Florida Sony Store is an established outlet store of the largest network of Sony electronics manufacturer of audio, video, communications and information technology products (Sony Corporation of America 2010, p. 1). The store retails and services all Sony products within the local market territory. In this business plan we focus only on this outlet alone and not the entire Sony Company. The purpose of this business plan is to help the store management of Florida Sony Store to develop business strategies targeting at cost efficiency, quality and focus on customer satisfaction so as to maximize its revenues.Business Strategy
With the help of the SWOT analysis and Marketing Strategy for the outlet, we establish the business strategy of the Sony Store.The Sony Store benefits from the strong brand name of the entire Sony network which is known globally making it possible to penetrate all viable markets easily. In addition, Sonny has attained and maintained leadership position in the electronics industry due to its superior quality products. Moreover, the Sony products are unique in the market and produced through the highest innovation techniques available thus maintaining its dominance in the sector. Furthermore, Sony has a strong financial base out of its successful strategies and loyal customers who have developed outstanding relationship with Sony (Pride and Ferrell 2008, p. 55; Harris 2001, p. 55).The Sony store has had some few weaknesses in its business processes. They include the fault products which are sometimes manufactured and find their way to stores without being noticed. Moreover, the cost of hardware is high (WikiSWOT 2010, p. 1). This will include the hardware used for manufacture and the parts used in servicing the products. These make the cost of business to go up.There are opportunities for the Sony Store to expand its markets and penetrate more in its local market well. Moreover, innovations at the store could be utilized to produce the best services and products to enhance quality. Furthermore, the store could explore the opportunities of acquiring small electronic stores in the surrounding to enable it control the entire territory thus maximizing on its profits (WikiSWOT 2010, p. 1).
The competition from other major brands like Samsung, Philips as well as local electronic dealers is threatening the Sony Store. The other threat is posed by the economic conditions which reduce its sales because most of its electronics are rather luxuries and people would cut down at bad economic times. Moreover, cheaper technology has made imports of cheaper electronics available in the local market thus threatening the market share of Sony due to their competitive prices as compared to quality Sony products which may cost high in the market (WikiSWOT 2010, p. 1).Marketing Strategy
The Sony Company is engaging in a marketing strategy of opening new markets and expansion to cover large areas and new potential customers. In addition to creation of new markets, the company listens to the customer need and innovates ways of meeting those needs. Moreover, the marketing team in collaboration with design and production teams take greater duty to ensure that the innovative design meets the current production patterns as well as market demands. Furthermore, another marketing strategy used by Sony is to monitor the profit or loss made per specific product. This will enable the marketing team to create marketing strategies focusing on those particular product lines up to a point where all products have satisfactory profit margins (Wolf 1008, p. 180).Analysis of Profit and Loss
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The company has a strong financial position which is attributed to the sound financial management policies of the Sony store as well as economic condition which is recovering from recession experienced recently. The cost of sales is expected to rise at a slower rate as compared the growth in revenue. We expect cost of sales to be $159,300, $ 162,000 and $166,000 in the 1st
years respectively (Berry 2010, p. 1).Due to aggressive marketing strategies, we expect the revenues to grow more than the cost of sales in the consecutive three year and this is going to give us the gross profits of $180,700, $197,000 and $238,000 respectively (Berry 2010, p. 1). This actually indicates that we shall increase our sales as we keep our costs down.Our major expense that we anticipate is staff costs in form of payroll expenses which will take $132,000, $146,000 and $158,000 respectively for the three years. The people are the assets of Sony and as such should be rewarded so as to put in more effort. The other expenses are administrative costs which do not take much of the costs thus ending with total operating expenses of $180,600, $184,700 and $198,500 respectively (Berry 2010, p. 1).The resulting effect is that we shall expect a loss of $4,315 for the first year because we had an increase in rent which was not covered by the revenue. However, we expect the net profit of $6,244 and $26,040 for the 2nd
years respectively. The appendixes at the end of this business plan give the actual income statement and the balance sheet.Profitability of the Business
The business store has been making profits continuously for the past periods but we anticipate loss of the first year caused by increased rent because of increased space which may not be fully utilized at once due to logistical reasons. This makes it to be expenditure without direct revenues generated from the building for the first year. However, from the 2nd
years the whole space would have been fully stocked and full returns anticipated.The business shall ensure its profitability is enhanced by investing in cost reduction innovative ways. This cost cutting plays an integral part of the entire Sony group to enhance its profits and as a store it adopts. Moreover, increased turnover due to expanded markets increases profitability of Sony Store. In addition, Sony store profitability is enhanced by diversification strategy that has brought a lot of its different products in the market (Wolf 2008, p. 181).Although there has been fierce competition in the industry of electronics, Sony is still the market leader in innovation and product diversification. Moreover, due to its unrivalled quality products the Sony Store will be able to grow and cover its entire territory successfully with the benefit of the well known brand name of entire conglomerate.Since the Sony Store is close to the immediate customer, I recommend that the company carry our frequent market research so as to obtain the latest market trend requirements. By obtaining the information directly from consumers will enable the Sony store to implement those strategies that directly affect its local consumers rather than depending on the research of the entire conglomerate.