Analysis of Market Positioning of Sony Corporation in China

Analysis of Market Positioning of Sony Corporation in China

Introduction

Sony Corporation is a Japanese multinational corporation with headquarters in Japan, Kōnan Minato, Tokyo, and commonly referred to as Sony. The company is one of the largest manufacturers of consumer and specialist electronics products. Sony Corporation is a designer, manufacturer, and seller of technical, consumer, and manufacturing equipment, machinery, and devices on electronic markets all over the world. The firm distributes Sony Interactive Entertainment software and add-on content across digital networks, game and video network services, and music content, and home or mobile game consoles, packaged devices, and software (Hong, 2019). They are also a developer, producer, marketer, and distributor of recorded music; they are producing and distributing animated game applications, animation titles, and various visual and music products services (Lee, Lin, & Yu, 2019). The discussion herein underscores the financial projections of the company under various financial elements, and comprehensively makes critical assumptions behind the predictions.

This report is intended to examine the international market of Sony Corporation in China. The company has learned how to get consumers to create brand loyalty and awareness to Asia and to develop a business structure and model that gives the firm a competitive advantage. It can keep existing customers in China International marketing by the organization seeks to help and concentrate on the customer’s desires and needs, particularly in China when it comes to technology globally; thereby providing an efficient market placement and having an impact that can change the lives of people on how they communicate.

Analysis of Market Positioning of Sony Corporation in China

China is one of the international markets that Sony Corporation has been concentrating on to market its electronic merchandise and to place itself in the Asian market. According to XXX, the corporation had ventured in China with the vital purpose of growing its sales capacity, which it realized until late in 2019. Despite its success, the company still faces numerous challenges since the end of 2018. The company is facing stiff competition in China both from the local firms such as Xiaomi, Vivo, Oppo, and other foreign companies such as Microsoft, Android, Huawei, and Samsung that are entering the market to have a pie of the market share.

Sony Corporation had been getting 95% market shares in China in 2018 before the entry of the new firms (XXX). This proved the proper positioning of the products of the company. However, after that, the firm’s market share has continued to fall as its prominent brands, TV and Videos no longer controls the market sales share in China. The main reason for the fall in the sale is that new products more drive Chinese consumers and no longer interested in buying the company’s TV and Videos (of different models) because they are almost similar. Therefore, the company can reposition its brand and increase its sales and market share only if it introduces new and exciting products in the market.

XXX contends that the other best way for the company to reposition itself in China and regain its market share is to produce products that are compatible with other products. There is a unique dominance of various Chinese apps that hurt the company. This is because those apps are fully functional on other electronic products, but do not on Sony’s products. Besides, the company faces regulatory hurdles such as the brief ban in Beijing, which has contributed to the reduction of the company’s sales revenue. However, despite the fact that the company gained a good market share from its implant in China, it has lately suffered constrained smartphone supply and softness in China. As one of Sony Corporation’s biggest markets, China has been a sore spot for the company as China’s economy mounts a transition away from manufacturing to services (XXX).

Sony plans to provide an anime to China with its popular Japanese business model. Without spreading over the show to other sources such as films, promotion events, and merchandise, income is difficult to generate in the industry. Throughout Japan, products and activities related to anime produce a more significant income than the series. In fiscal 2017, the bulk of Sony’s revenues in China were made up of items such as televisions and mirrorless cameras, accounting for just fewer than 10 percent. The Chinese data provider iResearch reported that the animation market in China had exceeded 26.1 billion USD (175 billion yuan) in 2018, rising to 200 billion yuan in 2019. There are approximately 200 million animated fans in the world, including people who look only occasionally (XXX). Sony Corporation continues to apply different strategies for marketing its products in China compared to its competitors. Indeed, with so many competitors entering the market, it won’t be very easy for the company to keep the position of leader and maintain the market share. However, the company is set to turn around, mostly due to its growing influence in its software products.

The US dollar and Chinese Yuen Exchange Rates

The exchange rate is among factors affecting a business’s international trade in or with another nation and, if not checked for that reason, is always a more significant risk. As described by XXX, it is the price of the currencies of a country in comparison to the currencies of another nation. The exchange rate, therefore, comprises two elements: that of the foreign currency and that of the internal currency always quoted directly or indirectly on the exchange market. The USD-Chinese Yuen exchange rates are always stated as an indirect quote. In Chinese Yuen, the price of a USD unit is often expressed. In 2018 October 3, this was 6.64 Yuan = 1 USD.