Sony's International Expansion

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Let's take a closer look. I also included an highly informative excerpt for part 2. It is an excellent resource of the planned future initiatives proposed by Sony that you can use for part 2, which expands on this response.

RESPONSE:

1. Which of the two types of international strategy does Sony seem to follow?

There are two types of International Strategy including:

A. Multi-domestic Strategy

- Product customized for each market
- Decentralized control - local decision making
- Effective when large differences exist between countries
- Advantages: product differentiation, local responsiveness, minimized political risk, minimized exchange rate risk (http://www.quickmba.com/strategy/global/)

B. Global Strategy

- Product is the same in all countries.
- Centralized control - little decision-making authority on the local level
- Effective when differences between countries are small
- Advantages: cost, coordinated activities, faster product development (http://www.quickmba.com/strategy/global/)

Sony pursued a global strategy which involved the following:

- Competing everywhere
- Appreciating that success demands a presence in almost every part of the world in order to compete effectively
- Making the product the same for each market
- Centralised control
- Taking advantage of customer needs and wants across international borders
- Locating their value adding activities where they can achieve the greatest competitive advantage
- Integrating and co-ordinating activities across borders
- A global strategy is effective when differences between countries are small and competition is global. It has advantages in terms of: Economies of scale, Lower cost, Co-ordination of activities, and Faster product development. (http://www.quickmba.com/strategy/global/)

2. Based on the strategies that this company employs within the organization, will the company be successful in its international ventures?

Sony will be successful in its international ventures. However it recognizes it needs to consider expanding its global strategy (see the excerpt below for specific goals and strategies it plans for the future growth and success in tis international ventures).

b. What changes would you recommend the organization make to help it be more successful in international markets?

In particular, it is recommended that Sony needs to:

- Strengthen core businesses,
- Enhance network initiatives and
- Leverage international growth opportunities to build for the future and drive further growth and profits. ...