Sony Mobile Communications Inc is the multinational company operating in telecommunication sector. The company was founded in 2001 as the joint venture. This joint venture was between Ericsson and Sony, and the company was headquartered in Japan. The company was previously incorporated as the “Sony Ericsson Mobile Communications”. This was headquartered in London till the time share of Ericsson acquired by Sony in 2012 (My new desk, 2020).
Ansoff Matrix is a planning marketing tool used by the companies for the growth strategies. The matrix helps the organizations to identify the growth opportunities to increase the revenue and market share. The matrix suggests the growth strategies in the combination of products and markets of the company. This matrix is one of the mostly used marketing model. Here is the detailed Ansoff matrix analysis of Sony Ericsson, which is now Sony telecommunications.
Market Penetration
The first quadrant of the Ansoff matrix suggests the market penetration strategy. This strategy suggests the companies increase the sales of the existing products in the existing markets. The company can increase the market share through this strategy. Companies can adopt different ways for this, they can decrease the prices for attracting more consumers. The companies can increase the distribution and promotion efforts. The competitors can also acquire the rivals in the marketplace. Telecommunication Company like Sony Ericsson or Sony Mobile cater to the existing market and also employ the market penetration strategy through introductory prices. It increases the distribution and promotion effort. Sony BRAVIA LCD Tv became the product which sales was increased in the existing market. They adopt the promotion strategy of purchasing BRAVIA TV and get the play station 3 free (Wadi, 2016).
Product Development
In the product development strategy, companies usually opt for launching or introducing new product for the existing market. This typically involves the expansion of product portfolio of the company. It is necessary for the companies to invest more in R&D for finding the suitable product for the consumers. This strategy is employed by the companies who have strong market share and provide innovative product to the consumers. Sony Ericsson was the joint venture and invested much in the R&D and successfully introduced many new products in the industry. Sony launched Sony VAIO in India in 2000. This was the new product of IT peripherals after the four years of new business. The company here targeted its existing Indian market. Furthermore, Sony increased its advertising to make sure customers got to know about the new product (UK essay, 2018).
Market Development
The market development is the strategy suggested by Ansoff matrix, where companies enter in the new market with the existing products. Here companies plan for market expansion. This can be done though geographic segmentation or demographic segmentation. The companies identify the target customers in the new markets. This strategy is more successful when the firms own technology can leverage in new markets. The customers are more interested in new markets in companies’ products or their disposable income is high. Sony introduced Play station 4 for the new markets, mainly targeting adults. Moreover, Sony also introduced new Xperia phones for the new markets who prefer the best camera in mobile (Wadi, 2016).
Diversification
Diversification is the strategy suggested by Ansoff matrix to the companies who are willing to take risk. This strategy suggests the companies to introduce new products for the new markets where it never operated before. This is the riskier strategy but if it gets hit, companies can take huge advantage out from it. Sony introduced its Sony Walkman as a diversified product. It has good sales but after the innovation and ipod, its portable players share started to decrease. The diversification helps the company in mitigating the risks to more broader product range (Yu and Wang, 2017).
References
My new desk, 2020. Sony Europe. [Online], Available at: https://www.mynewsdesk.com/sony-europe/latest_news/tag/mobile, [Accessed on: 30th January, 2020].
UK Essays. 2018. Marketing plan for Sony Ericsson. [Online]. Available at: https://www.ukessays.com/essays/marketing/marketing-plan-for-sony-ericsson-marketing-essay.php?vref=1, [Accessed on: 30th January, 2020].
Wadi, J. 2016. SONY Ansoff Matrix. [Online], Available at: https://prezi.com/pcpe0_mfpze_/sony-ansoff-matrix/, [Accessed on: 30th January, 2020].
Yu, H. and Wang, J. 2017. Analysis and Suggestion on the development of Sony. [Online], Available at: file:///C:/Users/CC/Dropbox/Business%20Law/13136-22040-1-SM.pdf, [Accessed on: 30th January, 2020].