How must SONY change itsbusiness strategies for 2010 and beyond? s1170199 Hiroki Seino
The aim of business strategies Business strategies of SONY established under the leadership of its new executive management team in April of this year. Its aim is to accelerate innovation and growth and to optimize business processes. Approximately 80% of its targeted 330 billion yen of group-wide cost reductions for the current fiscal year ending March 31.
Four initiatives To target consistent profitability in core hardware businesses. To provide new user experiences integrating innovative hardware, software and services. To reach out to new customers and develop new geographic markets. To Increase its focus on environmentally conscious products and processes.
Horizon from the measures It targets an annual 5% operating income margin and a 10% return on equity by the end of the fiscal year ending March 31, 2013. Sony is already becoming a quicker, leaner organization that is more responsive to the market.
Growth strategies To regain the leading market position in LCD TV business and strengthen profitability of game business. To maintain leading position as the number one digital imaging brand in the world. To provide new user experiences integrating innovative hardware, software and services.
Things learned from “Apple” SONYs focus is shifting toward products that support its media platforms that are just what Apple does. SONY seems to be learning from Apples success and building off of it in a way slightly it. In full startup mode as public companies chart their own courses and provide hope that there will be life after Apple.
Strategy Update in 2008 It continues PS3 cost reduction initiatives in the Game segment. It expands content and services available on the network platform. It continue to expand the PS3 customer base through the strength of Blue-ray Disc. It accelerate PS3 sales through upcoming key franchise software titles.
To be a leading company To leverage its unique advantage of producing both hardware and content. To continue to offer cutting-edge products together with superior content and services to meet the needs and expectations of their customers.
Conclusion The aim of business strategies is to accelerate innovation and growth and to optimize business processes. It targets an annual 5% operating income margin and a 10% return on equity by 2013. It tries to be a leading company from now on.