How must SONY change itsbusiness strategies for2010 and beyond?Week10s1160041 Hiroaki Ohtake
Outline1. Introduction2. Sonys History3. Current State4. Strategy5. Conclusion6. References
IntroductionSony Corporation, commonly referred to asSony, is a Japanese multinationalconglomerate corporation. Sony is famous andpopular all over the world. Sony has achievedgreat success in the electronics product.However, by the rise of companies such asSamsung Electronics and major changes in themarket, Sony has been forced to big policychange in recent years.In this presentation, I will continue to discussthe Sonys strategy and change its bussiness.
Sonys History1946: Start as electoronics shop in Tokyo1950: Japans first tape recoeder1955: Japans first transister radio1968: Trinitron color television1979: Walkman1982: Compact Disc1985: 8mm video player and camera2003: Blu-ray Disc
Current StateThe financial condition of Sony is not bad, butin recent years, Sonys regular business ofelectronics apparatus are not good.It is in the state where associated companies,such as music and a bank, have filled up thedeficit in a main occupation.In order to regain the electronics of Sony,required that will continue to develop productsare more competitive.
Strategy● Target consistent profitability in corehardware businesses (TV, game and digitalimaging)● Provide new user experiences integratinginnovative hardware, software and services● Reach out to new customers and developnew geographic markets● Increase Sony’s focus on environmentallyconscious products and processes
Target consistent profitability in corehardware businesses● Target returning the LCD TV business toprofitability in the fiscal year ending March31, 2011 and achieving a 20% worldwidemarket share on a unit basis in the fiscalyear ending March 31, 2013.● Create a new revenue model beyondconventional TV business models.● Increase revenues by expandinghardware/software sales and enrichment ofPlayStation®Network services.
Provide new user experiences● Strengthen and expand networked mobilebusiness● Expand Sony’s lineup of network-connectedproducts● Expand 3D-related product businesses inthe fiscal year ending March 31, 2011● Growth strategies for lithium-ion batterybusiness
Reach out to new customers anddevelop new geographic markets● Strengthen direct marketing strategies● Promote Sony Group’s unified brandmessage “make.believe” globally● Continue to invest in emerging markets,including BRIC countries, to develop newcustomer bases
Increase Sony’s focus on environmentallyconscious products and processes● Target absolute 30% reduction ingreenhouse gas emissions from Sony Groupsites in CO2 emissions by the end of thefiscal year ending March 31, 2016,compared to the level of the fiscal yearended March 31, 2001*● Target zero environmental footprintthroughout the lifecycle of Sony’s productsand business activities as long-term goal
ConclusionSony seems to intend to continue working torebuild the electronics business.To regain pride as Electronics of Sony, it willcontinue to run a variety of strategies in thefuture.
ReferenceSony(wikipedia)http://en.wikipedia.org/wiki/SonySony Corp. (SNE) | Profitability Analysishttp://www.stock-analysis-on.net/NYSE/Company/Sony-Corp/Ratios/ProfitabilityHow must SONY change its business strategies for 2010and beyond?http://www.sonyinsider.com/2009/11/19/sony-gets-real-defines-business-strategy-for-2010-and-beyond/