PEST Analysis
(Refer to Tables in appendix1)

1. Political/legal
The Governments hold the power to change any policies and regulations which may affect Sony at the time. They affect Sony Corporation. It is attributed mainly to their new business and tariff international policies. European Governments have changed policies by imposing trade barriers which hinder Sony from accessing easily the European market. As a result, adequate priority should be attached totem, which would enable Sony to weather major global changes.(T)
2. EconomicCurrently the state of world economy is not in a good position. The economic growth has shrunk which means that the growth of the economy is negative. Economically, due to this many changes can occur such as the interest and exchanges rates. The exchange rate of Yen has dropped which adversely affected the revenue. Since Sony is an international company the exchange rates can be different to whichever country they trade with. If the exchange rates in different countries have changed, Sony would need to work out what prices are their products being sold at and whether it would be worth it. Rising taxes in Japan, which stem from inflation, have, led to an increase in the price of the products and hence the exports have become expensive.(T) 3. SocialSony has competitors which have impact on it like Microsoft and Apple.
Sony must ensure that they stay ahead of technology. They must be able to create revolutionary equipment for people because that’s what their company would rely on to stay alive.(T)
People have trends which Sony must learn so that they may create products which can relate towards them. For example, many young adults tend to listen to music; therefore Sony would create products which may allow people to listen to music anywhere at any time. People will have different tastes of style, trends, activities etc. Sony must