The following case analysis describes and analyzes Sony's strategies used in launching the PlayStation - a gaming console that became one of the most popular gaming systems in the game industry. Sony's PlayStation story started with Nintendo Co. that wanted to incorporate CD-ROM (Sony's technology) into their gaming system. Sony agreed to create the PlayStation, a system that would allow playing games from a CD-ROM drive. However, the two companies couldn't agree with the conditions and the deal was cancelled. In 1993, Sony Computer Entertainment, a division of Sony was created, following the break-up of a joint development team formed by Sony and Nintendo Co. Sony decided to develop its own standalone video game system. Sony's PlayStation, a novice to the gaming industry outstripped two established big names - Nintendo and Sega.
Step 2: Analysis of the External Environment
This section looks at the Sony's external environment through the components of remote environment.
English: PSX video game console. Français : Photo...
English: A North American Sony PSP-1000 handheld v...
English: A Sony PlayStation (SCPH-5001), shown wit...The external environment analysis if followed by the assessment of forces shaping the gaming industry using the Porter's industry model.
Analysis of the Remote Environment
The remote environment analysis describes opportunities and threats that originate beyond Sony's operating position but influence Company's strategic decision making. It is also important to remember that the case analysis describes factors as of the date of the case (1998).
Economic Factor
North American and European economic boom, sharp growth of the market and bright outlook for the future are causing consumers to spend and invest more into new technologies. Also, markets favour and focus on the companies that are developing and selling new technologies. The economy growth has contributed to consumers' higher disposable income and increased spending power which translates as an opportunity for Sony.
Demographic and Social Factor
Threat: In the Sony's major target markets, the population is...
International management
This project requires that you draft reports for three different scenarios. Each scenario will require additional information than that provided in your text. Using both your cybrary and the internet draft reports for each of the following:
SCENARIO ONE: You and your manager are flying to Hong Kong to complete the negotiations for a contract to buy 50,000 pieces of men's trousers from a garment company there for distribution through your retail stores in the United States. Your manager has asked you to prepare a two-page memorandum outlining the various clauses that should be included in the final contract. She would like to have it in time for tomorrow's meeting with the executives of the garment company.
SCENARIO TWO: Your firm is negotiating a licensing agreement with a Chilean firm that will include sharing your patented information and technology with the Chileans. You have been asked by your superior to research and prepare a report on patent protection laws in Chile and the extent to which the laws are enforced. Prepare a three-page memo that includes the requested information and list of the sources of the information.
SCENARIO THREE: Renault, a French automobile company, acquired a 38 percent stake in Nissan, a loss-making Japanese car manufacturer. Prepare a two page report discussing how Renault may exercise effective control holding only a minority ownership in Nissan.
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