PESTEL analysis is to address the main factors influencing on operations of the company. However, due to the fact that Sony is a multinational corporation, therefore, this assignment will comprise merely key factors that are affecting Sony’s strategy. Majority of this analysis is stemmed from Sony Annual report 2008 [available on the website www.sony.net).
* Political
- Tariff reduction in EU countries since this organisation has been expanding with new members. This policy will affect directly on import – export procedure of Sony. Subsequently, price will be a subject to be modified due to this policy.
- As emerging markets are becoming more and more important to Sony’s production and manufacture, unfavourable political factor including unexpected legal or regulatory changes such as foreign exchange, import and export controls and nationalisation of assets. The risks are expected to grow and could have impact on financial condition and operating results (Sony annual report, 2008).
To illustrate, the Pictures segment is dependent upon high specialized union members thus, a strike by one or more of these unions could delay or halt production activities.
- Sony is subject to environmental and occupational health and safety regulations that can increase the costs of operation or limits its activities.
* Economic
- In general, Sony’s products are fairly expensive therefore; people in developing countries with minimum wage are not affordable to purchase these products. Despite the fact that Sony’s productions are costly but durables, its competitors such as Samsung or Hitachi can produce the similar products with competitive prices. As a consequence, ...