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How must sony change its business strategies for 2010 and beyond


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How must sony change its business strategies for 2010 and beyond

  1. 1. How must SONY change its businessstrategies for 2010 and beyond?s1180036 Taisuke Honda
  2. 2. Outline● Introduction● History● Sonys business strategy● Strengths & Weaknesses● Result● Future● Summary● References
  3. 3. Introduction● Sony has been very successful over severaldecades.● Sony is an international corporation with majorbusinesses in electronics, movies, videogames, and finance.● Sony has used its innovation to create a hugemultinational company.
  4. 4. History● In 1946, Tokyo Tsushin Kogyo was founded.The company developed first tape recorder inJapan, called the Type-G.Sony.● In 1958, the company name was changed toSony.● After that, Sony created innovation with thefollowing products. That is transistor radio, theTrinitron, the VTR and many more.● Sony has changed our everyday lives.
  5. 5. Sonys business strategy● Sonys business strategy is to be the leadingglobal provider of networked consumerelectronics and entertainment in the world.● Sony has reformed the structure oforganization.● It is intended to accelerate innovation andoptimize business processes.● Sony target on high profitability in corehardware business which is TV, games anddigital imaging.
  6. 6. Strengths & Weaknesses● The ability to produce innovative qualityproducts is Sonys strength. Its starting with thefirst magnetic tape and tape recorder in 1950.● Products are expensive. Sonys products are 20to 30 percent higher than comparable goods.Inefficient supply chain. Sonys business hasheavy operating costs leading to inefficientsupply chain. These are weaknesses of Sony.
  7. 7. Result● Although 2009 Sonys annual accounting was110 billion yen loss, group-wide large costreduction was achieved in the 2010 fiscal year.● As the result, about 80% of Sonys targeted 330billion yen of cost reduction in 2010 fiscal yearhave been achieved in the first half of 2010fiscal year. Sony expects 160 billion yen profitsin 2010 fiscal year.
  8. 8. Future● They will centering on the following fourinitiatives.~ Profitability in core hardware businesses( TV, game and digital imaging )~ Provide new user experience~ Reach out to new customers and develop newgeographic markets~ Increase environmentally conscious products
  9. 9. Summary● Sony will revive.● For that purpose, large cost reduction isrequired.● Furthermore, Sony can achieve an aim by thefocus strategy on four initiatives.● Sony targets on an annual 5% operatingincome margin and a 10% return on equity bythe end of 2013.
  10. 10. References● Sony Gets Real, Defines Business Strategy For2010 And Beyond● The China Post● Wiki● ICMR