A product may be defined
as a service or items that are provided with the aim of satisfying customers’
needs. They may be tangible or intangible. In order to reach the destined locations,
a distribution channel is used. Products are made at different costs and disposed
at a particular price. Whenever a product is named, individuals can easily
recognize it and it therefore becomes a brand. This makes it unique from other
products available in the market. However, it should be flexible in that it
adapts easily to the incoming changes and trends in the industry.
The organization to focus on in this case is Sony. It is
comprises of diverse businesses which range from electronics such as
communication commodities, network services and video games. Moreover, it
offers financial services through insurance schemes and banking as well as
movies. It is among the most preferred entertainment companies internationally.
Their motto is a source of motivation
and it states ‘Be moved’. The company holds a record due to the reserves of
cash it holds. Its shares are of high value therefore it generates large revenue.
The product of concern here is the smartphone produced by the corporation.
Sony mobile initially began as a partnership between Sony
and Ericsson and it was therefore initially referred to as Sony Ericsson. Sony
later purchased shares from Ericsson and fully owned the entire organization.
The company has come up with a totally different design of smart phones with
unique features. The main aim was focussing more on the high end market for the
phones so that the low quality products can be reduced in the market.
There are different types of markets. A perfect competition
market has many sellers and buyers. In this kind of market, it is difficult for
anyone to alter the prices since there are many individuals involved therefore
the alternatives o be pursued are also numerous. In a monopoly system, there is
only a single producer of goods and services in demand without any substitute.
The prices are determined by the entity considering that there is no
competition. Moreover, there is an oligopoly which has many producers,
monopolistic competition market and a monopsony.
Direct competition occurs when two or more organizations
offer products and services of the same kind thus they end up competing for
potential clients in the same market. Indirect competition occurs where sellers
have different products which satisfy the same customer wants. Sony smartphones will compete in market where
direct competition is observed most likely in the Malaysian market where most
individuals secure the latest gadget to fit in a certain social class. This is
as a result of the rising demand for communication and technology in the society.
phones have made communication easier and the new smartphones are more reliable
since they are more advanced than the initial gadgets. Comparative advantage is
when a state or a particular organization produces goods or services at a lower
opportunity cost compared to the rest. This means that the State or business
entity involved can produce goods that are cheaper compared to other countries
instance, U.S companies buy the service of call centres from India since it is
cheaper than locating the call centre in different states. Therefore Indian
call centres end up being better than those from America. It occurs more in goods
since they can be exported unlike services which are intangible. However,
entertainment, call centres and banking services are now easy to export with
the new changes that have improved technology. Competitive advantage makes a
company more appealing than the competitors and lures in more clients.
company has various trade opportunities considering that Sony acquired its
shares from Ericsson, it can now perform independently and work towards innovation
so that there may smartphones may be of a higher quality and easily marketable.
Moreover, the company can make good use of the music industry and movie business
to deliver the content in demand to the clients. The PlayStation unique
features are marketable internationally to date and they should be improved on
as well as provision of a variety to choose from so that they can be