How must SONY change its business strategies for 2010 and beyond?
How must SONY changeits business strategies for 2010 and beyond? Business Writing: Week 10 s1180035 Shota Furuya
Contents What is SONY? Brief History of SONY Efforts in SONY Strategies for revival of SONY Future plans of SONY Targets of SONY Conclusion References
What is SONY? Sony Corporation is one of the most largest electronic manufacturer on the world. Sony Corporation has many diversified businesses: Electronics Games Entertainment Field Financial Services etc.
Brief History of SONY 1964 : Masaru Ibuka started a shop for electronics in Tokyo. 1965 : Akio Morita joined the shop and founded a company called Tokyo Tsushin Kogyo. This company built the first tape recorder (called Type-G) in Japan. 1958 : Tokyo Tsushin Kogyo renamed their name to Sony. 1970 : Sony is listed in New York Stock Exchange.
Efforts in SONY In 1994, Sony made an effort to restructure their company and improve their financial performance and competitiveness, however, this didn’t be done successfully. In 2005, Howard Stringer became the CEO of Sony and he made encouraging result in their financial growth in 2008. However, in late 2008, Sony announced loss of 98.9 billion yen. Stinger says Sony must reorganize their company.
Strategies for revival of SONY Sony decided they reduce their costs and reorganize their structure of the whole company. Sony decided to optimize their business processes and accelerate innovation of their company. By these efforts, in 2010. Sony could successfully re- increase their productions and they achieved the group- wide cost reductions.
Future plans of SONY In order to continue to enhance their businesses, they set up additional measures. Moreover, they decided to develop to new customers and new markets. They decided to achieve these measure by 2013. They also decided that targets is : an annual 5% operating income margin and a 10% return on equity.
Targets of SONY Their main target is core hardware businesses. TV, Game, digital imaging, etc. They decide to provide new user experiences to all customers by new innovative hardware, software, and services. They decided to increase Sony’s focus on environmentally conscious products.
Conclusion Sony is one of the most largest company for electronic products. They experienced failure in their company in late 1990’s, but they recovered. In 2008, they are in crisis again, but in 2010, they are recovered. By 2013, they decided increase their businesses. Now, they are targeting in hardware productions mainly.
References Sony Gets Real, Defines Business Strategy For 2010 And Beyond (Sony Insider) http://www.sonyinsider.com/2009/11/19/sony-gets- real-defines-business-strategy-for-2010-and-beyond/ Sony Corporation – Restructuring Continues, Problems Remain (ICMR) http://www.icmrindia.org/casestudies/catalogue/Busin ess%20Strategy/BSTR361.htm Sony (Wikipedia) http://en.wikipedia.org/wiki/Sony