Economic Factors

Sony’s performance depends on economic trends. Sony needs to consider the following economic
external factors in it’s remote or macro-environment:

1. The high growth of developing markets (opportunity)

2. The economic stability of developed markets (opportunity)
3. Increasing disposable incomes (opportunity)

Sony has the opportunity to grow alongside economic growth in developing markets. These
markets have the highest growth rates, which can boost the company’s overall revenues. In
addition, the economic stability of developed markets presents opportunities for Sony to enhance
its operations while experiencing minimal market-based risks. Another consideration is the
increasing level of disposable income worldwide. This external factor creates opportunities for
Sony to grow its revenues. For example, the company can market the PlayStation more
aggressively, based on the expectation that customers are increasingly capable of buying the
product.

Technological Factors

Sony depends on technologies used in its business and technologies that facilitate the use or
consumption of its products. The effects of technological trends and conditions on the remote or
macro-environment of firms are considered in this aspect of the PESTEL/PESTLE analysis. Sony must
address the following technological external factors:

1. Increasing dependence on digital technologies (opportunity)

2. The high rate of adoption of mobile technologies (opportunity)
3. The high rate of R&D activity (threat & opportunity)

Sony Corporation has growth opportunities based on the increasing dependence on digital technologies.
This external factor points to increase individual and organizational demand for digital technologies. For
example, the integration of digital technology in smart homes presents new markets or market expansion
opportunities for Sony. In relation, the company can exploit the high rate of adoption of mobile
technologies by innovating its mobile devices for higher competitiveness and revenue generation. On the
other hand, the high rate of research and development (R&D) activity among firms increases their
competitiveness against Sony. This external factor is a threat because it creates more challenges against
the company. Nonetheless, based on the same external factor, Sony has opportunities to grow its
electronics, gaming, entertainment, and financial services businesses.