End of Module Project Free Essay Example, 1750 words

This game is so popular that it has sold 12 million copies throughout the world. Microsoft’s acquisition of Mojang, at a cost of $2.5 billion USD, is expected to provide Microsoft with billions upon billions of dollars in revenue. Sony, the producer of the Playstation console, is not effectively exploiting similar, potential acquisitions to improve its reputation in the gaming industry. Sony has long maintained a very autocratic organisational structure, founded on traditional Japanese values, where there is considerable power distance between managers and subordinates, which limits team-working and shared decision-making that is so critical for innovation production and development. This hierarchy-driven model asserts the importance of employee compliance to policy and regulations whilst also building a culture of risk avoidance. In fact, Japanese companies often demand in-depth feasibility reports be constructed before even making small-scale decisions, as part of risk mitigation focus. Macko and Tyszka (2009) iterates that the most successful firms must be willing to absorb potential risks to take advantage of opportunities when they present themselves. Sony, in order to improve its revenues and its diminishing brand reputation as an innovator, maintains an organisational goal of decentralising Sony Corporation to facilitate a culture of innovation that will imp rove the firm’s market reputation and more effectively position against Sharp, Microsoft and Sony as a market pioneer. We will write a custom essay sample on End of Module Project or any topic specifically for you Only $17.96 $11.86/pageorder now This is critical for Sony to achieve profitability after years of massive financial losses. 2. Analysis of firm strengths and weaknesses Sony does maintain several strengths that could contribute to the ability to become a market innovator and build a new reputation for pioneering products. The firm maintains a very well-recognised brand identity throughout the globe in many, many foreign and domestic markets. This gives the firm moderate brand equity and Kotler and Keller (2007) suggest that this can equate to higher revenues as compared to firms without strong brand recognition. Sony also maintains significant production capabilities that can facilitate rapid product prototyping and production. Coupled with internal staff expertise in various areas of specialised knowledge (i. e. technology, design and marketing), the firm is positioned for potential exploitation of the innovation process. The firm’s main weaknesses is the highly-autocratic management structure that is still part of the Sony Corporation business model worldwide.