How must SONY change its business strategies for 2010 and beyond?
What is SONY● Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its six operating segments Consumer Products & Services Group (consumer electronics, game & network services), Professional, Device & Solutions Group (B2B products & services), Pictures, Music, Financial Services and Sony Ericsson
Next Generation Strategy in SONY● Target consistent profitability in core hardware businesses (TV, game and digital imaging)● Provide new user experiences integrating innovative hardware, software and services● Reach out to new customers and develop new geographic markets● Increase Sony’s focus on environmentally conscious products and processes
TV, game and digital imaging Strategy● leading market position in LCD TV business● Strengthen profitability of game business● Network-connected products and services
LCD TV● Liquid-crystal display televisions (LCD TV) are television sets that use LCD display technology to produce images● LCD televisions are thinner and lighter than cathode ray tube (CRTs) of similar display size, and are available in much larger sizes. When manufacturing costs fell, this combination of features made LCDs practical for television receivers.
LCD TV Business in SONY● Target returning the LCD TV business to profitability in the fiscal year ending March 31, 2011 and achieving a 20% worldwide market share on a unit basis in the fiscal year ending March 31, 2013.● Create a new revenue model beyond conventional TV business models
Game Business● Increase revenues by expanding hardware/software sales and enrichment of PlayStation®Network services● Improve profitability in the game business by cost reduction and other measures
Game Strategy● Microsoft and Sony are "experimenting" with Kinect and Move for what could be the foundations of their next-generation console plans.● Developing the next-generation PlayStation 4 and there are hints that Microsoft Corp. is also working on the next-gen Xbox Loop.
A few problems SONY● The company’s PlayStation Network was breached by hackers in late April and now several other units of the company have suffered broad security breaches.● Recovery of a brand name