How must SONY change
its business strategies
for 2010 and beyond?
s1170178 Yuya Ito
● 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.
● 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
– SONY focuses on environmentally conscious products and
● 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.
● In TV business, SONY develops “Evolving”TV
that delivers new applications via the network
and new generation displays using proprietary
● 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
● 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
● 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.
How to Get Customers
● SONY strengthens direct marketing
● Sony Group's unified brand message is
● SONY continues to invest in developing
markets, including BRICs countries for
getting new customer.
● SONY reduces absolute 30% of greenhouse
gas emissions from SONY Group sites in
● SONY reduces 30% of power consumption
● SONY targets zero environmental
footprint throughout the life-cycle of
SONY's products and business activities
as long-term goal.
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.
● SONY is a time of change in recent
● SONY has various useful technologies,
faces the future and develops a
● SONY has four initiatives for improving
● SONY has some problems, but SONY may
break down these problems so SONY is
● SONY, Letter to Shareholders: A Message from Howard
● SonyInsider, Sony Gets Real, Defines Business
Strategy For 2010 And Beyond,
● Easy-Strategy.com, What Should Sony Strategy Be
● Wikipedia, Sony, http://en.wikipedia.org/wiki/Sony