Sony and Indian Market

This report aims to focus on a single, most crucial business environment factor of the Indian market which will help the Sony Corporation to strengthen its competitive position post recession. The research shows that Indian market is recovering from the recession at a fast pace with a GDP of 7.2 % for the 2009-10 year (The CIA World Fact book, 2010). With a promising GDP growth rate of 8.80% in the quarter that ended in June 2010, the GDP growth rate is projected at 8.5% for the 2010-2011 year. The per capita disposable income of India has dramatically increased in the past few years. The per capita disposable income in urban India is projected to increase by almost 67% over the next 5 years (Page 17, Exhibit 6, India Urbanization Econometric Model; McKinsey Global Institute analysis, April 2010). High percentage of young population and rising income levels in India are contributing to changing consumer patterns. Dun & Bradstreet (D&B) India, a leading financial services firm states “We expect Consumption demand to be the major contributor to GDP growth in the coming fiscal, which in turn will augment investment demand. The impetus to consumption demand will come from healthy growth in income levels as job creation gathers pace. The broadening of the income tax slabs will leave more disposable income in hands of consumer and should boost spending. With an increase in disposable income, D&B expects Private final consumption expenditure to grow by around 7.5% in FY11 from an expected 4.5% during FY10.” (India Outlook 2010-2011 by D&B India, [Online] http://myiris.com/newsCentre/storyShow.php?fileR=20100426192946194&dir=2010/04/26) As per the recent report by PricewaterhouseCooopers (PwC), Indians are likely to spend more on entertainment in the coming years with a steady growth in their disposable income (Entertainment Industry in India [Online] http://business.mapsofindia.com/entertainment-industry/ Accessed 22 October 2010).

Sony Corporation, in its essence is a...