Introduction
EPAM Systems, Inc. provides software engineering solutions and technology services worldwide. The company offers software product development services, including product research, customer experience design and prototyping, program management, component design and integration, full lifecycle software testing, product deployment and end-user customization, performance tuning, product support and maintenance, and managed services, as well as porting and cross-platform migration. It also provides custom application development services, such as business and technical requirements analysis, user experience design, solution architecture creation and validation, development, quality assurance and testing, legacy applications re-engineering/refactoring, porting, and cross-platform migration and documentation. In addition, the company offers application testing services; testing for enterprise IT, such as test management, automation, functional and non-functional testing, and defect management; and consulting services. Further, it provides enterprise application platform services comprising requirements analysis and platform selection, customization, cross-platform migration, implementation, integration, and support and maintenance. Additionally, the company offers application maintenance and support services, such as incident management, fault investigation diagnosis, work-around provision, bug fixes, release management, enhancements, and third-party maintenance; and infrastructure management services, including application, database, network, server, storage, and systems operations management, as well as incident notification and resolution. It serves independent software vendors and technology companies in banking and financial services, business information and media, and travel and hospitality industries. EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.
Vision, Mission, and Values
Since the company’s inception in 1946, Mr. Ibuka developed the basis Prospectus, a document outlining the assignment and the principles that the company should uphold and base its operations (Lesile De, 2010 p. 34). The primary section was the ‘Purpose of the Incorporation’ that was separately into the subsequent eight points:
-To develop an ideal company that emphasizes on the spirit of autonomy and open-mindedness, in which engineers with genuine inspiration can practice their technological proficiencies to the maximum level;
-To rebuild Japan and to elevate the country’s civilization through active technological and industrialized actions;
– To punctually apply extremely advanced technologies those were available in a variety of departments throughout the war to ordinary households;
– To rapidly commercialize superior technological findings in universities and research organizations that are worthy of applications in ordinary households (Lesile De, 2010 p.45)
-To bring radio communication and similar tools into the ordinary households and to endorse the employ of home electric applications;
-To dynamically take part in the rebuilding of the war-damaged communications systems by offering the required technology;
-To develop superior quality radios and to offer radio services that are suitable for the coming novel era; and
– To encourage the discipline of science among the universal community.
Sony Merchandise
Sony has a variety of products that range from electronics goods, entertainments and games. The Sony merchandise can be classified into the subsequent main classes:
| Projectors and televisions Home Audio Home video Home theatre System Digital photography |
Hand cam video camera Computer tangential moveable audio Game In-Car entertainment |
Mobile phones Storage and recording media Batteries and chargers Other accessories |
Internal Analysis
Sony has developed to be a customer-electronics corporation since 1946. At the threshold of the much expected globe of complete digital convergence, the electronics manufacturer turned communication and media massive appears to have it all for the subsequently generation internet-conscious tools Marcus & Marcel, 2010, p. 34). The company has a compelling content to support them, a vibrant culture of innovation resulting from cutting-edge survey and development as well as a world-class promoting acumen that has developed Sony to be a world megabrand. The potential core competency of the Sony Corporation is in the subsequent internal analysis:
Accounting Ratio Analysis
The company’s operating proceeds margin in the year 2002 was merely 0.018 with profits on shareholders equity providing a miserable 0.006 (Sandra, 2008 p. 28). The returns on the assets indicated a 0.002. These poor outcomes demonstrate that the corporation had not managed particular aspects of its functions well and, therefore, incapable to attain standard income. The company’s debt-to-asset ratio in the previous two years was high and increasing moderately putting the corporation at great risk in case the creditors demanded a refund.
Financial Resources
The company’s net sale of US$53 billion for the business year 2001 is a record high of all times. Nevertheless, the operating proceeds of US$1.01 billion earned in the same calendar symbolize a forty percent subtraction compared to the preceding year’s figures (Sony, 2008 p. 46). This emphasizes that Sony’s proceeds margins are seriously eroded. However, being a corporation that is gifted with a massive reserve, Sony has the essential financial capital to go on with building a broad global infrastructure that offers its conglomerate consumers with the variety that is worthy. This is almost certainly a competitive tactical lead that any novel entrants to the marketplace cannot provide.
Corporation structure
Having a continued expansion and achievement, Sony assumed a strategic business unit type of the multidivisional system to execute its related, connected diversification approach (Robert, 2009 p. 89). The corporation is widely separated into six SBUs, with each further subdivided into minor units, shared and commonly referred to as divisions. The divisions relate to each other in the nature of items or makes or both. A typical SBU headquarters practices are monetary and policy controls above its SBU (Robert, 2009 p. 67). The SBUs nature of multidivisional settings IS a suitable match to Sony’s approaches as its inherent benefits permits the company to manage diversifications many demands better. In addition Sony guarantees a suitable match between its global policies and organizational arrangement exists so that the corporation could efficiently harmonize and control its world operations.
Physical Resources
Despite an already extensive domestic and international business infrastructure, the company persists to invest greatly in infrastructure. The investment is meant to enable Sony have sufficient ability to meet the mounting requirements and demand of their consumers. By 2003, Sony owned fifty-five manufacturing plants upon shutting fifteen plants across the globe (Arnoldo, 2010 p. 78). On top of that Sony has twelve home-grown manufacturing based plants in Japan. As a result, it is deducible that the physical capital that Sony has will likely produce a value –creation competitive advantage that is the corporation’s strength.
Technological resources
Sony was the initial company in some areas such as the Walkman, Trinitron, Camcorder, the Compact Disk and many other that are still creating their markets up to date. Sony patents it is ground-breaking inventive that comprise the brand name ‘walkman’ and the videotape ‘beta film system.’ Technologically, the company is more advanced in developing customer-electronics items than its rivals in the business (Hellen, 2005 p. 78). In short, the company’s strength also concerns the ability to control on technologies well and in advance of its rivals to generate inventive and superior quality gadgets for its consumers to augment sales and proceeds.
Human capital management
Sony’s formal website emphasizes that the development and the vitality of the company’s workers drive the dynamic expansion of the business (Chang, 2011 p.90). So far, the company can offer inclusive training to its workers to enable them poses superior skills and knowledge. On top of that the corporation gives programs that are tailored to local requirements for managers and engineers. In brief, human capital arrangement, more so the capacity to inspire and enhance the productivity of the employees is the company’s strength.
Originality Resources
Originality is one of the two core pillars of the Sony business- promotion is the other pillar. The innovation pillar came into existence through the founders of the establishment who through their corresponding abilities and passionate leadership set the basis of a true culture of a novelty at Sony. The capacity to constantly invent and develop revolutionary innovations that boost sales and help widen proceeds indicates that the company possesses considerable quality modernism resources that are difficult to emulate and that are worthy (Jacky, 2008 p.98)
Risk control
The nature of risks that the company faces comprises cost risk, pure risk, and credit risk. Initially, Sony bought insurance policies to reduce or lower pure risk (Jon, 2012 p 56). Subsequently, the company employs several derivative apparatus such as foreign exchange forward agreements to hedge the possible shortcoming risk on the money flow from the regular course of an industry that results from market variation. Therefore, Sony’s holistic strategy to risk control efficiently is seen favorably by its stakeholders most of the occasions, more so the shareholders (Jim, 2012 p. 67).
EXTERNAL ANALYSIS
Political
Government strategies are a significant drive for the prowess of almost every nation on the planet. In the later area of the 1990s, there was a mounting deregulation and privatization of the customer electronics as well as technology and media plants across the globe. It was noticeable that the majority of the nations developed open trade agreements as others reduced the entry to overseas direct ventures (Chris & Stephen, 2008 p. 92). For example, Sony being a japans company had no permission to develop broadcasts in the United States because of the strategies developed by the government.
Economics
The era of globalization in the 1990s has the interconnectedness of the different markets, thus resulting in the emergence of the global manufacturing markets. Consequently, it permits a wider access to foreign merchandise for customers and corporations. In spite of the openings of the age of globalization, the entire prospect does not look promising in the closer future as it is dampened by the influence of the recession (Reinner & Joseph, 2013 p.78). This is possible to influences Sony’s sale and proceeds unconstructively.
Socio-cultural and Demographic
A research by Godman Sachs indicated that sixty percent of the Americans played film games and that sixty-one percent of those were adults (Khanh, 2009 p. 88). Similar patterns were observable in Japan and Europe. This provides a chance for all technology and media corporations to augment their incomes by providing innovative goods and packages at reasonable costs. Demographically, the planets population stood at five billion as of 2002, and it is anticipated to rise (Khanh, 2009 p. 78). This is pleasing news for the entire companies as they look forward to more venture opportunities.
Technology
Novel packages such as the internet telephony and the growing employ of telecommunications give Sony the chances to control on novel technologies and amplify sales. Additionally, e-commerce and Internet-related dealings are other areas that the company can take advantage of and augment its revenues (Khanh, 2009 p.69). Sony also requires being mindful of the truth that other electronic companies would have the ability to emulate Sony’s technology in a shorter span of time while giving more competitive costs.
Analysis of competitor forces
The threat of substitute goods: the likelihood threat of alternatives is reasonably low since there are a few substitutes from rival companies. The company has developed a good name and a strong consumer loyalty efficiently positioning the corporation’s items of alternative goods.
Bargaining authority of buyers: the authority of the purchaser is high because of approximately no switching expenses for consumers to shift from one brand to the other. The availability of Internet also permits the consumers to have all data pertaining price charges by the various corporations (Michael, 2009 p. 87). The ability to shop online also increases the bargaining authority of the consumers.
Bargaining authority of the providers: the bargaining authority of the providers is low because of the large number of providers and consumers. In addition, Sony functions in a wide global supply chain arrangement and its providers are not in concentration.
The threat of novel opponents: the threat of new competitors is low as the entry into the business requires huge capital, the economics of scale, goods separation as well as technology and novelty know-how.
Concentration of rivalry: business competition is high because of relatively intense rivalry and elevated exit expenses. The elevated intensity of competition is also immense due to the diverse and equally balanced rivalry in the marketplaces, universally short item existence cycles as well as elevated R & D (Domicity, 2009 p. 85)).
Stakeholder Organization
Through a developed set of public association protocols, Sony employs a wide set of communication dealings that are utilized to develop and maintain favorable associations with the various stakeholders. The stakeholders comprise workers, shareholders, providers, instructors, media and potential investors (Domicity, 2009 p. 89)).. Others include monetary institutions, government organizations, and executives as well as the community in general. Stakeholders who require any data about Sony have the ability to retrieve it gladly from the corporation’s website. In this manner, the company creates a podium for a mutual association with its stakeholders that includes serving the wants and the demands of the consumers. Sony satisfies it clients by providing novelty goods devoid of having to compromise reliability and quality. Such a move help the company attract new consumers increasing their sale and revenues. The company’s resounding achievement with the PlayStation also spells well of its capacity to meets the anticipations of its business associates and consumers (Michel, 2009 p. 90). Besides, the company strives to develop strong associations with the government organizations and officials as well as the community.
Competitor analysis
Sony begins facing augmented competition not only from an established set of competitors but also novel opponents as subsequent:
| BUSINESS CATEGORY Computer developers Net-work apparatus builders Software creators Media corporations Game developers Photographic-tools developers Mobile phone manufactures |
COMPANY Dell, IBM,HP, Apple, and Samsung Cisco, and 3com Microsoft and Sun Microsystems AOL-Time Warner and Vivendi Universal Nintendo Kodak and Fuji Nokia, Motorola, Samsung |
This complicated, multidimensional rivalry is a bitter truth of the globe of digital convergence, where limitations between conventional business sections have vanished with novel chances opening up. The rivalry between the corporations is likely to be extreme as most harbor impressive broadband ideas and have also ventured their prospects on them. Luckily, most of the rivals at this position do not pass the same concrete and insubstantial capital as that of Sony.
STRATEGY
If Sony will remain competitive leader in the emerging markets across the globe, then it has to come up with various potential future positioning alternatives that will enable it sell its products across the globe (Helen & Derek, 2005 p.97). The following three approaches can help Sony position itself in the emerging markets in the United Kingdom market. They comprise:
Maintaining the leader position in product innovation and quality
Sony’s strategy of actualizing what others have failed to execute has paid off in the nature of outstanding products that person’s desire. In the course of history, Sony inventiveness has grown to be part and parcel of conventional culture with the capacity to attract the imagination and improve people existence. In current times, the company goes on fueling the business growth through the sales of ground-breaking and eminence items such as the digital cameras and the VAIO notebooks. Moving ahead, Sony should go on upholding the market leader position in product innovation and quality through strong R & D, original employ of the novel technologies and greater marketing insight (Helen & Derek, 2005 p.102). This type of positioning has the great potential than the other positioning. The company’s persistence in innovation and quality will attract more customers enlarging its sales. Sony’s ability to come match the requirements of the ever evolving world will make venture immensely and successfully in the UK markets.
Invest in Broadband system
Sony is a company with convergence at its very hub. Led by an integrated industry model, the Corporation is well positioned to bring novel gains to its customers by combining hardware, software, services and content. Moving ahead, the company plans to persist to venture heavily into the broadband system so as to permit a completely new type of entertainment. The new type of entertainment includes products such as digitalized films and music as well as Internet substance and games to be available the world over. The launch of the Sonystyle.com is an example of the future that Sony is developing for the emerging markets.
Reinforcing the brand standards and promoting a world-class product
The phenomenal strength of the Sony brand international is certainly an authentication to the corporation’s reputation for developing pioneering items of outstanding quality and worth. Sony observes brand variety to link with consumers across a variety of lifestyle segments’. Moving forward, the company should further strengthen its brand name by developing exclusive products that fit the lifestyle of each and every individual in the emerging markets.
Implementation
The UK marketing team should come up with implementation policies to enable the company succeed in the UK market. One of the strategies should be the adoption of the visionary leadership in the market. Sony is a classical situation to prove the strategic significance of a visionary organizer carrying the brand to greater heights (Lesile De, 2010 p. 87). The company’s organizations team together with the CEO should be responsible to develop surroundings that nurture experimentation and innovation in the UK market.
The company together with its stakeholders should work together to maintain the devout zealous to innovation in the UK market. Sony grew to the global heights due to its ability to innovate and come up with outstanding brand names. The company should execute the same spirit in the UK market. It should work together with the stakeholders to develop and launch high-quality products in the market. Teaming with its stakeholders and associate to develop and launch quality products should be the motto of the marketing team in The UK. They should come up with implementation campaigns that create the awareness of their brand name to widen sale in the UK market.
The company should make use of its pioneer advantage in the implementation stage. The company has always emerged as the pioneer in almost every segment that it venture; thus it should pioneer the UK market with the execution of the brand name that is not in existence in any other market across the globe. The move will enable the company augment its sale and attract more consumers of its trademark products in the UK market (Lesile De, 2010 p.107). The company should come up with a joint venture with its stakeholders and associate. They should also buy existing establishments and establish new subsidiaries that will further its market.
Conclusion
In conclusion, Sony is a giant developer of electronic gadgets, and should always operate to remain the principal leader in the business. The company’s brand is renown all over the world, and almost everyone covets their products. The outstanding brand name has attracted the company many consumers and their outstanding products bringing them many investors. The company should further its innovative nature and maintain the excellent quality of its products to remain competitive in the emerging markets. Sony should work to employ the best workforce in the market and maintain its culture and code of conduct if it has to remain relevant in the ever evolving business globe. It should venture in the emerging markets with great policies that are superior to its rivals to augments its sales and revenues. Sony should operate to remain extraordinary every day.
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