Assignment#2

1) Choose a parent company with at least 4 SBU’s

I choose Sony a parent company. Sony is a well-known multinational corporation that

operates in various industries. Here are four of Sony's strategic business units (SBUs):

Sony Mobile: This SBU refers to the Sony Mobile Communications Strategic Business Unit.
This unit is responsible for developing and marketing Sony's mobile devices, including
smartphones and tablets.

Sony Music: This SBU focuses on the creation, production, and distribution of music. Sony
Music is one of the largest music companies in the world and has a diverse range of artists
and genres under its circle.

Sony Pictures: This SBU focuses on producing and distributing films and television shows.
Sony Pictures is known for its blockbuster movies and hit television shows, such as Spider-
Man, Jumanji, and Breaking Bad.

Sony PlayStation: This SBU focuses on the production and sale of gaming consoles and
related software. Sony PlayStation is one of the leading gaming brands globally, with popular
consoles like PlayStation 5 and an extensive library of games.

2) Company History

Sony Corporation is a multinational conglomerate corporation based in Tokyo, Japan. It was

founded in 1946 by Masaru Ibuka and Akio Morita and originally started as an electronics
store in Tokyo. Today, Sony is one of the largest manufacturers of consumer electronics,
gaming consoles, music and film production, and entertainment companies in the world.
Sony's product includes a wide range of electronics such as televisions, smartphones,
cameras, audio equipment, and gaming consoles. It also owns Sony Music, Sony Pictures
Entertainment, and Sony Interactive Entertainment, which are responsible for producing and
distributing music, films, and video games. Sony is known for its innovative products and
cutting-edge technology. Some of its most popular products include the PlayStation gaming
console, the portable music player, and the Sony digital cameras. The company has a strong
brand identity and has been recognized for its contribution to the technology industry.

3) Actual idea of the company

Sony Corporation operates in a wide range of industries including electronics, entertainment,

gaming, and financial services. The actual idea of Sony is to use their expertise in technology
and innovation to create products and services that improve people's lives. Sony's mission
statement is "to be a company that inspires and fulfills your curiosity." The company aims to
achieve this by developing innovative technologies and products that enable people to
connect with each other, entertain themselves, and pursue their interests and passions. In
particular, Sony is known for its expertise in audio and visual technology, and has developed
many popular products such as the Sony Walkman, the PlayStation gaming console, and the
Sony Bravia line of televisions. Sony also has a strong focus on sustainability and corporate
social responsibility. The company has set goals to reduce its environmental impact and is
committed to promoting diversity and inclusion in its workforce and throughout its
operations. Overall, the actual idea of Sony is to use technology and innovation to create
products and services that enhance people's lives, while also being socially responsible and
sustainable in its operations.

4) Selected SBUs portfolio

Sony Mobile, Music, Pictures, and PlayStation are all Strategic Business Units (SBUs) under
the larger Sony Corporation. Each SBU has its own portfolio of products and services, as
follows:

1. Sony Mobile: Sony Mobile Communications Inc is a subsidiary of Sony that produces
smartphones, tablets, and accessories. Some of their popular smartphone models include the
Xperia 1 III, Xperia 5 III, Xperia XZ3, Xperia XA2, Xperia L4, Xperia XZ2 Compact,
Xperia XA1 Ultra, Xperia Z5 Premium, Xperia C5 Ultra, Xperia Z3 Compact.

2. Sony Music: Sony Music Entertainment is a global music company that manages the labels
and publishing divisions of Sony Cornoration Some of the notable labelsunder Sony Music
include Columbia Records, RCA Records, and Epic Records, Arista Records, and Legacy
Recording. Some of the notable artists under Sony Music's portfolio include Beyonce, Adele,
Bruce Springsteen, Mariah Carey, Travis Scott, Justin Timberlake, Alicia Keys, Barbra
Streisand, Harry Styles, and Celine Dion. Overall, Sony Music's portfolio is diverse and
includes a wide range of popular music genres and artists.

3. Sony Pictures: Sony Pictures' portfolio includes a wide range of genres including action,
drama, comedy, horror, and animation. Some of the most popular movies and TV shows in
their portfolio include Spider-Man, Jumanji, Breaking Bad, The Crown, Once Upon a Time
in Hollywood, Men in Black, Ghostbusters, Bad Boys, and The Karate Kid. Sony Pictures
also has several production companies under its umbrella including Columbia Pictures,
TriStar Pictures, Screen Gems, and Sony Pictures Animation.

4. PlayStation: PlayStation is a gaming brand that offers a range of gaming consoles,

accessories, and software. The PlayStation products include the PlayStation 5, PlayStation 4,
Play Station VR, PlayStation Plus, PlayStation Now, and PlayStation studios.

Each of these SBUs operates independently and contributes to the overall success of Sony
Corporation.

5) Justification of the opted SBU’s

Sony's decision to have separate strategic business units (SBUs) for mobile, music, pictures,
and Playstation can be justified on several grounds:

Focus: Each SBU can focus on its core competencies and develop products and services
tailored to the specific needs and preferences of its target customers. For example, the mobile
SBU can concentrate on creating high-quality smartphones and related accessories, while the
music SBU can focus on producing and distributing music content and developing music-
related services.

Accountability: Having separate SBUs can improve accountability, as each unit is responsible
for its own performance andprofitability. This can help identify areas of strength and
weakness and allow for adjustments to be made quickly.

Flexibility: Separate SBUs can respond to changes in the market more quickly and
efficiently, as decision-making processes are streamlined, and resources can be allocated
more effectively. This can help Sony stay ahead of its competitors in terms of innovation and
customer satisfaction.

Resource Allocation: By having separate SBUs, Sony can allocate resources more efficiently
and effectively. Each SBU can prioritize its own initiatives and investments without worrying
about competing with other divisions for resources.

Branding: Each SBU can build its own brand identity, which can help strengthen the overall
Sony brand. For example, thePlaystation brand has its own loyal customer base and strong
brand identity, which can help enhance Sony's overall brand reputation.

Overall, the decision to have separate SBUs for mobile, music, pictures, and Playstation can
help Sony optimize its resources, respond to market changes, and enhance its brand
reputation, while improving focus and accountability for each business unit.

6)Table of products according to the BCG matrix

The BCG matrix, also known as the Boston Consulting Group matrix, is a tool used to
analyze a company's portfolio of products based on their market share and growth rate. The
matrix categorizes products into four quadrants: stars, question marks, cash cows, and dogs.

Here's a table of Sony's products categorized according to the BCG matrix:

Product BCG Matrix Category

Sony Music Question Mark

Sony Mobile Dog

Sony Pictures Cash Cow

PlayStation Star

It's important to note that the categorization of a product into a specific quadrant can change
over time as market conditions and product performance change.

7) Strategy for each SBU falling in any quadrant of the BCG.

1. Sony Mobile: Sony Mobile falling into the dog quadrant of the BCG matrix suggests that
it has a low market share in a low-growth market. This situation presents a challenge for the
company, as it indicates that its mobile division is not generating significant profits and may
require a considerable investment of resources to turn the situation around. To address this
issue, Sony Mobile can consider the following strategies:

Market development: Sony Mobile can explore new markets to increase its customer base.
This could include expanding its reach to emerging markets, where mobile adoption is still
growing, or partnering with other companies to bundle its mobile products with other
offerings, such as telecommunications services.

Product innovation: Sony Mobile can invest in research and development to create new
products that address the changing needs of its customers. This could include developing new
features, improving product design, or introducing new form factors that differentiate its
products from competitors.

Cost cutting: Sony Mobile can explore ways to reduce costs and increase efficiency to
improve its profitability. This could include streamlining operations, reducing product lines,
or outsourcing non-core functions.

Strategic partnerships: Sony Mobile can collaborate with other companies to leverage their
expertise and resources to improve its product offerings and distribution channels. This could
include partnerships with telecommunications providers, app developers, or content
providers.

Exit the market: If Sony Mobile determines that the mobile market is not viable for the
company in the long run, it may choose to exit the market altogether. This could involve
selling its mobile division to another company or winding down its operations.

2. Sony Music: As Sony Music is falling in the question mark quadrant of the BCG matrix, it
means that the company's market share is relatively low in a high-growth market. In this
scenario, the company needs to adopt a suitable strategy to either increase its market share or
exit the market. Here are some possible strategies that Sony Music could consider:

Market Penetration: Sony Music could focus on increasing its market share in the existing
market by investing in marketing and advertising, improving its distribution channels, and
introducing new products or services. The company could also consider reducing its prices to
attract more customers and gain a larger market share.

Market Development: Sony Music could explore new markets and customer segments for its
existing products or services. This strategy involves identifying new geographic areas,
demographics, or psychographics to target and tailoring its offerings to meet their needs.

Product Development: Sony Music could invest in research and development to create new
products or services that are aligned with current market trends and customer preferences. By
developing new and innovative products, Sony Music could attract new customers and
increase its market share.

Diversification: Sony Music could explore new markets or industries outside of its core
business to spread its risk and gain new revenue streams. This strategy could involve
expanding into related industries such as music streaming, concert promotions, or
merchandise sales.

3. Sony Pictures: As Sony Pictures is falling in the Cash Cow quadrant of the BCG matrix,
it means that the company's market share is relatively high in a low-growth market. In this
scenario, the company needs to adopt a suitable strategy to either increase its growth rate.

Maintain market share: In the Cash Cow quadrant, the company's product or service has a
high market share but low growth potential. Therefore, the primary strategy should be to
maintain the existing market share by continuing to serve the needs of the customers.

Reduce costs: Since the product or service is not growing rapidly, the company should focus
on reducing costs to increase profitability. The company can achieve this by optimizing its
operations, streamlining processes, and reducing wastage.

Expand the product line: The company can also explore expanding its product line to cater to
a wider range of customers. This strategy will help to increase revenue and maintain the
company's position in the market.

Explore new markets: While the product or service may not be growing rapidly in its current
market, there may be opportunities in other markets. The company should explore new
markets and assess their potential for growth.

Invest in research and development: Although the product or service may be mature, there
may be opportunities to improve it or introduce new features. The company should invest in
research and development to stay ahead of the competition and meet the evolving needs of its
customers.

4. Sony PlayStations: If Sony PlayStation is falling into the star quadrant, it means that it has
a high market share in a rapidly growing market. Here are some strategies that Sony
PlayStation can consider to maintain its position and grow its market share:

Innovation: To stay ahead of the competition, Sony PlayStation can continue to innovate and
introduce new features and technologies. For example, they can invest in virtual reality or
improve the gaming experience by incorporating new technologies like haptic feedback.

Marketing: As the market grows, it becomes important to differentiate Sony PlayStation from
its competitors. Sony can invest in marketing campaigns that highlight the unique features
and benefits of their product, such as exclusive games and services.

Partnership: Sony PlayStation can form strategic partnerships with game developers,
influencers, and other brands to expand its reach and appeal to new audiences. They can
collaborate with popular game developers to release exclusive games on the PlayStation
platform or partner with influencers to promote their products.

Expansion: If the market is growing rapidly, Sony PlayStation can consider expanding its
product offerings to other regions or countries. They can also explore new markets, such as
mobile gaming or cloud gaming, to diversify their revenue streams.
Continuous Improvement: To maintain their position as a star product, Sony PlayStation
should focus on continuous improvement. They can gather feedback from customers and
make changes to their product to meet evolving customer needs and preferences.