Certain international stocks are highly prized by individual investors, because of their popularity and their technological aspect which guarantees positive price developments and therefore attractive profits. Among these highly sought after stock market titles, those of Sony Corporation represent a judicious choice. Here is some information on Sony's stock price and analysis.
General presentation of the Sony company:
Sony Corporation is a multinational company established in Japan and headquartered in Tokyo. Its securities are listed on the NYSE and SNE markets.
The activity of the company Sony focuses on technology with multiple sectors such as electronics, IT, audio-visual, video games, telephony or music. Among the various business sectors concerned, the main one remains electronics, however, since Sony accounts for almost 14% of the market share.
This international entity includes around a hundred different companies, including its French entity Sony France SA. In total, it expands its activity in more than 183 countries
Know the competition of the Sony share :
Carrying out multiple activities in various sectors, the Sony group faces competition from many specialized and non-specialist companies. To better analyze the course of its action and its development possibilities, it is therefore necessary to take into account the results of these competing companies. Here are the main competitors of Sony by industry.
- Semiconductors: Sony's main competitors are Intel, Samsung and TSMC.
- Video games: Its most dangerous competitors are Tencent, Microsoft and Activision Blizzard.
- LCD screens: its main competitors are Samsung and LG.
- Mobile telephony: In the mobile telephony field, Sony's competitors are Apple, Nokia and Samsung.
The strategic alliances set up by the Sony group:
During the last decades, the Sony group has strategically created associations with certain competing or complementary companies in order to maintain its place among the market leaders.
- Samsung: In 2004, it thus established a partnership with Samsung for the joint production of LCD panel in Korea. This joint venture will be called S-LCD.
- Toshiba: In 2011, the group also partnered with the companies Itachi, Toshiba and INCJ for the pooling of LCD panel production resources.
- Google: Previously, Sony had also set up a partnership with Google in order to install the Android application on the various mobile phones produced by the group and its subsidiary Sony-Ericsson. Ericsson finally bought out Sony's stake in the joint venture in 2011, ending their partnership.
Introduction and stock quote of the Sony share:
To understand the evolution of Sony stock prices, it is essential to know the most significant moments in the history of this company. Here are the key dates to remember:
- It is in 2004 that the activity of the company Sony knew its first great successes on the international level with a turnover of 69 billion euros.
- In 2008, it records records with a profit of 2.4 billion euros thanks to the launch of the Playstation.
- 2012 was a year of losses for Sony.
- In 2013, profits returned with in particular the launch of the Playstation 4.
Benefits and drawbacks of Sony shares as a stock market asset:
First of all, Sony's brand identity is of course one of its main strengths. Indeed, this corporate brand is old enough to have taken root in the minds of generations of customers. Although the brand has recently experienced a decline in overall popularity, it remains one of the best known in this industry. Of course, this popularity ensures Sony an interesting and almost guaranteed success when its new products are released. Of course, this also allows it to benefit from a strong ability to penetrate certain markets or to set up interesting partnerships.
Another advantage of this company also concerns the projected growth in the consumer electronics market. Indeed, for a few years, this sector of activity knows a very interesting growth which allows Sony to sell more products. But that's not all. Indeed, analysts specializing in this market are also planning to continue this growth for the months and years to come. However, Sony is particularly well placed to take advantage of this increase in needs and demand. Indeed, being one of the largest companies in the world in this sector of consumer electronics, Sony could offer even more products that meet the needs of the market and therefore generate significant profits. This group also has sufficient production and innovation capacity to respond effectively to the increase in this demand. It should also be noted that the group recently completely revised its organization and hired experienced collaborators, particularly in the digital field, who can optimize the overall potential of the company and growth forecasts.
Finally, the last advantage of the Sony group concerns its strong ability to position itself in emerging markets. Indeed, the company is particularly well established in China and India as regards the Asian market but also in Brazil and Russia which are two other booming markets at present. All of these regions represent no less than 40% of the world's population, a very large customer and prospect base. In India, Sony is already enjoying great success thanks to its past investments in the cinema and music sector. Today, the group's objective is to double its revenues from these emerging markets.
The disadvantages and weak points of Sony shares as a stock market asset:
First, investors in the stock market are disappointed by the recent results of this company, whose revenues have been declining for several years now. This concerns more particularly certain specific divisions of this group such as the electronics, games, images and financial services sector. The current crisis mainly affects the market in the United States and Japan with sharply declining revenues. The buying strategies on this stock thus tend to fall for fear that the situation will continue.
Another negative point for this company with an international focus concerns the lack of proximity to the production units in the marketing areas. Indeed, more than 60% of the annual production is still made in Japan and must then be exported to other countries. This of course poses a problem with regard to transport costs which reduce the margins and do not make it possible to implement a reduction in selling prices in a highly competitive sector.
This brings us of course to the last fault of this company which concerns precisely the very important competition of this sector of activity. Indeed, the electronics sector, which has experienced very strong growth in recent years is attracting more and more large companies. Also, Sony must be more and more competitive and innovative in order to face competing offers and maintain its positioning.