest of the stakeholders.


  • Adeyoyin, O. S., 2005. Strategic planning for marketing library services. Library Management. 269(9). pp.494–507.
  • Bryson, M. J., 2011. Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement. 4th ed. John Wiley & Sons.
  • Elbanna, S., 2010. Strategic planning in the United Arab Emirates. International Journal of Commerce and Management. 20(1). pp.26–40
  • Hensmans, M., Johnson, G. and Yip, G., 2013. Strategic Transformation: Changing While Winning. Palgrave Macmillan Publication.
  • Malphurs, A., 2013. Advanced Strategic Planning: A 21st-Century Model for Church and Ministry Leaders. 3rd ed. Baker Books.

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