Sony is an extremely successful multinational firm. The company was established in Tokyo in 1946 as a telecommunications and measuring equipment reseach and development firm. It adopted the Sony Corporation name in 1958 and is now located in several countries worldwide. Its focus is now on four sectors: electronics, game, entertainment and financial services. Sony is now famous for products such as the Sony Playstation and Sony brand televisions. It is a firm affiliated with high quality products.
This success however does not make Sony invulnerable to outside threats. Sony faces constant competition from other electronics based firms. An example of this is Microsoft. Sony and Microsoft are the core competitors with regards next generation gaming consoles i.e. Playstation 3 and Xbox 360. However competition can become excessive and this can become negative for both firms involved.
Sony has just been involved in a case with LG, another high quality electronics producer, in which Sony lost. This led to a ban on imports of Sony Bravia HD Televisions and Sony Playstations into Europe. Thousands of Playstation 3's were seized and impounded before they could arrive at retailers. The supply of Playstations already in Europe however was enough for the demand within the 10 day ban. Luckily for Sony, the ban was lifted and trade could continue. However the patent issue which the case is based around is still ongoing according to Stuart.
Sony faces more problems this week with the coming of an earthquake measuring 8.9 which led to a tsunami sweeping Japan. Shares in Sony have fallen by over 8% according to The Irish Times. Economic disruptance and market competition have weakened Sony during the past year but many other firms are facing the similar issues. Sony needs to focus on bringing the firm out of the recession as a strong rather than a weakening multinational. Constant negative news in the press may lead to a brand weakening which in turn will damage brand loyalty.
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