Good Essays
Sony’s a corporation that has been around for decades, it’s a brand name that everyone is familiar with. Even though they are a multibillion dollar corporation they are not immune to the effects of external environments. They are based out of Japan but make all their profits from mostly the United States, so our economy would affect them in a huge way if it is not doing well at all. Last year the economy grew about 3.2 percent in the fourth quarter, this was much higher than the previous year’s growth rate. So naturally this is a good sign not just for Sony but for every other business out there. A stronger economy will lead to more sales and higher profits. Currently analysts believe that we may have a 4 percent growth rate in 2014 (The Associated Press). If this is the case we can expect better fiscal reports from Sony this year than 2013, sure the company is always losing money due to its failing cell phone department. Consumers account for 70 percent of our economy and if they have more buying power it will mean good news for the shareholders. The unemployment rate has also dropped to 6.7 percent, this is a major figure because it clearly shows how many people are not having money to spend, especially when a company like Sony relies on selling expensive TV’s and home entertainment devices. As the economy is slowly getting better so is our technology. Technology is what keeps business afloat for Sony, without trying to make any advances they will go out of business rather quickly. Last year Sony launched the PlayStation 4, it was known as the biggest Console launches of all time selling over 1 million units in 24 hours (Clemmer). Currently they are sitting at about 4.2 million sold. They have made a device that is not only mor... ... middle of paper ... ...y as a business has to stay ahead of the competition and that’s why it’s important to patent their ideas. A lot of companies are in patent wards because they fear the competition is profiting off their innovations. Sony is currently ahead of the competition with their new Xperia phone; it is waterproof and looks amazing (Hoyle). It won a lot of awards during CES. Currently they are the only ones with it and no competition in that area. They have to sell their products to the world, and have to be on their toes when it’s the global environment. Their sales can be impacted based on laws of other countries, or natural disasters. After the Tsunami in Japan Sony lost $270 million in damages this gave them problems in meeting demand in other countries for its products (Saporito). Something on the other side of the world caused a shortage of their cameras and PlayStations.
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