Sony outlined four initiatives to drive continued growth and profitability through 2013. These included focusing on hardware businesses like TVs and gaming for consistent profits, providing innovative integrated products and services, expanding into new markets, and developing environmentally friendly products and processes. Sony aims to increase operating income margin to 5% and return on equity to 10% through these initiatives. It will strengthen areas like the PlayStation Network, develop new displays and 3D products, and continue investing in emerging markets.

1. How must SONY change
its business strategies
for 2010 and beyond?
s1170178 Yuya Ito

2. Recent SONY
● 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.

3. Four Initiatives
● 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
customers.
– SONY focuses on environmentally conscious products and
processes.
● 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.

4. Businesses
● In TV business, SONY develops “Evolving”TV
that delivers new applications via the network
and new generation displays using proprietary
SONY devices.
● 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
imaging engines.

5. Businesses
● 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
business.
● 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.

6. How to Get Customers
● SONY strengthens direct marketing
strategies.
● Sony Group's unified brand message is
“make.believe” globally.
● SONY continues to invest in developing
markets, including BRICs countries for
getting new customer.

7. Environmental Problem
● SONY reduces absolute 30% of greenhouse
gas emissions from SONY Group sites in
CO2 emissions..
● SONY reduces 30% of power consumption
per product.
● SONY targets zero environmental
footprint throughout the life-cycle of
SONY's products and business activities
as long-term goal.

8. 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.

9. Conclusion
● SONY is a time of change in recent
years.
● SONY has various useful technologies,
faces the future and develops a
strategy.
● SONY has four initiatives for improving
business results.
● SONY has some problems, but SONY may
break down these problems so SONY is
honored company.

10. References
● SONY, Letter to Shareholders: A Message from Howard
Stringer, CEO,
http://www.sony.net/SonyInfo/IR/info/strategy/messag
e.html
● SonyInsider, Sony Gets Real, Defines Business
Strategy For 2010 And Beyond,
http://www.sonyinsider.com/2009/11/19/sony-gets-
real-defines-business-strategy-for-2010-and-beyond/
● Easy-Strategy.com, What Should Sony Strategy Be
Next?, http://www.easy-strategy.com/sony-
strategy.html
● Wikipedia, Sony, http://en.wikipedia.org/wiki/Sony