PESTLE ANALYSIS OF SONY TELIVISION IN INDIA :

A PESTEL analysis is a framework or tool used by marketers to

analyse and monitor the macro-environmental (external
marketing environment) factors that have an impact on an
organisation. The result of which is used to identify threats and
weaknesses which is used in a SWOT analysis.

PESTEL stands for:

P Political
E Economic
S Social
T Technological
E Environmental
L Legal

It is very critical for one to understand the complete depth of

each of the letters of the PESTLE.

Political:

These factors determine the extent to which a government

may influence the economy or a certain industry. For example a
government may impose a new tax or duty due to which entire
revenue generating structures of organizations might change.
This can include government policy, political stability or
instability in overseas markets, foreign trade policy, tax policy,
labour law, environmental law, trade restrictions and so on.
The political environment consists of Laws, Governme
nt agencies and pressuregroups that influence or limit various
organizations and individuals in a given society. Sony before
mass producing a product for a country or a region has to take
permission from Government and other authorities.
Political factors of Sony can be changed at any time, which
could affect business of the Sony at time of change. As well as
instability in political situation of country will affect the business
In the directive of businesses, the political factors have a huge
influence. An example of political factors that affects Sony
which includes government laws is minimum wage law. This
would affect Sony as the minimum wage law keeps changing
every year. As in the same time product cost also keeps on
changing, this will make Sony facing losses.

Other things are:

Trade, return, and warranty restrictions

Employment law is crucial to maintain cost effective and
legal in a specific country.
Introduction to rupee, the exchange may drop in the UK
making Sony easier to expand.

Economic Factors:

Economic factors have a significant impact on how an

organisation does business and also how profitable they are.
Factors include economic growth, interest rates, exchange
rates, inflation, disposable income of consumers and
businesses and so on.

A company like Sony, not much effected by economically but

there are some above factors considered as economic factors

Production and distribution of a multitude of consumer

electronic products.
Interest rates play an important role in a companys
growth and price factor of the products;
The fall in unemployment rates may cause Sony some
problems in the process of recruiting new employees in
the business.
Specific regions economic growth, inflation rates, and
exchange rates, and due to current economic crisis
Social Factors :

Also known as socio-cultural factors are the areas that involve

the shared belief and attitudes of the population. These factors
include population growth, age distribution, health
consciousness, career attitudes and so on. These factors are of
particular interest as they have a direct effect on how
marketers understand customers and what drives them.

In case of Sony television there is no any type of effects are

seen a part from choice of new generation then old one in
Indian market because of a television is a product in which
more or less overall accepted.

Technological factors :

This step entails recognizing the potential technologies that

are available. Technological advancements can optimize
internal efficiency and help a product or service from becoming
technologically obsolete. Role of technology in business is
increasing each year. This trend will continue because R&D
drives new innovations.

Recognizing evolving technologies to optimize internal

efficiency is a great asset in management. But, there are few
threats. Disruptive innovations such as old Sony tv that
Cathode ray tube (CRT) to LED and Plasma new and advanced
features. The best strategy is to adapt according to the
changes. Your strategies should sidestep threats and embrace
opportunities. Following are changes adopted by Sony.

o Digital age is the future developing aspect of the

consumer electronics.
o The production, storage and marketing of Sony products
can be effected by increased use of new technology.
o Technology and innovation has been Sonys passion and
they made a breakthrough in 2002 by launching PS2,
 which included enhanced graphics. This was followed by
the PS3 in 2007 which had Blu-ray
o New TV Technology for 4K, Full HD and Android BRAVIA TVs
All the buzzwords and specs can get pretty confusing, so they
broken out the living room display landscape into three
technologies LCD, plasma and OLED and highlighted some
of the recent innovations and differentiators in each category.

Environmental factors:
These factors include all those that influence or are
determined by the surrounding environment. This aspect of the
PESTLE is crucial for certain industries. Factors of a business
environmental analysis include but are not limited to climate,
weather, geographical location, global changes in climate,
environmental offsets etc.
Both consumers and governments penalize firms for having
adverse effect on the environment. Governments levy huge
fines upon companies for polluting. Companies are also
rewarded for having positive impact on the environment. The
consumers are willing to switch brands if they find a business is
ignoring its environmental duties.

Legal factors:
This step involves learning about the laws and regulations in
your region. It is critical for avoiding unnecessary legal costs.

These factors overview the legal elements. Often, start-ups link

these elements to the political framework. Many legal issues
can affect a company that does not act responsibly. This step
helps to avoid legal pitfalls. You should always remain within
the confines of established regulations.

These factors have both external and internal sides. There are
certain laws that affect the business environment in a certain
country while there are certain policies that companies
maintain for themselves. Legal analysis takes into account both
of these angles and then charts out the strategies in light of
these legislations. For example, consumer laws, safety
standards, labor laws etc.
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