How must SONY change itsbusiness strategies for 2010       and beyond?     s1160231 Shuhei Yamashita
Summary1. New form2. New form → Meaning3. Four initiatives4. Four initiatives → Goals5. Details of these initiatives are a...
1. New reformSony has reformed its organizational structure in order tobolster profitability and transform its operations,...
2. New form → MeaningThis also means that Sony is becoming a quicker, leanerorganization which is more responsive to thema...
3. Four initiativesIn order to permit further growth and continue to enhanceprofitability, Sony is implementing additional...
4. Four initiatives → GoalsThrough these measures, Sony targets an annual 5% operatingincome margin and a 10% return on eq...
5. Details of these initiatives are as follows・Target consistent profitability in core hardware businesses (TV,game and di...
6. Target consistent profitability in core hardwarebusinesses (TV, game and digital imaging) - (1)Regain the leading marke...
6. Target consistent profitability in core hardwarebusinesses (TV, game and digital imaging) - (2)Strengthen profitability...
6. Target consistent profitability in core hardware businesses (TV,game and digital imaging) - (3)Maintain leading positio...
7. Provide new user experiences integratinginnovative hardware, software and services - (1)Network-connected products and ...
7. Provide new user experiences integratinginnovative hardware, software and services - (2)Expand 3D-related product busin...
8. Growth strategies for lithium-ion batterybusiness• Secure high profitability in existing businesses.• Analyze possible ...
9. Reach out to new customers developnew geographic markets• Strengthen direct marketing strategies.• Promote Sony Group’s...
10. Increase Sony’s focus on environmentallyconscious products and processes• Target absolute 30% reduction in greenhouse ...
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20101211

  1. 1. How must SONY change itsbusiness strategies for 2010 and beyond? s1160231 Shuhei Yamashita
  2. 2. Summary1. New form2. New form → Meaning3. Four initiatives4. Four initiatives → Goals5. Details of these initiatives are as follows6. Target consistent profitability in core hardware businesses (TV, game anddigital imaging) - (1)~(3)7. Provide new user experiences integrating innovative hardware, software andservices - (1)~(2)8. Growth strategies for lithium-ion battery business9. Reach out to new customers develop new geographic markets10. Increase Sony’s focus on environmentally conscious products and processes
  3. 3. 1. New reformSony has reformed its organizational structure in order tobolster profitability and transform its operations, with theaim of accelerating innovation and growth and optimizingbusiness processes, particularly within its electronics andnetworked service business.
  4. 4. 2. New form → MeaningThis also means that Sony is becoming a quicker, leanerorganization which is more responsive to themarket. They have promised that they will no longerdevelop products based on underlying technologies, butrather focus on the user experience. Please keep an eyeout for some exciting developments weve spotted in thispresentation in the future posts.
  5. 5. 3. Four initiativesIn order to permit further growth and continue to enhanceprofitability, Sony is implementing additional transformationmeasures centering on the following four initiatives:- Target consistent profitability in core hardware business (TV,game and digital imagine)- Provide new user experiences integrating innovativehardware, software and services- Reach out to new customers and develop new geographicmarkets- Increase Sonys focus on environmentally conscious productsand processes.
  6. 6. 4. Four initiatives → GoalsThrough these measures, Sony targets an annual 5% operatingincome margin and a 10% return on equity by the end of thefiscal year ending March 31, 2013.
  7. 7. 5. Details of these initiatives are as follows・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 productsand processes
  8. 8. 6. Target consistent profitability in core hardwarebusinesses (TV, game and digital imaging) - (1)Regain the leading market position in LCD TV business• Target returning the LCD TV business to profitability in thefiscal year ending March 31, 2011 and achieving a 20%worldwide market share on a unit basis in the fiscal year endingMarch 31, 2013.• Create a new revenue model beyond conventional TVbusiness models.- Introduce “Evolving” TV that delivers new applications overthe network.- Develop new generation displays using proprietary Sonydevices.
  9. 9. 6. Target consistent profitability in core hardwarebusinesses (TV, game and digital imaging) - (2)Strengthen profitability of game business• Target returning to profitability in the fiscal year ending March31, 2011.• Increase revenues by expanding hardware/software sales andenrichment of PlayStation®Network services.• Improve profitability in the game business by cost reductionand other measures.
  10. 10. 6. Target consistent profitability in core hardware businesses (TV,game and digital imaging) - (3)Maintain leading position as the number one digital imagingbrand in the world• Strengthen business through outstanding productdifferentiation and cost competitiveness based on key devicessuch as image sensors and imaging engines.
  11. 11. 7. Provide new user experiences integratinginnovative hardware, software and services - (1)Network-connected products and services• Further expand Sony’s networked service business by utilizing therapidly growing PlayStation®Network services (over 33 millionregistered account users as of November 16, 2009) and by integratingattractive hardware, including new mobile products and otherconsumer electronics, with networked services. Target annualrevenues of 300 billion yen from networked service business by theend of the fiscal year ending March 31, 2013.• Strengthen and expand networked mobile business.- Strengthen collaboration with Sony Ericsson MobileCommunications.- Accelerate rollout of e-book (hardware and content) business.• Expand Sony’s lineup of network-connected products. Targetinstalled user base of 350 million units by the end of the fiscal year
  12. 12. 7. Provide new user experiences integratinginnovative hardware, software and services - (2)Expand 3D-related product businesses in the fiscal year ending March31, 2011• Engage Sony’s group-wide assets from content production to displaydevices and game to make available a wide variety of attractivecontent and hardware, and drive the creation of new 3D markets.• Launch 3D-related products for the home, including TV, Blu-rayDiscTM players/recorders and 3D gaming on PlayStation3 in the fiscalyear ending March 31, 2011.• Provide solutions for 3D content production, distribution andtheatrical projection to lead the field in broadcast and professionalbusinesses.• Target revenue from 3D-related products of more than 1 trillion yen
  13. 13. 8. Growth strategies for lithium-ion batterybusiness• Secure high profitability in existing businesses.• Analyze possible entry into new business domains (storage/e-Vehicle battery).
  14. 14. 9. Reach out to new customers developnew geographic markets• Strengthen direct marketing strategies.• Promote Sony Group’s unified brand message “make.believe”globally.• Continue to invest in emerging markets, including BRICcountries, to develop new customer bases.
  15. 15. 10. Increase Sony’s focus on environmentallyconscious products and processes• Target absolute 30% reduction in greenhouse gas emissionsfrom Sony Group sites in CO2 emissions by the end of thefiscal year ending March 31, 2016, compared to the level of thefiscal year ended March 31, 2001*.• Target 30% reduction of power consumption per product bythe end of the fiscal year ending March 31, 2016, compared tothe level of the fiscal year ended March 31, 2009*.• Target zero environmental footprint throughout the lifecycle ofSony’s products and business activities as long-term goal.
  16. 16. End.
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