Threat of market entrants: Sony faces low threat from the new international market entrants. The reason is that Sony enjoys huge brand loyalty and has many patents in its name. The only threat which can affect the company is economies of scale and any huge investment in the market by a single player.
Threats from substitutes: In the international market, the major threat which Sony faces is from the short product cycle and huge costs involved in research and development activities. The company does have high threat from the substitutes due to limited differentiation of products. There are innumerable substitutes present in the market and the cost involved in buying those products is very less (Doole & Lowe, 2012) . The company needs to be informed if such advancements are being made.
Bargaining power of buyers: The consumers have an upper hand in any of the international markets where the company operates because switching cost is very low and the market is highly price sensitive. This helps the buyers to demand more on quality and reduction in price. The company should be aware of the price range in a particular region and they should capitalize on the same while pitching a product to the customer.
Bargaining power of suppliers: Sony deals with technology. Thus it is quite inevitable that it would struggle to find the right set of suppliers. The company faces problems as the suppliers are scattered and are less in number. The suppliers also have the liberty to increase the prices considering that they are few in number and hence the bargaining power lies with them.
Degree of Rivalry: The main reasons of Sony facing rivalry would be oligopolistic markets, decreasing market sales growth etc. When a market has similar products in a store then the profit margins are bound to decline.