Sony Case Study - Resources, Capabilities and Core Competencies
Question 3: What do you identify as Sony’s resources, capabilities and core competencies? Does Sony have a sustainable competitive advantage?
Sony Corporation is considered one of the world’s most successful companies, operating in the “electronics, games, music, films and financial services” industry (Hanson et al, 2001). Sony is known for creating “products that stimulate the senses and refresh the spirit” (Sony, 2007). Effectively managing a combination of its resources, capabilities and core competencies, has allowed Sony to create a strong sustainable competitive advantage.
Resources
Resources refer to “factors that a company owns, controls and uses for the purpose of creating value” (Hill et al, 2007). Sony’s numerous tangible and intangible resources help to determine its distinctive competency, thus leading to maintaining a competitive advantage.
When identifying Sony’s resources, both its tangible and intangible assets are included. “Tangible resources include assets that are financial in nature, or have physical properties” (Hill et al, 2007). In 2007, Sony recorded a sales and operating cash flow of $70,303 million, an increase of 10.5 percent from 2006 (Sony United, 2007), as part of its financial resources. Land, buildings, machinery, and equipment are also part of Sony’s tangible resources, and are worth approximately $14 million (Sony United, 2007).
“Intangible resources include those non-physical assets that the company uses to produce goods or provide services, or expects to generate future productive benefits” (Hill et al, 2007). The Sony brand is considered “one of the world’s most recognisable and trusted brands” and was “ranked 21st in the Business Week/Interbrand list of the World’s 100 Most Valuable Brands with an estimated value of US$14 billion” (Singh et al, 2005). The Sony brand is associated with “superior quality, innovation and style” (Sony United, 2007), in the minds of its customers.
Also, as a result of effective
Sony Corporation is considered one of the world’s most successful companies, operating in the “electronics, games, music, films and financial services” industry (Hanson et al, 2001). Sony is known for creating “products that stimulate the senses and refresh the spirit” (Sony, 2007). Effectively managing a combination of its resources, capabilities and core competencies, has allowed Sony to create a strong sustainable competitive advantage.
Resources
Resources refer to “factors that a company owns, controls and uses for the purpose of creating value” (Hill et al, 2007). Sony’s numerous tangible and intangible resources help to determine its distinctive competency, thus leading to maintaining a competitive advantage.
When identifying Sony’s resources, both its tangible and intangible assets are included. “Tangible resources include assets that are financial in nature, or have physical properties” (Hill et al, 2007). In 2007, Sony recorded a sales and operating cash flow of $70,303 million, an increase of 10.5 percent from 2006 (Sony United, 2007), as part of its financial resources. Land, buildings, machinery, and equipment are also part of Sony’s tangible resources, and are worth approximately $14 million (Sony United, 2007).
“Intangible resources include those non-physical assets that the company uses to produce goods or provide services, or expects to generate future productive benefits” (Hill et al, 2007). The Sony brand is considered “one of the world’s most recognisable and trusted brands” and was “ranked 21st in the Business Week/Interbrand list of the World’s 100 Most Valuable Brands with an estimated value of US$14 billion” (Singh et al, 2005). The Sony brand is associated with “superior quality, innovation and style” (Sony United, 2007), in the minds of its customers.
Also, as a result of effective
References: Hanson, D, Dowling, P, Hitt, M.A, Ireland, R.D, and Hoskisson, R.E. (2001). Pacific Rim Edition Strategic Management: Competitiveness And Globalisation Hill, C, Jones, G.R, Galvin, P, Haidar, A Kandampully, J, Mok, C, Sparks, B. (2001). Service Quality Management. New York, Haworth Press Singh, K, Nitin, P, Loizos, H, Singh, A [Available online, accessed October 16, 2007] http://www.sony.net/SonyInfo/IR/financial/ar/2007/qfhh7c00000d7pmp-att/SonyAR07-E.pdf