BUSINESS MODEL CANVAS OF SONY

CORPORATION

Key Partners Key Activities Value Customer Customer

Propositions Relationships Segments
Shipping Research and
companies Development Top quality brand Get through Everyone
Investors Designing The fifth-largest Direct relationship Casual Gamers
television
Distributors Production manufacturer in Quality-wise
the world
Retailers Problem Solving Co-creation
One of the most
Controlling Selling comprehensive
shareholders entertainment
Manufacturing companies in the Keep through
Affiliated world.
Companies Marketing Personal impact
The company is
Technology one of the leading Reputation
providers manufacturers of
electronics for the Trend-follower
Software and consumer and
content professional
developers markets.
Grow through
Gaming Industry Ultimate
technology and Exploration
Component innovation
Suppliers Digital Brand
To be company Awareness
that inspires and
discovers your
curiosity
Key Channels
Resources To deliver ground-
breaking new Websites
Physical excitement and
resources entertainment Regional and
Facilities, Local Branches
Computers, Ecosystem of
PlayStation devices and Retailers
consoles, contents
Televisions, Dealers
Speakers, Mp3 Virtual Reality
player, Headsets, Digital and
Video camera physical shops

Sites to download
music
Intellectual
 resources Movies and
Talent, Theatres
Technicians, Lab
programs, Television
Computer science
laboratories, Other social
Innovations, media platforms
Network

Financial
resources
125,300
employees,
Shops, Content
providers, Patent

Cost Structure Revenue Streams

Facilities Sales of products

Research and Development (R&D) Through content access charges

Licenses, Patents, Original Artwork Membership related charges

Network Infrastructure Movies and Music Business

Manufacturing Services

Key Partners

● Shipping companies which provide shipping services for Sony’s fulfillment

process to ensure timely arrival of products.
● Investors who buy stocks from SONY Corporation and become part of SONY
Corporation stockholders.
● Distributors who are authorized to make agreements with SONY Corporation to
sell their products.
● Retailers who participate in the PS5 pre-orders such as Avid Sales Corp., iTech,
Gameline, Metro Plaza, Abenson, Game One, Datablitz, and GameXtreme.
● Controlling shareholders who contribute to keeping the company running.
● Affiliated Companies of SONY Corporation that can be related to gaming,
technology, and software development.
● Technology providers who are the suppliers of the SONY Corporation in terms
of technology related.
● Software and content developers who develop SONY’s software and content.
● Gaming Industry companies or firms affiliated to the company regarding
gaming.
● Component Suppliers which are the company’s supplier of materials to their
devices and products.
Key Activities

● Research and Development - Conduct research on new ideas, new innovations

and new technologies and develop new products based on them.
● Designing - Responsible for industrial design, design of user interface and
communication design.
● Production - Produce new products in accordance with the specifications and
designs developed for research and development and design activities.
● Problem Solving - Provide customers with the highest customer services and
help them solve their problems.
● Selling - Selling and promoting SONY products to customers.
● Manufacturing - Manufacture of electronics (AV, IT & communication products,
semiconductors, video games, network services, and medical business)
● Marketing - Use the skimming price strategy for its high-priced, high-quality
products and maintain its premium prices, rather than follow the strategy of
reducing prices over time to skim consecutive market segments.

Key Resources

Physical resources

● Facilities
- Sony has a lot of facilities. It is a global brand in which it is managed by
SONY direct. Many branches are spread all over the world in places like
south Korea, China, Philippines, Japan, U.S, France, Spain and many more.
These facilities accommodate distribution of Sony products worldwide.

● Computers ( VAIO laptop)

- Computers are an essential in everyday life. This is because you can get
information in the fastest way possible. One example of their products is
VAIO laptop. Following a comprehensive analysis of factors, including the
drastic changes in the global PC industry, Sony's overall business portfolio
and strategy, the need for continued support of Sony's valued VAIO
customers, and future employment opportunities for personnel involved in the
VAIO business, the Company has determined that concentrating its mobile
product lineup on smartphones and tablets and transferring its PC business to
a new company established by JIP is the optimal solution. Sony and JIP will
now proceed with due diligence and negotiate detailed terms and conditions
of the business transfer, targeting the conclusion of a definitive agreement by
the end of March 2014. Following reevaluation of the product lineup, the new
company is expected initially to concentrate on sales of consumer and
corporate PCs in the Japanese market and seek to optimize its sales
channels and scale of operations, while evaluating possible further
geographic expansion.
● PlayStation consoles (ps5, ps4, ps4 pro)
 - Gaming consoles have been a demand to society especially at times like this.
One example of this is the ps5 which in recent news, many scalpers are
buying the ps5 making the stocks of it limited worldwide.
● Televisions
- Television is also a product Sony sells. They have many televisions that
support 4k graphics which can accommodate the modern audio visuals.
● Speakers
- Speakers are also being sold in the company as an accessory for Sony
entertainment.
● Mp3 player
- Mp3 players are still being sold to satisfy customers who are into music.
● Headsets
- They also have Bluetooth wireless headset which makes it more convenient
for customers since there are no wires that tangle.
● Video camera
- They also have video cameras that allow customers to play with their
surroundings by filming, editing videos to their satisfaction. This is useful for
people with an intent to pursue filming as a hobby or career.

Intellectual resources

● Talent
- Talent is an intellectual resource since it is the innate ability of each staff to
decide how a product must be made.
● Technicians
- Sony also hires many technicians in the store as they are knowledgeable with
the inside of the different sony devices. They are also responsible for repair,
and modification of these products.
● Lab programs
- Before a product is released, Sony has laboratories where these products are
initially tested before being marketed.
● Computer science laboratories
- Computer science laboratories allow many of these products to be created
before they are tested. These are also used to study more about the device
and its parts and functions.
● Innovations
- These are the generated ideas of Sony to create a product that suits the
demands of people. Example of this is the ps5. The ps5 has next gen console
 features in which it supports cinematic 4k pixels graphics, 60 frames per
second to allow smooth movement, and many more features that the
customer looks forward to.
● Network
- Many branches of Sony have intelligence networks, hence this is why many
branches worldwide receive information on the products. Networks are
important because they are one of the foundations that hold Sony together.
Without them, information dissemination with other corporations will be
difficult.
Financial resources

● 125,300 employees

● Shops ( datablitz, abenson, gameline, gamextreme)

- Many of these shops sell products from sony. They buy products from sony
and sell them. Abenson for example sells many televisions, speakers, and
other sony electronic devices. Datablitz is a gaming retail store that sells
playstation games and playstation consoles.
● Content providers ( artists, game studios, movie studios)
- Sony is not only limited to gaming studios, but also the cinematic universe is
used. An example of a movie that Sony used as company to film is the
Amazing Spiderman.
● Patent ( Lazada, shopee, Amazon)
- Sony also has a flagship store in e-commerce pages like Lazada, shopee and
Amazon. They sell products online. This gives the customer the convenience
of ordering from home which is crucial especially at times like this where
going out is not safe because of the pandemic

Value Propositions

● Top quality brand

● The fifth-largest television manufacturer in the world
● One of the most comprehensive entertainment companies in the world.
● The company is one of the leading manufacturers of electronics for the consumer
and professional markets.
● Ultimate technology and innovation
● To be a company that inspires and discovers your curiosity
● To deliver ground-breaking new excitement and entertainment
● Ecosystem of devices and contents
● Virtual Reality
○ Here in Sony Interactive Entertainment, the best value proposition doesn’t
necessarily equate to a lower price. For Sony, it’s all about the games.
Sony’s goal with the PS5 and its pricing is to provide the best possible in
 view of its games, the breadth of its library, the console’s feature set, and
more. Value is a combination of many things; number of games, depth of
games, breadth of games, quality of games, and price of games. During
economic struggles, gaming is one the past times and industries that
benefit the most. Despite the economic repercussions that the COVID-19
pandemic would bring, Sony is confident that the gaming industry would
pull through. Sony Corporation is engaged in the development, design,
manufacture, and sale of various kinds of electronic equipment,
instruments and devices for consumer, professional and industrial
markets, as well as game consoles and software.

Customer Relationships

 Get through

Direct relationship – They open creative environment and direct lines of

communication with society.

Quality-wise – They make products in Japan which is known for greater

production quality in terms of technology.

Co-creation – They collaborate with other firms hence; they can also attract
market from neighboring fields from companies they collaborate with.

 Keep through

Personal impact – Sony moves their customers emotionally. They create internal
effect to the customers making them stick to the brand more.

Reputation – Since this company has a huge name amongst any other
technological firms, Sony keeps their integrity and reputation clean, credible,
safe, and customer-friendly.

Trend-follower – Sony creates timely products that their market will surely love.

 Grow through

Exploration – Sony explores and innovates from time to time. They always
exceed customer’s expectations whenever they release new product and
enhance the existing ones.

Digital Brand Awareness – Sony never failed to inform their customers about
their product. Even on their advertisements, they often show the materials that
they use to finish a certain product. Sony is also transparent with the process of
their production from beginning to end.

Channels
 ● Websites - Sony has its own website which entails all the background
information of their brand, its sales, and the list of products and its price.

● Regional and Local Branches - These are their physical branches across the
country and the globe, these branches sell all their available products with its real
prices.

● Retailers - Retailers are merchandisers or who buys and sells the product with a
higher price to earn profit.

● Dealers - Dealers are the ones who sell products with a deal, it’s either
exchanging products or other services.

● Digital and physical shops - These are the shops who sell different digital
brands like Apple, Samsung and the like. These stores normally sell with a higher
price but with less profit.

● Sites to download music - Normally on other digital inclined sites, these ads
suddenly pop up for a specific time.

● Movies and Theatres - As part of advertisement, they commonly give

mainstream shows a sponsor so in return, they can be promoted.

● Television - They’re paying a specific amount to different tv networks to air their

commercials; these can normally be seen after a break of a show.

● Other social media platforms - They’re advertising their brands in collaboration

with the most known social media platform to reach their target market such as
Facebook, Twitter, Instagram, and the like.

Customer Segments

 Everyone – The target customers of Sony refers to everyone, both individual and
corporate customers.
 Casual Gamers – One of the specific target customer of Sony is the casual
gamers, both genders and there is no limitation with the age as long as it is
gamer.

Cost Structure
 ● Facilities – real property, leaseholds or other interests owned, leased or
operated by Sony
● Research and Development (R&D) – a tool that helps the business of Sony to
grow and improve; it also helps in identifying the target market and developing
products that would fit their customer needs
● Licenses, Patents, Original Artwork – the rights of Sony to own, use, or sell
their inventions and product
● Network Infrastructure – the resources of Sony that enable network or internet
connectivity, management, business operations and communication
● Manufacturing – the process of turning raw materials into finished goods
through the use of tools and machines

Revenue Streams

● Sales of products - They get revenues from their products such as the
smartphones, televisions, laptops, etc.
● Through content access charges - Some of their extra features, contents and
all other data that are included in the product have extra charges
● Membership related charges - Dues or charges collected by joining an
organization that provides services and extra benefits by SONY.
● Movies and Music Business - These are the revenues from Sony
Entertainment in which you’ll need a premium account to access all of its
features.
● Services - This includes all of the revenues from Sony Life, Sony Assurance and
Sony Bank and Sony Financial Holdings.
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