Thursday, September 24, 2015

Strategic Planning for Competitive Advantage

PlayStation 4

According to the article "PlayStation helps Sony to big profits, but mobile's struggling" by Steve Dent;"Sony is actually doing all right despite a lot of turmoil, and it's got the PlayStation 4 to thank. This quarter,the company moved 3 million PS4s, bringing total sales of the console to 25.3 million units. Peripheral and software shipments also went up, boosting gaming revenue by 12.1 percent over last year. Despite lower PS3 sales, the division still hit 288.6 billion yen ($2.3 billion) and made around $160 million. Sony recently said that the PS4 is outselling the Xbox One in most of Europe by nearly double, and has outsold its rival considerably overall. It originally expected to sell 16 million PS4's in 2015, but has now bumped that forecast to 16.5 million." This makes PlayStation 4 a star in Sony Corporation because of it's fast growing, and its so popular it is one of their market leaders.  


Mobile Phone

Unfortunately, Sony's Mobile division continues to be a black hole sucking profits. Sales dropped 16.3 percent over last year, though Sony claims that was partly due to "a strategic decision not to pursue scale in order to improve profitability." In other words, Sony's trying to focus on profitable high-end smartphones like the Xperia Z3+, but so far the plan isn't exactly working. Another division not doing well is Sony Pictures, which dropped 11.9 percent thanks to lower licensing revenues. Which shows that this mobile device is a a dog to the company because it is a business unit that has a low growth potential and small market share.

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