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SONY

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  • 1. How must SONY change its business strategies for 2010 and beyond? s1170178 Yuya Ito
  • 2. Recent SONY ● SONY changed executive management team in order to bolster profitability and transform SONY's operations in April of 2009. ● Big target of SONY's cost reductions had proceeded at a good rate. ● SONY was positioned to launch a succession of competitive products from the end of 2009 and into 2010. ● SONY doesn't develop products based on underlying technologies, but develop products based on the user experience.
  • 3. Four Initiatives ● These initiatives are in order to permit further growth and continue to enhance profitability. – SONY's targets are hardware businesses for consistent profitability like TV, game and digital imaging. – SONY provides new user experiences integrating innovative hardware, software, and services. – SONY develops new geographic markets for getting new customers. – SONY focuses on environmentally conscious products and processes. ● SONY targets an annual 5% operating income margin and a 10% return on equity through four initiatives by the end of the fiscal year ending March 31, 2013.
  • 4. Businesses ● In TV business, SONY develops “Evolving”TV that delivers new applications via the network and new generation displays using proprietary SONY devices. ● In game business, SONY increases profitability of game by enrichment of PlayStation®Network services, cost reduction and so on. ● In digital imaging business, SONY differentiates products and reduces cost based on key devices such as image sensors and imaging engines.
  • 5. Businesses ● In Network-connected business, SONY utilizes the rapidly growing PlayStation®Network services users and integrates attractive hardware. Also, SONY strengthens and expand networked mobile business and accelerate rollout of e-book hardware and content business. ● In 3D-related product business, SONY drives the creation of new 3D markets using SONY's group-wide assets such as display devices and game. Also, SONY launches 3D-related products and provides solution for 3D content production. ● In lithium-ion battery business, SONY analyzes possible entry into new business domains.
  • 6. How to Get Customers ● SONY strengthens direct marketing strategies. ● Sony Group's unified brand message is “make.believe” globally. ● SONY continues to invest in developing markets, including BRICs countries for getting new customer.
  • 7. Environmental Problem ● SONY reduces absolute 30% of greenhouse gas emissions from SONY Group sites in CO2 emissions.. ● SONY reduces 30% of power consumption per product. ● SONY targets zero environmental footprint throughout the life-cycle of SONY's products and business activities as long-term goal.
  • 8. Current Market Problem ● SONY has many, many competitors in all SONY's business. e.g. In game business, Microsoft and Nintendo are powerful competitors for SONY. ● SONY has network security problem and network security increases risk becoming bigger and bigger network. ● To streamline SONY's organization is not always a good thing.
  • 9. Conclusion ● SONY is a time of change in recent years. ● SONY has various useful technologies, faces the future and develops a strategy. ● SONY has four initiatives for improving business results. ● SONY has some problems, but SONY may break down these problems so SONY is honored company.
  • 10. References ● SONY, Letter to Shareholders: A Message from Howard Stringer, CEO, http://www.sony.net/SonyInfo/IR/info/strategy/messag e.html ● SonyInsider, Sony Gets Real, Defines Business Strategy For 2010 And Beyond, http://www.sonyinsider.com/2009/11/19/sony-gets- real-defines-business-strategy-for-2010-and-beyond/ ● Easy-Strategy.com, What Should Sony Strategy Be Next?, http://www.easy-strategy.com/sony- strategy.html ● Wikipedia, Sony, http://en.wikipedia.org/wiki/Sony