Strategic Management Practice Assignment Example | Topics and Well Written Essays - 4750 words

Strategic Management Practice - Assignment ExampleIn the division 2012, Sony report to its shareholders that the company experienced a substantial loss of over 67 billion Yen (Sony 2012). The year prior, in 2011, Sony had achieved another staggering loss of nearly 200 billion Yen which is a point of intersection of an softness to achieve revenue growth in a very saturated global war-ridden market with such companies as Samsung, Sharp, Sanyo and many other electronics producers. Sony, no longer sustaining a market speckle as pioneering and innovative company, faces substantial strategical problems in achieving growth and capturing the interests of very diverse global demographics to acquire Sony consumer electronics over that of competing product offerings.This report analyses the current competitive position of Sony Corporation, focusing on the specific strategic issues facing the firm, the goals the organisation should be constructing based on analysed market conditions, reco mmends strategic direction for the firm, and describes a surgery management system that should be viable for developing the recommended strategy.To address the firms main issues, there are several poses that can assist in conducting a thorough analysis of Sony. The company, due to its inability to innovate revolutionary products and competitive presence worldwide in the consumer electronics industry, has been unable to achieve competitive advantage. Barney (1991) provides the VRIO model, a strategy analysis that explores four dimensions of firm activity, these being rarity, value, inimitability and internal firm organisation.Value in this model is the extent to which a company has the capability of exploiting opportunities and to insulate itself from various competitive threats (Barney and Hesterly 2006). Value is measured on whether a firms total capital expenditures or labour investments are less pricey than the