Sony must change its business strategies for 2010 and beyond by focusing on four key initiatives: 1) achieving consistent profitability in core hardware businesses like LCD TVs, 2) creating new user experiences through innovative hardware, software, and services, 3) expanding into new markets and customer bases in emerging regions like BRIC countries, and 4) increasing its focus on environmentally friendly products and achieving a zero environmental footprint as a long-term goal. Sony has already made progress through restructuring and cost reductions, positioning it to launch competitive new products and become a quicker, leaner organization responsive to the market.
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1. How must SONY change its business
strategies for 2010 and beyond?
s1170187 Daichi Kikuta
2. History of sony
● In late 1945, Masaru Ibuka started a
radio repair shop.
● In the early 1950s, Ibuka traveled in
the United States.
● In August 1955, Tokyo Tsushin Kogyo
released the Sony TR-55, Japan's first
commercially produced transistor radio.
3. History of sony
● In May 1956, the company released the
TR-6.
● In 1957, Tokyo Tsushin Kogyo came out
with the TR-63 model.
→It was a worldwide commercial success.
● Sony's headquarters moved to Minato,
Tokyo from Shinagawa, Tokyo around the
end of 2006.
4. About sony
● Under the leadership of its new
executive management team established in
April of this year, Sony has reformed
its organizational structure in order to
bolster profitability and transform its
operations, with the aim of accelerating
innovation and growth and optimizing
business processes, particularly within
its electronics and networked service
businesses.
5. As a result
● approximately 80% of Sony’s targeted
330 billion yen (3.7 billion USD) of
group-wide cost reductions for the
current fiscal year ending March 31,
2010 compared to the previous fiscal
year have been achieved in the first
half of the current fiscal year.
6. Furthermore
● Sony is now positioned to launch a
succession of competitive products from
the end of this calendar year and into
2010.
● This also means that Sony is becoming a
quicker, leaner organization which is
more responsive to the market.
7. centering on the following
four initiatives
● Target consistent profitability in core
hardware businesses.
● New user experiences integrating
innovative hardware, software and
services.
● Reach out to new customers and develop
new geographic markets.
● Increase sony focus on environmentally
conscious products and processes.
8. As a result
● Target returning the LCD TV business to
profitability in the fiscal year ending
March 31, 2011 and achieving a 20%
worldwide market share on a unit basis
in the fiscal year ending March.
● Target annual revenues of 300 billion
yen from networked service business by
the end of the fiscal year ending March
31, 2013.
9. As a result
● Continue to invest in emerging markets,
including BRIC countries, to develop new
customer bases.
● Target zero environmental footprint
throughout the lifecycle of Sony’s
products and business activities as
long-term goal.