2024

CONSUMER BEHAVIOR FINAL PRESNETATION

A L Y T A R E K
M A L A K A Y M A N
N O U R H A N Q A W I
O M A R S H E R E E N
M A R Y G E R G E S

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TABLE OF CONTENTS
A NEW CHALLENGE FOR
1 SONY EGYPT 6 DIRECT COMPETITORS

2 SONY EGYPT TEAM

7 COMPETITIVE PRICING MODEL

CONSUMER ELECTRONICS MARKET CHALLENGES &

3 MARKET IN EGYPT 8 LEGALITY OF THE BUSINESS

COMPETITORS’ RESPONSE
4 FILLING THE GAP
9 TO SONY EGYPT

SONY EGYPT’S CURRENT EXPANSION IDEAS FOR

5 MARKETING STRATEGY 10 SONY EGYPT

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A NEW CHALLENGE FOR EGYPT

1. Current Success: 2. Emerging Threat:
• Ahmed El-Badry, General Manager of Sony Egypt, oversees • An industry report indicates aggressive moves by main
a successful year in 2019 with significant growth in sales of competitors Samsung and LG, planning to introduce
consumer electronics, especially televisions and gaming affordable, high-tech products to increase their market
products. share in Egypt.
• Successful product launches and marketing campaigns have • Huawei is also preparing to enter the Egyptian market
contributed to a vibrant atmosphere. with competitively priced smart TVs and innovative
consumer electronics.

3. Impact on Sony: 4. Strategic Questions:

• The entry and expansion of competitors threaten • How should Sony Egypt respond to the aggressive
Sony’s market dominance, market share, and moves by competitors?
profitability. • What strategies should be implemented to retain and
• Competitors are known for competitive pricing and grow market share?
advanced technology. • How can Sony leverage its brand reputation and
technological prowess to stay ahead?

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A NEW CHALLENGE FOR EGYPT

5. Opportunities and Assets:
• Sony’s strong brand presence and loyal customer base in Egypt are
significant assets.
• Increasing consumer demand for high-quality electronics in the region
Sony's HQ in Minato City ,
Tokyo , Japan presents growth opportunities.

6. Need for Innovation and Strategy:

• Sony needs to defend its market position and explore new growth
strategies.
• Consideration of how Sony can innovate to differentiate itself from
competitors.
• Evaluation of marketing and operational strategies to capitalize on
emerging trends and consumer preferences in the Egyptian market.
• Strategies to maintain brand loyalty while attracting new customers in a
rapidly evolving landscape.

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KEY 1. Product Innovation and Differentiation:

• How can Sony leverage its R&D to introduce unique features
CONSIDERATIONS and products that stand out from competitors?
• What product lines should Sony focus on to meet the evolving

FOR SONY EGYPT demands of Egyptian consumers?

1946 - Sony's First electric

rice cooker product

2. Marketing and Branding: 3. Pricing Strategy:

• What marketing strategies can Sony implement to enhance brand
• How should Sony balance between premium pricing and
visibility and loyalty amidst increased competition?
affordability to attract a broader customer base?
• How can Sony effectively communicate the value and 1950 - Type-G , First tape
• Are there opportunities for introducing budget-friendly
superiority of its products over competitors? recorder
options without compromising on quality?

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4. Sales and Distribution:

KEY • What channels can Sony utilize to expand its reach across Egypt,
including online and offline platforms?
CONSIDERATIONS • How can Sony improve its supply chain efficiency to ensure
timely delivery and availability of products?

FOR SONY EGYPT 1990 - Sony's First MiniDisk

5. Customer Experience: 6. Competitive Response:

• What initiatives can Sony implement to enhance customer • How should Sony monitor and respond to the strategies of
service and support in Egypt? Samsung, LG, and Huawei in real-time?
• How can Sony engage with its customers to build a community • What partnerships or alliances could Sony explore to strengthen
and foster brand loyalty? its market position?
2020 - New Evolution in
Games with PS5

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1.Ahmed El-Badry - General Manager

• Alumnus of Cairo University with a degree in Electrical
Engineering.
EGYPT TEAM • Background in engineering and business management.
• Previous leadership roles in multinational corporations.
• Expertise in strategic vision and operational management.

2. Fatma Hassan - Operations Director: 3. Karim Mahmoud - Sales and Marketing

• Extensive experience in supply chain management and logistics.
•
Manager:
MBA from the American University in Cairo.
• Background in business administration.
• Proven track record in optimizing operational efficiency.
• Expertise in consumer behavior and market trends.
• Focus on seamless execution of business strategies.
• Develops innovative marketing campaigns and sales strategies.
• Enhances brand visibility and drives revenue growth.

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4. Noura Ali - Finance Director:

• Chartered Accountant with extensive financial management
experience.
EGYPT TEAM • MBA from the Arab Academy for Science, Technology &
Maritime Transport.
• Responsible for financial planning and budgetary control.
• Provides strategic financial insights.

5. Tarek Ibrahim - Technology and Innovation 6. Sara Mohamed - Customer Experience

Lead: Manager:
• Expert in technology and innovation. • Background in psychology and customer service management.
• Background in computer science and engineering. • Dedicated to ensuring memorable and satisfactory customer
• Drives product development and technological advancements. interactions.
• Focus on software development and emerging technologies. • Builds strong customer relationships and exceeds customer
expectations.

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CONSUMER ELECTRONICS MARKET IN EGYPT

Egypt is one of the largest and most densely populated countries in the region. Cairo, its capital city, ranks 21st in terms of
population density of all cities around the globe, representing approximately 9,400 people per km². With a population
growth rate of 2.28% over the previous 63 years, Egypt’s initial urban infrastructure was not built to sustain such a rapidly
growing population. As a result, the demand for modern amenities, including consumer electronics, has significantly
increased.

Key Segments:
• Televisions: High demand for smart TVs and 4K
The Market Landscape :
technology, driven by a desire for better home
The consumer electronics market in Egypt is characterized by a strong
entertainment options.
demand for both basic and advanced electronic products. With a youthful
population and a growing middle class, there is a significant appetite for the
• Mobile Phones: A rapidly growing segment, with
latest technology. However, economic challenges and currency fluctuations
consumers looking for advanced features, affordability,
have impacted purchasing power and affordability
and durability.

• Gaming Consoles: Increasing popularity among

younger demographics, particularly with the rise of e-
sports and online gaming.

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CONSUMER ELECTRONICS MARKET IN EGYPT

Recent Developments: Challenges:
Recently, several technology-based private companies have • Affordability: Despite the presence of various brands, high-quality
entered the consumer electronics market, leveraging e- electronics often remain out of reach for many consumers due to
commerce platforms to reach a broader audience. Online economic constraints.
retailers like Jumia and Souq have become popular for
purchasing electronics, offering competitive pricing and • Currency Fluctuations: The fluctuating value of the Egyptian pound
convenient delivery options. Additionally, installment plans and affects pricing and inventory costs for retailers.
financing options have been introduced to make high-value
electronics more accessible. • Technological Advancements: Rapid advancements in technology
necessitate continuous innovation and adaptation by companies to meet
consumer demands.

Competitive Landscape:
The Egyptian consumer electronics market is highly competitive, with
both international and local brands vying for market share. Major
players include Samsung, LG, and Huawei, alongside a growing
"Kenichiro Yoshida" number of Chinese brands offering competitive pricing.
CEO Of Sony since 2018

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CONSUMER ELECTRONICS MARKET IN EGYPT

The Opportunity for Sony Egypt: Strategic Initiatives:

For Sony Egypt, these market dynamics present both challenges and • Product Localization: Developing products tailored to the specific needs
opportunities. To succeed, Sony needs to focus on strategies that and preferences of Egyptian consumers.
address affordability, technological innovation, and consumer
engagement • Affordable Pricing: Introducing budget-friendly product lines without
compromising on quality.

• E-commerce Expansion: Strengthening online presence and partnering

Trends:
with local e-commerce platforms to reach a wider audience.
• E-commerce Growth: A significant increase in online shopping for
electronics, driven by convenience and better pricing.
• Consumer Financing: Offering flexible payment options and installment
plans to make high-value electronics more accessible.
• Smart Home Devices: Growing interest in smart home technologies,
including connected appliances and home automation systems.

• Sustainability: Increasing demand for energy-efficient and

environmentally friendly electronics.

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FILLING THE GAP

Ahmed El-Badry formulated a revitalized strategy for Sony Egypt after identifying the gaps and inefficiencies in the regional
consumer electronics market. Despite the presence of global players such as Samsung and LG, El-Badry and his team recognized
that a significant portion of the market, particularly the urban middle class, was underserved. While competitors offered high-end
products that appealed to affluent consumers, their steep prices and premium positioning made them inaccessible to the average
Egyptian household.

STRATEGY FOCUSED ON THREE KEY

AREAS
1. Product Localization and Affordability: 2. Enhanced Distribution Channels: 3. Consumer Financing and After-
Sony Egypt conducted extensive market research to understand the Recognizing that traditional retail was not sufficient to
specific needs and preferences of Egyptian consumers. This led to the reach the vast and diverse Egyptian market, Sony Egypt
Sales Support:
development of a range of products that combined Sony's renowned expanded its distribution channels. This included To address the economic constraints faced by many
quality with features tailored to local preferences, such as energy partnerships with local e-commerce platforms like Jumia consumers, Sony Egypt introduced flexible payment plans
efficiency, durability, and ease of use. By optimizing the supply chain and Souq, as well as setting up branded stores in key urban and installment options. This made it easier for consumers
and leveraging local manufacturing where possible, Sony was able to centers and collaborating with local electronics retailers. to afford high-value electronics without a significant
reduce costs and offer products at competitive prices These steps ensured wider availability and visibility of upfront cost. Additionally, Sony Egypt invested in robust
Sony products. after-sales support, including local service centers and a
responsive customer service team, to build trust and ensure
customer satisfaction.

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SONY EGYPT’S CURRENT MARKETING STRATEGY

Given its established presence in the market but facing fierce competition from both global and local brands, Sony Egypt was
actively engaging in a multi-faceted marketing strategy aimed at reinforcing its brand image and expanding its market share. Sony
Egypt's strategy balanced both push and pull marketing techniques, aiming to attract new customers while retaining existing ones.

Push Strategy Pull Strategy Product Quality and Promo Codes and
Implementation Transition Innovation Special Discounts

In-Store Promotions and Strategic Placement Strategic Placement Competitive Pricing

Demonstrations

In-Store Promotions and Brand Loyalty Digital Advertising & Social

Demonstrations Programs Media Campaigns

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DIRECT COMPETITORS

Innovation and Product Marketing and Promotion:

Range: Samsung employs aggressive marketing
Samsung is renowned for its continuous strategies, leveraging both traditional and digital
innovation and broad product range. In the media to promote its products. The company
television sector, Samsung offers state-of-the- often uses high-profile endorsements and
art technologies such as QLED and 8K partnerships to enhance its brand image.
resolution, which have garnered significant Samsung’s promotional campaigns are highly
attention and market share. Similarly, in the visible in major cities across Egypt, including
smartphone market, Samsung’s Galaxy series extensive advertising on billboards, social
competes fiercely with Sony’s Xperia line, media, and TV commercials
offering features like advanced camera Distribution and Retail Presence:
systems, foldable screens, and high- Samsung has a robust distribution network, ensuring its
performance processors products are widely available across various retail channels,
from large electronics stores to smaller independent shops.
The company also invests in dedicated Samsung-branded
stores and online platforms, providing consumers with easy
access to their products.

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DIRECT COMPETITORS

Technological Excellence: Customer Engagement:

LG is particularly strong in the television market, LG engages customers through various
where its OLED technology is considered a initiatives, including in-store demonstrations,
benchmark for picture quality. LG’s commitment interactive displays, and hands-on experience
to innovation extends to other product lines as zones. This approach allows potential buyers to
well, with a focus on smart home technologies and interact with products directly, fostering a deeper
energy-efficient appliances that appeal to the connection with the brand.
environmentally conscious consumer

Competitive Pricing:
LG often positions itself as a cost-effective alternative to other
premium brands. By offering high-quality products at competitive
prices, LG appeals to a wide range of consumers, from budget-
conscious buyers to those seeking premium features at a more
affordable cost

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DIRECT COMPETITORS

Diverse Product Offerings: Focus on Quality and Reliability:

Panasonic’s product lineup is diverse, covering Panasonic emphasizes the quality and reliability of its
everything from televisions and audio systems to products. The brand has built a reputation for
refrigerators and washing machines. The company is manufacturing durable goods that offer excellent
known for its reliable and durable products, which are performance over time, which is a significant selling point
highly valued by consumers in Egypt for consumers looking for long-term value

Sustainability Initiatives:
Panasonic is committed to sustainability and energy efficiency,
integrating eco-friendly technologies into its products. This
commitment resonates well with environmentally conscious
consumers and helps differentiate Panasonic from other brands in
the market

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DIRECT COMPETITORS

Healthcare Technology: : Smart Home Solutions:

In addition to consumer electronics, Philips has Philips has been a pioneer in smart home
a strong presence in the healthcare technology solutions, particularly with its Hue smart lighting
sector. This diversification allows the company system. This innovation aligns well with the
to leverage its technological advancements growing trend of smart homes and IoT (Internet
across different product categories, enhancing of Things), providing consumers with integrated
its overall brand strength solutions that enhance convenience and energy
efficiency

Brand Loyalty and Trust:

Philips enjoys strong brand loyalty and trust, built over decades of
delivering high-quality products. This brand equity helps Philips
maintain a strong position in the market, even in the face of fierce
competition from other global brands

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COMPETITIVE PRICING MODELS

12,000 EGP 155,000 EGP

10,000 EGP 150,000 EGP

9,500 EGP 145,000 EGP

10,000 EGP 140,000 EGP

15,000 EGP 135,000 EGP

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COMPETITIVE PRICING MODELS

5,000 EGP 20,000 EGP

5,000 EGP 30,000 EGP

3,500 EGP 18,000 EGP

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COMPETITIVE PRICING MODELS

9,000 EGP 50,000 EGP

10,000 EGP 50,000 EGP

10,500 EGP 58,000 EGP

9,000 EGP 45,000 EGP

9,500 EGP 42,000 EGP

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1. Economic Fluctuations:
⚬ Significant fluctuations in the Egyptian economy,
MARKET including currency devaluation, inflation, and subsidy
reductions.

CHALLENGES ⚬ Decreased consumer purchasing power affects spending on

high-end electronics.
⚬ Need for continuous adaptation of pricing and product
offerings to attract price-sensitive consumers.

2. Consumer Preferences: 3. Competition:

⚬ Growing demand for high-quality, innovative ⚬ Competes with major global brands like Samsung, LG,
products at affordable prices. Panasonic, and Philips.
⚬ Preference for smart and connected devices. ⚬ Competitors are aggressive in pricing, promotional
⚬ Continuous investment in research and development strategies, and technological advancements.
needed to balance cutting-edge technology with ⚬ Requires heavy investment in marketing, innovation, and
affordability. customer engagement to stay competitive.

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LEGALITY OF THE BUSINESS

Regulatory Compliance:
• Adherence to local regulations including import laws, tax compliance, and
product standards. Import Restrictions and Tariffs:
• Periodic updates to regulations require a robust legal and compliance ⚬ Impact of import restrictions and tariffs on the cost of bringing
framework to avoid penalties or sales restrictions. products into Egypt.
⚬ Tariffs on electronic goods can increase retail prices and affect
Intellectual Property (IP) Protection: demand.
• Prevalence of counterfeit products and IP theft in Egypt. ⚬ Strategic management of supply chain and pricing to mitigate
• Need to work with local authorities to enforce IP laws and protect patents, tariff impacts.
trademarks, and copyrights.
Legal Disputes:
Localization Requirements: ⚬ Potential legal disputes related to contracts, consumer rights, or
⚬ Government encouragement for localization of production and competition laws.
employment. ⚬ Requires a dedicated legal team for prompt resolution.
⚬ Pressure to increase local content in products and hire more local ⚬ Ensuring fair business practices and transparent dealings to
employees. minimize legal challenges.
⚬ Balancing localization with global quality standards and
operational efficiency.

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STRATEGIES TO OVERCOME CHALLENGES

Adaptable Pricing Strategies:
⚬ Implement flexible pricing with a range of products at various price
points.
⚬ Ensure accessibility for both premium and budget-conscious
consumers. Strengthening Legal Compliance:
⚬ Maintain a robust compliance program updated with local
regulations.
Enhanced Customer Engagement:
⚬ Invest in legal training for staff and establish strong relationships
⚬ Build strong customer relationships through personalized marketing
with local regulatory bodies.
and exceptional customer service.
⚬ Implement loyalty programs and use data analytics to tailor products
IP Protection Initiatives:
and promotions.
⚬ Collaborate with local law enforcement to combat counterfeit
products.
Local Partnerships:
⚬ Raise consumer awareness about the importance of buying
⚬ Form strategic partnerships with local businesses to meet
genuine products.
localization requirements.
⚬ Enhance distribution networks, improve product accessibility, and
align with government policies.

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COMPETITORS’ RESPONSE Aggressive Marketing and Promotions:

⚬ Robust marketing strategy with heavy advertising, strategic
TO sponsorships, and promotions.
⚬ Offers substantial discounts during major shopping events
and holidays.
⚬ Utilizes bundle deals to enhance perceived value for
customers.

Innovation and Product Range: Local Manufacturing and Assembly:

⚬ Samsung introduces innovative products leveraging extensive ⚬ Invests in local manufacturing and assembly to mitigate import
R&D. tariffs and appeal to nationalistic sentiments.
⚬ Examples include QLED TV range competing directly with ⚬ Reduces costs and aligns with government initiatives to boost local
Sony’s BRAVIA line.
production.
⚬ Offers advanced features appealing to tech-savvy consumers.
⚬ Gives Samsung a competitive edge in pricing and regulatory
compliance.

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COMPETITORS’ RESPONSE Energy Efficiency and Sustainability:

• Emphasizes energy efficiency and eco-friendly products.
TO • Features like Inverter technology in refrigerators and washing
machines reduce energy consumption, offering long-term cost
savings.
• Aligns with global trends towards sustainability, differentiating
LG from competitors.

Strategic Partnerships and Local Adaptation: Focus on Affordability:

• Forms strategic partnerships with local distributors and retailers for • Positions products as high-quality yet affordable
widespread availability and service support. alternatives to premium brands like Sony.
• Adapts product features to suit local preferences and requirements, such as • Resonates well with the Egyptian middle class seeking
developing air conditioners for hot climates. value without compromising quality.
• Enhances appeal in the Egyptian market through localized strategies. • Competitive pricing often undercuts Sony’s products,
attracting budget-conscious consumers.

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COMPETITORS’ RESPONSE Diverse Product Portfolio:

⚬ Leverages a broad product portfolio spanning home
TO appliances, personal care, and healthcare products.
⚬ Offers a variety of products catering to diverse
consumer needs, ensuring steady market presence
across different segments.

Quality and Reliability: Health and Wellness Focus:

⚬ Known for reliable and durable products, building ⚬ Capitalizes on growing emphasis on health and wellness.
consumer trust and loyalty. ⚬ Offers innovative healthcare products such as air purifiers and
⚬ Preferred brand for essential appliances like blenders, sleep therapy devices.
irons, and shavers due to reputation for quality. ⚬ Increasingly popular among health-conscious consumers,
helping Philips carve out a niche market.

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COMPETITORS’ RESPONSE
TO

Customer Engagement and Loyalty Programs: Strategic Pricing and Promotions:

• Build strong customer relationships through enhanced after-sales service and • Adopt flexible pricing strategies including periodic
personalized marketing. promotions and bundle deals.
• Implement loyalty programs and offer extended warranties to enhance customer • Collaborate with local financial institutions to offer
satisfaction. installment plans for high-end products.

Innovation and Technology Leadership: Local Partnerships and Customization:

• Form partnerships with local retailers and distributors to improve
• Emphasize technological leadership with cutting-edge products and advanced
market penetration.
features.
• Customize products to meet local preferences, such as energy-
• Invest in AI and smart home technologies to appeal to tech enthusiasts.
efficient appliances or tailored entertainment systems.

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EXPANSION IDEAS
LAUNCHING EXPANSION VENTURES

Casablanca, Morocco, North Africa:

⚬ Attracted by growing middle class and demand for high-quality
electronics.
⚬ Focus on competitive pricing, localized content, and strong
after-sales support.
⚬ Differentiation through superior product quality, innovative
Hassan II Mosque ,
technology, and exclusive gaming content.
Casablanca , Moroco

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EXPANSION IDEAS
LAUNCHING EXPANSION VENTURES

Riyadh, Saudi Arabia, Middle East:

• Significant opportunity in a rapidly growing economy with
high disposable income.
• Introduction of full range of consumer electronics.
• Strategy includes partnering with local retailers, establishing
local customer service center, and capitalizing on government
Center Point, Riyadh, Saudi
Arabia
initiatives.

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EXPANSION IDEAS
LAUNCHING EXPANSION VENTURES

Ho Chi Minh City, Vietnam, Southeast

Asia:
⚬ Targeting burgeoning tech market and youthful population.
⚬ Introduction of tailored products to meet local preferences.
⚬ Collaboration with local influencers and digital marketing
campaigns for brand awareness.
⚬ Establishment of local R&D unit to customize products and
develop new features.

Temple Of Literature, Ho Chi

Minh City, Vietnam

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EXPANSION IDEAS

2. Investment in Research and 3. Market Focus:

• Expansion focus on North Africa, Middle East, and Southeast
Development:
Asia due to similar consumer behavior and technological needs.
Establishment of Research and Development Center in
• Prioritization of regions with growing middle class, increasing
Berlin to develop new product features, improve
demand for electronics, and supportive government initiatives.
operational efficiencies, and attract global talent.

4. Strategic Differentiation:
• Differentiation through superior product quality, innovative
technology, localized content, and strong after-sales
support.
• Focus on leveraging brand reputation for quality and
innovation to compete in intense markets.

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THE CHALLENGE FACED BY SONY EGYPT

1) International Expansion Necessity: 4) Resonating with Consumer Preferences:

⚬ Reflecting on a successful year, Sony Egypt ⚬ How to ensure Sony's products resonate with varied consumer
recognized the need for international expansion to preferences across different regions during expansion.
sustain growth.
5) Comprehensive Strategy Development:
2) Challenges of Market Entry: ⚬ Ahmed El-Badry and his team must develop a comprehensive
⚬ Facing the challenge of effectively entering diverse strategy that addresses these questions while leveraging their
and competitive markets dominated by global and strengths in technology, quality, and brand reputation.
regional players like Samsung and LG.
6) Requirement for Market Understanding:
3) Competitive Strategy Development: ⚬ Expansion into new markets requires not only financial investment
⚬ Need to devise competitive strategies to retain and but also a deep understanding of local market dynamics and
grow market share and customer base in new markets. consumer behavior.

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OVERVIEW OF
Background:
Sony Egypt, a subsidiary of the global electronics giant Sony, is facing significant challenges in
the Egyptian consumer electronics market.
Sony's HQ in Minato City ,
Tokyo , Japan
Main Issue:
Increased competition from major players such as Samsung, LG, and Huawei, who are
launching affordable, high-tech products that threaten Sony's market share.

Leadership:
The case examines the leadership of Ahmed El-Badry and his team in navigating these
challenges.
⚬ Competition: Central theme focusing on how to compete with aggressive market tactics
from rivals.
⚬ Sustainability: Examines the sustainability of Sony Egypt’s current business model and
strategies.
⚬ Adaptation and Innovation: Highlights the need for adapting and innovating in
response to competitors.

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ASSIGNMENT QUESTIONS AND ANALYSIS

1. Analyze Sony Egypt's current market position in the Egyptian consumer electronics industry. What are the key
challenges the company is facing in this competitive market?

1. Market Position and Challenges:

Strengths: Sony Egypt enjoys brand recognition, a reputation for quality, and a diverse product portfolio.
Weaknesses: They might face competition on price from local and regional brands. Their distribution network might
not reach all segments of the Egyptian market.

Challenges:

Price competition: Lower-priced competitors can be attractive in a market with fluctuating currency value and
inflation.
Economic factors: Economic fluctuations can impact consumer purchasing power.
Shifting consumer preferences: Rapid technological advancements and changing trends require constant product
innovation.
E-commerce growth: Sony needs to adapt its sales strategy to compete effectively online.

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ASSIGNMENT QUESTIONS AND ANALYSIS

2. Apply Porter's Five Forces model to assess the competitive dynamics within the Egyptian consumer electronics
market and evaluate the intensity of competition, bargaining power of buyers and suppliers, threat of new entrants,
and threat of substitutes.

2. Porter's Five Forces Analysis:

• Threat of New Entrants: Moderate. Entering the electronics market requires capital and established distribution
channels. However, competition from regional brands can be a threat. Bargaining Power of Suppliers:
Moderate-High. Global component shortages and reliance on a few key suppliers can give them leverage.

• Bargaining Power of Buyers: High. Price sensitivity and a wide range of options give buyers significant power.

• Threat of Substitutes: High. Consumers have a variety of options for entertainment and communication,
threatening specific product categories.

• Competitive Rivalry: High. The market is crowded with established local, regional, and international brands.

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ASSIGNMENT QUESTIONS AND ANALYSIS

3. Discuss the strategic initiatives that Sony Egypt can undertake to maintain or enhance its competitive advantage
in the Egyptian market. Consider factors such as product differentiation, pricing strategies, distribution channels,
and marketing efforts.

3. Strategic Initiatives:

• Product Differentiation: Focus on innovation, premium features, and design to differentiate from competitors.

• Pricing Strategies: Offer competitive pricing alongside premium options. Consider online-exclusive promotions
or bundled product packages.

• Distribution Channels: Expand online presence, partner with major electronics retailers, and explore smaller
regional distributors to reach more customers.

• Marketing Efforts: Target specific demographics with relevant messaging, leverage social media marketing, and
emphasize brand heritage and innovation.

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ASSIGNMENT QUESTIONS AND ANALYSIS

4. Conduct a SWOT analysis for Sony Egypt, identifying the internal strengths and weaknesses as well as the external
opportunities and threats facing the company within the Egyptian market. Based on this analysis, propose strategic
recommendations for Sony Egypt to capitalize on its strengths and mitigate potential threats.

4. SWOT Analysis and Recommendations:

• Strengths: Brand recognition, product quality, diverse portfolio.

• Weaknesses: Price competitiveness, distribution network reach.
• Opportunities: E-commerce growth, rising demand for smart devices.
• Threats: Economic fluctuations, intense competition, substitute products.

Recommendations:

• Capitalize on strengths: Leverage brand recognition through targeted marketing campaigns.

• Address weaknesses: Develop more competitive pricing strategies and expand distribution reach.
• Seize opportunities: Invest in e-commerce platforms and cater to the smart device market.
• Mitigate threats: Develop strategies to navigate currency fluctuations and economic changes.

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ASSIGNMENT QUESTIONS AND ANALYSIS

5. Evaluate the potential for international expansion for Sony Egypt into other markets within the MENA region.
Identify and analyze the opportunities and challenges associated with expansion into specific countries, and propose
suitable market entry strategies and adaptation measures for Sony Egypt to succeed in these new markets.

5. International Expansion Potential:

• MENA Region Opportunities: Growing economies, rising middle class, increasing disposable income.
• Challenges: Varying economic conditions, cultural nuances, established competitors in each market.
• Market Entry Strategies: Partner with local distributors. Adapt product offerings to local preferences. Develop
localized marketing campaigns. Consider regional assembly or manufacturing for cost-competitiveness.

Examples:

• Saudi Arabia: High disposable income, focus on premium products and online sales.
• United Arab Emirates: Tech-savvy population, emphasize innovation and smart home solutions.

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OUR TEAM

NOURHAN QAWI MALAK AYMAN ALY TAREK

A CONSUMER BEHAVIOR PRESNETATION

MARY GERGES OMAR SHEREEN

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