Pest Anlysis of Sony

2 February 2017

Pest analysis is another marketing tool. Pest analysis examines the changes in the marketplace caused by political, economic, social and technological factors. Political factors changes involve one party to another who are in control. For example rises in private healthcare and privatisations, which is under the conservative government. Economic factors changes include changes such as a recession creating activity at the lower ends of the product price ranges.

Also for instance the rate of interest rates rising depressing businesses, causing redundancies and lower spending levels Social factors changes include changing lifestyles and attitudes. The increase in women leaving work. , Also leading to the need for-time saving produces for home Technological factors involves changes as the public see it, this creates opportunities for the new products and product improvements and marketing techniques such as the Internet, e-commerce. Political factors within Sony

Pest Anlysis of Sony Essay Example

Political factors can have a direct impact on the way Sony operates. Decisions made by government affect every day businesses and can come in the form of policy or legislation. The political factors have a huge influence upon the regulation of businesses. Political factors effecting Sony can include the government laws such as the introduction to the minimum wage affects the employees of Sony as the hourly rate increases each year, every time the minimum wage increase Sony will have to pay taxes. This means less profit for Sony, unless they increase prices of items.

Introduction on euro makes trading easier, the exchange may drop in the UK, making Sony easier to expand. The policy Protectionism puts barriers on imports into a country to protect domestic producers which can affect the imports of Sony product in a positive light. Economic factors within Sony The economic factors effecting Sony can include the fall of Interest rates are low. Interests each year has decreased drastically overall from 1998 6. 25% to 2001 of 4%, leaving the average rate of 5. 4%. When Sony has to pay interest on loans, the fall in interest rates reduces interest costs for in Sony.

Alternatively a rise in interest rates will increase interest costs for the business. On the contrary High interest rates can make the pound an attractive currency for foreign investors, who can invest in the pound and raise its value relative to other currencies. When the pound has a high value relative to other currencies it is difficult to export from the UK, as UK exports are overpriced internationally, but it is cheap to import goods into the UK. Meaning it is a good time for Sony to expand the business further.

Analysed from statistics unemployment rates have decreased each year from 1998 to 2002. From the rates in 1998 it can be identified judging from the average rate it has decreased by 1. 1%. The fall in unemployment rates may cause Sony some problems in the process of recruiting new employees in to the business. Exchange rate each year has decreased despite in the final year 2001 and 2002 the exchange has increased by 0. 6% summing the average to 1. 5. Inflation rates over the period of 2000 to 2003 have decreased each year.

Exchange rate each year has decreased despite in the final year 2001 and 2002 the exchange has increased by 0. 6% summing the average to 1. 5. Inflation rates over the period of 2000 to 2003 have decreased each year. Social factors Social factors include the demographic and cultural aspects of the external environment. The social and cultural influences of Sony vary from country to country. These factors affect Sony customers needs and size of potential markets. Social factors include health consciousness of customers, customers health rates my be decreasing meaning les customers within Sony.

The population of growth can affect Sony as the most increasing ages begin from 50+. The older population may not be interested in the latest Sony products include more features despite the greater income they may receive. The older population tend to be interested in the simplicity of products. The varied countries such as third world countries. For example some Asian and African countries may not be able to afford to buy Sony products, which sell quite expensive products, instead these consumers will alternatively buy a cheaper brand.

If consumers of Sony work fall hours at there place of work, consumers leisure time will be limited meaning less view of the Television and entertainment products which Sony specialise in. Changes in home life have a major influence on attitudes and expectations. Telephone and catalogue sales are increasingly popular. Technological factors of Sony The technological factors include Mechanisation and automation, Processes, Invention and innovation and Internet. Within the UK there may be a shortage of IT worker which can causes a hinder to Sony, within the IT department, shortage of IT worker can cause inconsistency when a computer breaks.

Mechanisation and automation- The production, storage and marketing of Sony products can be affected by the increased use of new technology such as televisions now being attached to DVD’s and VCR’S, downloading, buying illegal products. Processes – the need to cut costs, speed up production and compete effectively is a huge driver with Sony. Invention and innovation – The need to create new technology and new productions within Sony can be a major drive for the research and development department within the company.

A business such as Sony who have achieved a breakthrough which is patented is a major sustainable competitive advantage over other competitors. For example Sony are spending millions on updating, adding new features onto products regularly. Internet – the use of the Internet for business-to-business transactions, such as relations with the suppliers and supply chain management of Sony is the most important technological change currently affecting Sony. The way in which Sony respond to developments such as creating new products can determine their competitive future.

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