This document provides a business canvas model analysis of Sony Corporation. It identifies Sony's key customer segments as consumers of electronics, mobile devices, games, movies, music, financial services, and professionals. It describes Sony's value propositions as newness, performance, design, brand/status, price, and convenience. It outlines Sony's channels as awareness, evaluation, purchase, delivery, and after-sales support. The document also discusses Sony's customer relationships, revenue streams from product sales and financial services, key activities of R&D, design, production and problem solving, key resources, key partnerships, and cost structure focused on value over costs.
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INTRODUCTION
SONY CORPORATION is a Japanese multinational company headquartered in
Konan Minato, Tokyo, Japan. It was founded in May 5, 1946 by Masaru Ibuka and Akio
Morita. It is a diversified business which primarily focused on the consumer electronics,
mobile, game, movie, music, network services, financial services and professional. SONY
Corporation is the parent company of SONY Group which involved in business through its
four major segments; electronics, motion pictures, music and financial services. SONY’s
principal business operation includes SONY Electronics, SONY Mobile Communications,
SONY Pictures Entertainment, SONY Music Entertainment, SONY/ATV Music Publishing,
SONY Computer Entertainment America, SONY Network Entertainment, SONY DADC,
SONY Financial Holdings SONY Biotechnology, Micronics and SONY Cards/SONY
Rewards. In this report, I analyze the Business Model Canvas (BMC) of the SONY
Corporation.
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BUSINESS MODEL CANVAS
1.0 COSTUMER SEGMENTS
SONY Corporation is a diversified business where it serves multiple customer
segments with different needs and characterictics. The customers are segmented according to
their needs such as consumer electronics, mobile, game, movie, music, network services,
financial services and professional. Belows are the customer segmentation of SONY
Corporation:
USER/SEGMENTS FEATURES PROVIDED TO ADDRESS NEEDS
Consumer Electronics Electronic products for daily used such as televisions
and refrigerators.
Mobiles Products for communication such as smartphones and
tablets pc.
Games Multimedia games, video games such as playstations
and joystick.
Movies Camcoder, video camera, home video and home
theatre system.
Musics MP3, MP4, Walkman, home audio
Network Services SONY Entertainment Network
Financial Services SONY Financial Holdings
Professionals Products for education, corporate, event production,
broadcasting, cinematography, museums, sports
stadiums and auditorium
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2.0 VALUE PROPOSITIONS
SONY Corporation promises to deliver values with the follows characteristics to the
customer:
1. Newness
Customers will experience the newest technology by using the new released
products from SONY which introduce new innovation and ideas.
2. Performance
SONY promises to provide customers products with the greatest performance
where they became the first company to produce a water resistant smartphones
and tablet PC. They also promise their customers with a great sounds and
display for their other entertainment products.
3. Design and Customization
SONY promises the customers to provide them with modern-look and latest
designed smartphones and playstations. The smartphones always come with
colorful features where the customer can choose which colour they prefer. The
new smartphones and tablets are also introduced with a sleek and lighter
design.
Customers can also customize the storage and performance of the laptops and
smartphones according to their needs and preferences.
4. Brand/Status
SONY introduces products with their own branding and those products were
developed by their own developers before branding the products as their own.
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SONY brand has already being popular for years and are widely used by
people from all over the world. This shows that SONY is a trusted brand that
comes with great products to the customers.
5. Price
The prices are vary according to the products. SONY promises to sell its
products at a reasonable price according to the quality and performance of the
products.
6. Convenience/Usability
SONY introduces consumer electronics such as televisions, laptops,
refrigerators and computers for the purpose of giving convenience to the
customers’ daily life.
Products such as computers and laptops can be used to perform many tasks
especially to the students and employees in professional areas.
3.0 CHANNELS
SONY Corporation uses these channel phases to deliver the value propositions to its
customers:
1. Awareness
Each time SONY Corporation decided to release new products, they will held a
press conference to introduce the products to the customers. They also promotes the
new features and new designs of the products by broadasting the teasers or
advertisements on the televisions and in the cinemas. They also put advertisements of
the new products on the newspaper.
2. Evaluation
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SONY Corporation will hire some bloggers and IT website owners to give
reviews and evaluation on their products. They also publish the full information of the
products such as the performance, quality, design, prices, features and capabilities of
the products on their website and online stores so that the customers can review the
overall information about the product before deciding to buy it.
3. Purchase
SONY Corporation provides online stores which vary according to countries
for the customers to buy their products online. They also opened a hedquarter and
some SONY Center outlets in each country. Besides, they also hire some authorized
distributors to distribute and sell their products.
4. Delivery
SONY Corporation deliver its value propositions to the customers through
advertisements on the internet, radios and televisions, and also through the packaging
of the products.
5. After Sales
Each of the SONY products comes with a warranty and manuals for the
customers. If the products are broken or there is a problem with the product, the
customer can always go to the SONY Center outlets to get help with the phone.
4.0 CUSTOMER RELATIONSHIP
Each customer expects SONY to
provide enough customer service officers at
each SONY Service Center to assist them
personally. They also expect that SONY will
provide a long-term warranty for each of the
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products. They also hope that SONY can provide online customer service officers to help
them live on the chat without needing to go to the SONY Service Center to get the service.
SONY Corporation opened many outlets of SONY Service Center in each country and
hired many curtomer service officers to meet the customer’s expectation. However, they do
not provide any live online customer service officers.
5.0 REVENUE STREAMS
SONY Corporation gets revenues from various activities as follows:
Sales of the SONY products (smartphones, televisions, laptops and etc)
Financial services
Interests and dividends
Sales of securities investments
Foreign exchange
Below is the proportion of sales by business for year 2013:
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The total sales and revenues for the year 2011 to 2013 is shown in the chart below:
The sales and operating income by segment from year 2012 to 2013 is shown below:
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6.0 KEY ACTIVITIES
The key activities involved in SONY Corporation are:
Research and Development: To conduct researches on new ideas, new innovation
and new technology and develop new products based on it.
Designing: Responsible for the industrial design, User Interface design and
communication design.
Production: Produce new products according to the specifications and designs
developed in research and development and designing activities.
Problem Solving: Provide the best customer services to the customers and assist them
to solve their problems.
Selling: Sell and promotes SONY products to the customers.
7.0 KEY RESOURCES
The resources involved in SONY Corporation businesses are as follows:
Type of Resources Resources
Physical Land, buildings, machinery and equipments,
inventories
Intellectual Design, goodwill
Human Officers, board of directors, assembly line
workers, supervisors, security guards
Financial Cash, accounts receivable, stocks, income taxes
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8.0 KEY PARTNERSHIP
These are the partners involved with SONY Corporation:
Investors: Investors buy stocks from SONY Corporation and be part of the SONY
Corporation stockholders. Investors also may buy bonds from SONY Corporation.
Distributors: Authorized distributors/dealers make agreements with SONY
Corporation to sell SONY products in their business and get certain amounts of
commissions from the products sold. In this case, SONY Corporation becomes the
supplier for other IT and communication companies.
9.0 COST STRUCTURE
SONY Corporation is a value driven company where they focus more on the premium
value proposition that they can offer to the customers nevertheless of the costs involved. We
can see the proof below where the research and development costs increase as the year
increases.
The financial statements for SONY Corporation for the year ended 2013 can be seen in the
APPENDIX section.
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CONCLUSION
In conclusion, SONY Corporation is a well-established multinasional company which
focus on the consumer electronics products with its own branding. It is a diversified business
which uses multisegments of customers with different needs. As a well-known brand, SONY
promises its customer a high expectation of new products. Therefore, SONY Corporation
focus more on the premium value proposition that it can offer to the customers regardless of
the costs incurred and thus makes it as a value driven company. It is a great company which
already penetrates a worldwide business.