This study is based on the market imperfection theory that tries to explain the reasons behind an enterprise's expansion and globalization. This theory argues that if a firm is going to expand internationally, it must possess four main kinds of advantages: Those related to technology, brand differentiation, control of distribution channels and scale economies.

The study tries to apply this theory to the case of the Japanese enterprise Sony that was founded in 1946 as a small enterprise in a commercial center in Tokyo and managed to become in a short period of time a big multinational company. The study reveals the main reasons and factors that have contributed to the building of Sony's power as related to the four mentioned dimensions, and which was reflected in the impressive success of this company.