Identify and appraise Sony’s approach to internationalization during the 1990s
Identify and appraise Sony’s approach to internationalization during the 1990s
Instructions
You should approach the questions as if you were a consultant engaged to advise the
management on an appropriate course of action.
Please find the answer for each question from the case, also for each question you have to
find at least 3 concepts related to International Business. For each concept, write a short
explaining for that concept to demonstrate understanding! One page for each question.
For example q#1: ( it should not be in this format, this is just to show you the
requirements for each question!)
A-The answer
– Evidence from the case
– the concepts related to International Business.
B-The answer
– Evidence from the case
– the concepts related to International Business.
C-The answer
– Evidence from the case
– the concepts related to International Business.
Please read the Instructions, questions, and the case carefully.
1: Identify and appraise Sony’s approach to internationalization during the 1990s.
Sony used a variety of foreign entry modes to internationalize in the 1990s. These include
exporting, joint ventures and wholly-owned subsidiaries. Modes of entry are institutional
arrangements that firms choose in international markets. Exporting is the direct sale of products
to another country. In a joint venture, different companies form partnerships and work together.
A wholly-owned subsidiary refers to the establishment of operations in a foreign country.
Sony followed the Uppsala model in its market entry strategy. According to this model,
the internalization of firms goes through logical steps. Firms start small and gain experience
before expanding. Sony started with the less risky entry modes such as exporting and ventured
into other modes such as wholly-owned subsidiaries after gaining enough experience and
confidence in those markets. Sony expanded into international markets in several steps. During
the early 1990s, the firm opened wholly-owned subsidiaries in Europe and entered into minority
joint ventures towards the end of the decade. In Asia, Sony opened wholly-owned subsidiaries
throughout the decade.
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