The SONY Corporation

Paper Summary:

The following report proposes to summarize and assess the development of the Sony family of companies with particular reference to its core competency hardware and Sony Electronics Incorporated. The works of Michael Porter will provide a theoretical framework for the discussion. During the 1990s Michael E. Porter developed a theory of company strategy and comparative advantage that was presented in "Competitive Advantage: Creating and Sustaining Superior Performance and Competitive Strategy: Techniques for Analyzing Industries and Competitors". Porter argued that a successful company had to assess its situation and its environment (a typical SWOT analysis) to identify its competitive advantage. He then insisted that a company had to choose one of only three possible strategies and vigorously pursue this 'prime directive.' Sony Electronics' performance in terms of Porter's paradigm will provide the focus of this analysis.

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