PEST Analysis for Sony Corporation POLITICAL FACTORS Political factors for Sony Corporation can be changed at any time. TheGovernment holds the power to change any policies and regulationswhich may affect Sony at the time. The credit crunch and the recession may become reduced, therefore resulting in better trades for Sony Corporation. However this also means that the same has occurred for Sony¶s competitors. This means that Sony must develop ideas on how to stay ahead of its competitors. The laws which can affect Sony Corporation would consist of new international policies.
Internationally the Government may change or increase trading restrictions which would definitely change the way Sony works, because it needs to trade. The Government also has the power to change minimum wage, tax,VAT etc. These factors must be concentrated on so that Sony is preparedfor any major global changes. Also, minimum wage would also increase because reports indicate that since 1999 it has increased from over three pounds to five. ECONOMICAL FACTORS Currently the state of our economy is not in a good position. From all thehistoric recessions, we are currently reported to be in the worst one.
Theeconomic growth has shrunk which means that the growth of theeconomy is negative. The recession and the credit crunch may bededucted over the next year. Economically, due to this many changescan occur such as the interest and exchanges rates. Due to the recession being deducted in the near future exchange rates may also decrease, however steadily. Sony must be aware of any trading restrictions theGovernment has made. Since Sony is an international company theexchange rates can be Different to whichever country they trade with.
If the exchange rates in different countries have changed, Sony would needto work out what prices are their products being sold at and whether itwould be worth it. SOCIAL FACTORS Socially, Sony Corporation would be predicted to do well. The companyhas already gained a lot of reputation because of the quality products andservices they provide. Technology has been improved by a massmajority. Sony may even have new competitors which may impact on them. Sony must ensure that they stay ahead of technology. They must be ableto create revolutionary equipment for people because that¶s what their company would rely on to stay alive.
Companies such as Microsoft and Apple would also do the same. Peoplehave trends which Sony must learn so that they may create productswhich can relate towards them. For example, many young adults tend tolisten to music; therefore Sony would create products which may allow people to listen to music anywhere at any time. People will havedifferent tastes of style, trends, activities etc. Sony must also improve their work of ideas so that they can still pleasetheir customers and that they have adapted with the ageing of the Company TECHNOLOGICAL FACTORS
Technological factors for Sony Corporation are very important to study. Sony Corporation works around the use of technology every day. Itdepends on technology so that it may provide efficient productivity of work internationally. Sony would use upgraded and new technology to increase its productivity level and to stay ahead of its competitors. Sony would needto use new technology to conduct its research and development whichwould help the business create new products using customer informationand also by conducting market research