The purpose of this report is to discuss one aspect of Sony
multinational company within the area of technology involving PlayStation 3. This
will have a specific reference to their International Marketing and Operations
The first part of this report will focus on marketing mix
(4ps) Sony Playstation3 and involving the SWOT analyse.
The second part will focus on critical operations function
performance objectives of PlayStation 3 where it will analyse the way how Sony
PlayStation operates internationally and also domestically.
This report will be summarise with few recommendations on
what new strategies Sony could implement in order to create or develop a new
product that will have huge positive advantages over their competitors.
of Sony PlayStation 3
Sony Headquartered is located in Minato Tokyo, in Japan. The
company is considered one of the major international company that operate in
different departments including film, music and technology. As a leading
manufacturer of electronics, Sony had the ability to implement a strategical
plan on their technology department. In order to continue and also to increase
their customer’s needs and demands, Sony had the capability to developed and
created PlayStation 3, which was introduced in United Stated on 17th
of November 2006.
The PlayStation 3 have been in the industry for 12 years and
it is nominated one of the top 3 gaming consoles beside Nintendo’s Wii and
According to Anderson, Paull, F. (1982, p.15-26) stated that
strategy marketing is a theory that conduct the procedure by which companies,
groups and individuals acquire what they necessity and want by recognising value, providing for it,
communicating it and conveying it to others. The fundamental idea of marketing
are customers’ needs, demands and standards. Therefore, Doyle (2000) identified
Marketing strategy as the management process that seeks to maximize returns to
shareholders by creating a competitive advantage in providing, communicating
and delivery values to customers thereby developing a long-term relationship
with them. The specific contribution of marketing in the organization lies in
the formulation of strategies to choose the right customer, build relationship
of trust with them and create a competitive advantage.
mix (4ps) of Sony PlayStation 3
According to McCathry. E.J (1960) stated marketing mix is
considered a marketing tool that combines a quantity of components in order to
reinforce and solidify a product’s brand and to help sell the product or
service. The numerous potential outcomes
assemble into four gatherings of factors known as “The four P’s”:
product, place, price and promotion.
A product can be characterized as anything which is fit for
fulfilling the necessities of demands of the customers. The Sony PS3 as a centre
item fulfils the specific need of giving diversion through playing an
amusement, this is the focal advantage required by the customer of the
recreations comfort. As an enlarged item and in addition giving amusement it is
additionally an exceptional item. No different organizations make the
PlayStation 3 and there is likewise a huge and changed choice of diversions
accessible to play on the comfort. Additional highlights of the PS3 likewise
incorporate the capacity to observe top notch motion pictures through the consideration
of Blue-beam programming as standard which is the most recent in DVD
innovation, incredibly sensible gaming, in reverse similarity permitting PS1
and PS2 amusements to be played on the new support and online availability;
these are the additional useful or potentially passionate esteems that consolidate
to shape the brand (McCarthy, E. J. (1960). Basic Marketing, a Managerial Approach.
IL: Richard D. Irwin).
Marking is the procedure by which organizations recognize
their item offerings from the opposition. By building up an unmistakable name,
bundling and outline a brand is made. Most brands are upheld by logos and for
the freshest expansion to the product offering Sony have made a smooth
contemporary logo obviously expressing “PS3” which is shown over the
comfort. Having a logo related with the brand guarantees acknowledgment; this
enables clients to create relationship with the brand and facilitates the
acquiring choice. By continuing with custom and name the new support the
PlayStation, Sony have instantly gotten the consideration of every one of the
individuals who have purchased/provided their past models. This is a decent
methodology to utilize as Sony are proceeding to expand on what is as of now a
solid and regarded mark thought about a pioneer in its field.
The following factors to be talked about are promotion and
place. Sony has not rolled out a considerable measure of improvements on how
they intend to advance the new PlayStation demonstrate contrasted with past
ones. It is being made accessible in each gaming and electronic store and as
with past models it is accessible to pre-arrange. Not exclusively does this
ensure the client will get a comfort upon the arrival of discharge, it
additionally benefits the organization by giving them an early sign of what
number of consoles will be required. Sony are additionally proceeding to
publicize on TV and on announcements.
One of their best advertisement could be those of the UEFA
Champions League which were extremely detectable around each stadium amid
football coordinates and would be seen by millions and unquestionably saw by
Sony’s picked target market of youthful guys. For Sony, having the benefit of
being related with the renowned UEFA brand will do ponders for the organization
and will be a noteworthy effect on the individuals who see it in the event that
they trust the organization support their most loved football group. It
additionally makes the feeling that it is just the world’s ideal and most
celebrated brands that publicize with each other.
The last factor to be talked about is price. The Sony
PlayStation 3 is exceptionally costly evaluated at around £500 pounds
(Woolworths). At some market fragments cost is a key factor in store decision.
Those stores that have more noteworthy purchasing force can bear to offer the
item for less expensive. Woolworths are putting forth a decision of free
endless supply of the PlayStation 3 in would like to pick up the dominant part
of offers. Sony has likewise chosen to discharge two forms of the item; a
fundamental and premium rendition. The exceptional variant; is normal upon
discharge, to be one hundred pounds more costly because of triple the measure
of hard drive space and the measure of innovation Sony have consolidated into
the one support.
ANALYSE OF SONY PLAYSTATION 3
The Sony company have a strong
brand name, including PlayStation.
Lack of PS3 games, particularly
hit games and delay in launch.
The opportunity that Sony have in
order to ensure that they compete against their competitors are: Blu-Ray may
become the new high-definition standard and the cheapest Blu-Ray player
HD-DVD may turn into the
new superior quality standard.
High vertical integration and the
organisation Sony is considered a highly diversified corporation
Less advancement in contrasted
with WIImote and poorer online service compared to Xbox LIVE.
Introduction of exciting games
later this year and production cost should go down via manufacturing scale-up
The Wii, with is advancement
controller might capture market away from the PS3.
Strong global market position,
with the best raw computing power provided by its Cell processor.
Product backlog and no remote
control for Blu-Ray playback.
Voice controller under
development and synergies with other
products of Sony
Microsoft is growing its
advantage in online services
High quality of Blu-Ray function
and strong multimedia support
Sony isn’t powerful at
interdivision sustenance through the company and some of Sony products scare
away average customers from being over-engineered.
Sony must urgently build a bigger
enough network to attract game publishers PS3. Additionally, mixing the
images of game console and Blu-Ray layer may confuse consumers.
The S.W.O.T analyse of the table illustrated above,
demonstrate the strategic position of Sony’s PS3 with respect to the WII and
the Xbox 360.
According to Fackler, M, (January 31, 2007) cited on Hobbled
by Disappointing sales and a loss at the Game Unit, that it is common that
during a console’s presentation stage the cost or the price is set beneath the
cost of production. This is done as an away to establish an enormous enough
installed base. For instance, a strategic price cut has been embraced by Sony
on the PS3 which has prompted a quarterly operating loss of $446 million for
its game division. Furthermore, Alpeyev, P. (2007), stated that both Sony
executives and analysts have recommend that a further price cut is possible and
Moreover, the strategic price cut is usually operative in
reinforcing request. This market trend demonstrate in an investigation of the
video game industry in the U.S. from 1994 to 2002. It appraisals and flexibility
of -1.92 for game consoles in the main year of presentation (first year).
However, a further price cut on the PS3 might be more impending than
advantageous to Sony.
Critical operations function performance objectives of PlayStation 3
It is extremely
important to perform well in an organisation and successful company like Sony
preserve their reputation largely due to their performance of their operations.
In general, every organisation including Sony want to be competent and
effective. According to Slack et al (2007) specified that the principal goal of
operations function in organisation (Sony) is along these lines to orchestrate
assets and activities in an as most effective and efficient way as possible.
Being effective is to meet the needs and demands of the customers and Sony do
this by producing goods (like PlayStation 3) and services that customers truly
desire, and being effective means creating the required goods and services to
the target customers set by the company, at as most reduced cost and effort as
possible (R. Johnston, S. Chambers, C. Harland, A. Harrison, N. Slack, 1998,
Slack et al (2007) stated that operations performance objectives are urgent
variables that are deliberately essential to Sony Company. Being deliberately
imperative implies that the performance aims must be considered as vital
objectives to be accomplished and the essential point of the operations
function is to deploy the suitable resources or assets to support the
accomplishment of those objectives. Commonly, the performance objectives are
particularly identified with fulfilling customers’ necessities. Overall, the
major performance objectives that apply to a wide range of organisation
(including Sony technology department) and are firmly identified with consumer
loyalty necessities are speed, dependability, flexibility, quality and cost
(Slack et al.,2007).
Speed implies doing things rapidly. This is when companies like Sony deliver
goods and services to their consumers as quick as possible. This includes
setting on fast decisions making and speedily moving materials and data or
information inside the operations. For instance, with regards of trade and
transport facilitation, “automated processes” can be a speed execution factor.
implies getting things done on time and as guaranteed. It is about creating
dependability. It can be accomplished through the use of reliable equipment,
effective communication, effective booking frameworks, motivated workforce, and
‘straightforwardness of outskirt procedures’ can be a case of dependability
Flexibility is tied in with having the
capacity to change the operations to satisfy new necessities. As requirements
can change after some time, organisations need to improve or develop operations
capacity to present new or adjusted product and services, and to produce a wide
range or mix of products and services. Additionally, flexibility likewise
includes volume adaptability (the capability to change volume of output or
production over time) and delivery flexibility (the capacity to alternate the
delivery time). Flexibility can be accomplished to the utilization of more adaptable
equipment, providers or suppliers with great flexibility execution, multi-talented
workforce, and so on. With regards to trade and transport facilitation ‘diverse
passage times’ can be a case of flexibility performance factor.
Quality is about doing things right. It means consistently producing
goods and services that meet expectations. The quality objective can be
achieved by the provision of error-free products or services that fulfil
customer requirements. This requires skilled workforce, adequate job
specifications, proper technologies, and effective communication. For example,
in the context of trade and transport facilitation, ‘adequate transport
infra-structure’ can be a quality performance factor.
also knew that there was much more at stake than winning the console war. The
next generation of the DVD market was at stake as well. In addition to being a
gaming console, the PS3 was a Blu-Ray disc player. Blu-Ray was a
next-generation optical disc format that held more than five times as much
information as DVDs and allowed high-definition television (HDTV) owners to watch
movies with an unprecedented level of image quality. The PS3 was, in effect,
the “Trojanhorse” for the Blu-Ray format
Cost performance is about doing things
economically. Low cost is a universally attractive aspect. Lower cost of
production or service delivery reflects to the customer in form of lower price.
Cost reduction can be achieved by developing good relationships with suppliers,
good negotiation of supplying contracts, getting the right mix of resources and
facilities as inputs, etc. In the context of trade and transport facilitation,
‘no hidden costs’ can be an example of cost performance factor.
List of goods
of Sony PlayStation 3
Goods is tangible, this means that output of the operation is
a material entity that can be store. For instance Sony PlayStation 3 have raw
materials which are Reused Resin, covered wire, paint, ink, fiberglass, copper,
copper thwart, tin-lead, nickel, gold, silicon, silver, steel, aluminum,
thermosetting plastics, sheet metal, polymethyl acrylate (glue), and
Aside from the most essential focuses depicted above, there
are different other measures that Sony can take to build the estimation of the
PS3. For instance, Sony should try to enhance PS3’s online administrations that
incorporate web based gaming, IP-HDTV, film and music download, and web based
talking. While it is impulsive for Sony to contend straight on with Microsoft
that has centre capacities in the web business, it ought to take after the move
of Microsoft. Sony ought to likewise endeavour to distinguish specialty
showcases in which it has a centre competency, for example, amusements. One
competitor is the enormous multiplayer online pretending amusements (MMORPGs).
Sony can likewise present an online pizza arrange framework
for the PS3 to serve in-your-face gamers who would prefer not to grasp their
hands off the PS3. There will be minimal impetus for Nintendo to impersonate
the training since it has altogether different client socioeconomics. Microsoft
may mirror, yet at any rate thusly, Sony will satisfy its diehard clients. Sony
ought to likewise assemble and look after web journals, discussions and fan
locales for the PS3 to help make a club culture between the bad-to-the-bone PS3
In addition to expanding values, Sony should try to lessen
the cost of generation also. The current PS3 boxes are pressed with both the
PS2 and the PS3 chipsets to offer in reverse similarity with PS2 recreations.
Supplanting the PS2 chipset by programming copying will fundamentally bring
down the cost of generation. The cost of Blu-Ray gadget will likewise drop
after some time because of assembling scale-up and changes. Examiners
additionally recommend that Sony should raise interest for its semiconductors
to recover the billions of dollars put resources into the chip production lines
and to decrease the cost of the PS3.