This assessment will cover the following questions:
- Analyse the new market which develops the reach of the Sony Play Station.
- Sony Play Station is a gaming station provided by the Sony company. Implement the PESTLE analysis in the context of the organisation.
- Provide Ansoff's matrix and evaluate the position of the organisation in the market area.
Analysis of the New Market
For an organisation it is very much important to expand their business to gain profitability and sustainability in marketplace with innovation (Balmer and Burghausen, 2019). In context of Sony which is a Japanese multinational conglomerate corporation that expand in the UK market place by using their existing product that is Sony PlayStation. They have diversified business activities such as professional electronics, gaming, entertainment and financial services. They come up with the new product which is Sony play station which is the ultimate home entertainment centre whether it is gaming, HD movies, music, television and many more. So it is important for them to analyse the new market before entering into it such as trends in market, external business environment and strategies to expand in specified sphere.
Trends
- The consumer electronics market grown massively in the whole world majorly in the UK market place and it is constantly developing, as products and their features launch almost every day. Trends in context of consumers as they always buy the advance tools and technology to embrace digitalization and social media. In that regards the role of organisations is to make use of social media analytics to drive success and marketing strategies to reach at potential consumers (French and Gordon, 2019). In context of Sony that are great name in the whole world aimed to expand with Sony PlayStation in the UK marketplace so it is necessary for them to work strategically and analytically for smooth-en business operations.
- Over the last few years the consumer electronic market in the UK has evolved very rapidly with the development of smartphones including the 4G models, games consoles and tablets (Horton, 2019). In addition the new trends in respective market are wearables, fitness tracking devices and range of various TV streaming gadgets. So it is predicted that in UK in near future market will see most technological role outs such as in car computer systems, robots and drones. So it is very important for Sony to enlarge business opportunities in respective market place.
- As per the UK trade and investment reports, UK is one of the largest market in Europe as the most high end consumer electronics products producing by approximately 18000 companies. The level of competition in global market is massive so it is essential to keep oneself with the trends by considering consumers needs and wants.
- People who buying consumer electronics are majorly active on the forums, blogs and social networking sights, so it is suggestion for companies that planned to operate in respective marketplace keep up with conversation in respective areas (Kiráľová, 2019). So it is very much potential for Sony to evaluate respective trends before enlarge opportunities in the UK marketplace.
PESTEL analysis
Analysis of macro environment is very much potential for organisation to scan the components of strategic management. In context of Sony they aimed to expand in the UK marketplace by using their product Sony PlayStation so PESTEL analysis of UK are as follows:
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Political factors |
The UK government taking measures to eliminate the negative effects of deteriorating economy by including the mix of monetary and fiscal initiatives (Laczniak and Murphy, 2019). Political stability is the great strength of country, however Brexit create uncertainties and political debates in the market place so in context of Sony they can face the problem in recruiting the highly talented workforce for their organisation. But on other hand it open doors for various organisations in UK marketplace for commencing business activities. |
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Economic factors |
The UK market has strong economic position relatively to the other countries in terms of GDP, diversity and interest rates. But there are some issues also occurs in respective industry that needed to evaluate that is current inflation rate is 1.7% of September 2019 that impact on the business activities as people due to rise in prices of products not able to purchase products and services. |
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Social factors |
UK is the big consumer market according to the office for national statistics the population of UK way 66.4 million in 2018 (Consumer Electronics Market Analysis, 2020). Due to change in consumer demand and UK come under the top 10 countries perceived have the most educated population in whole world. So it is the major opportunity in front of Sony to optimise the opportunities by targeting young people in market. |
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Technological factors |
UK is one of the most technologically advance country in whole world, businesses are very gradually developing the new technologies to provide best options for consumers (Lewnes and Keller, 2019). In the last few years the consumer electronic market evolved with the advent of 4G technology, game consoles and tablets. So it is the great opportunity for the Sony to enlarge opportunities in respective marketplace by taking their Sony PlayStation. |
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Environmental factors |
UK is a strong participant in formulation of policies specifically in dealing with the environment, emission reduction and sustainable sources of energy. They forced to organisations to obey the environmental friendly practices as they worried about rising Co2. So it is potential for organisation to use eco friendly way to produce and dispose of products. |
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Legal factors |
The UK possess the great legal system that is organized, transparent and effective in terms of processes. The legislative system comply with the freedom of business by supporting investors trust and confidence level (Ravina Ripoll and et.al., 2019). They focus on the suitable HR practices such as equality act, positive working conditions and sex discrimination in order to gain desirable outcomes from companies that operating in UK market. |
So from the above analysis it has been evaluated that the market conditions of the UK marketplace is favourable for Sony. As they are new in marketplace,so it is obligatory for them to analyse the market and competitors in order to formulate strategies.
Ansoff's Grid
The Ansoff matrix is also known as the Product/ market expansion grid, is important tool used to analyse and plan the strategies for obtaining growth. Respective matrix/ grid shows the four strategies that enables to a firm to grow and evaluate risk association with each strategy.
The major four strategies of Ansoff matrix are as follows:
Market penetration:
In respective strategy of expansion the firm uses its products in existing market by aiming to enhance the market share (Sahaf, 2019). It can be executed by no. of ways by decreasing prices to attract existing or new consumer, increasing promotion and distribution efforts and by acquiring the new competitor of market.
Product development:
In respective expansion strategy the firm develop the new product to satisfy demand of existing market. To occupy respective strategy requires extensive research and development of product range. Respective strategy choose by an organisation while they possess the strong understanding of current market and can be able to provide innovative solutions to remain competitive in marketplace.
Market development:
In respective market development strategy, the firm enter into the new market by using existing products. In that regards expanding into new market mean expanding into new geographies, new consumer segment, new regions (Swanson, 2019). Respective strategy is most successful while firm owned proprietary technology that helps to leverage into new market. The another thing is consumers in new market are profitable. It can be done by using no. of ways that are catering to different customer segment, entering into new domestic market and by entering into foreign market.
Read also: Marketing Management - Tesla
Diversification:
In respective market development strategy, in which a firm enter into new market by using the new products. Although respective strategy is most riskiest as both market and product development is required. There are two kinds of diversification opted by a firm that are related diversification and unrelated diversification.
From the above discussion, it has been evaluated that choosing market development strategy plays very much important role in the organisational development and gaining sustainability in marketplace. In context of Sony which is a well known Japanese brand name in electronic market, aimed to expand in the UK marketplace by using their existing product Sony PlayStation to enlarge business opportunities in positive manner (Szablewska and Kubacki, 2019). For that they choose to conduct through research and development to analyse the macro environment, trends of UK market in consumer electronics and market development strategies in order to plan properly expansion activities. In context of Sony they by using the market development strategy in which they enter in UK marketplace place that is new market for them by using their existing product which is Sony PlayStation. Respective strategy proved beneficial for organisation as they enter into marketplace by using proprietary technology and consumers are techno oriented in UK marketplace that enhance their profitability positively. Respective strategy is most appropriate for Sony as in the whole world game changing technologies are taking place so it is important to cover the large no. of consumers. Sony is a great brand in consumer electronics so while they enter in new market by using their existing product, same helps them to gain excellent response from side of consumers. So it can be said that respective market development strategy proved very beneficial for them.
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