1. Introduction about SONY● Japanese corporation headquartered in Tokyo,Japan● Main business: Electronic, game, entertainment, Financial services sector.● History: ○ Beginning in 1946 as an electronic shop by Masaru Ibuka ○ In 1958, accompanied with Akio Morita and changed the company name to Sony● Format and technology ○ In 1980, Betamax system: in-house standard for recording and storing ○ In 1979, launched walkman, the worlds first portable music player ○ In 1993, launched a new audio compression named ATRAC against to MP3 ○ Today, the leading developer of the Blu Ray Disc optical disc format
Business Units● Electronic: ○ Audio: Walkman ○ Computer: VAIO branch ○ Photography: The worlds third largest camera manufacturer with Alpha line. ○ Video: ■ Until 2005: LCD VEGA branch for LCD TV ■ Later: BRAVIA in house branch● Sony Mobile Communications: ○ Xperia smartphone branch● Sony Computer Entertainment: ○ Play Station branch
Finances● One of Japans largest corporation by revenue.● 1990-2000s: immensely profitable with PlayStation line● Early 2000s:The effect of global financial crisis, Japan earthquake -> financial difficulty.● In 2011, reducing revenue while Net worth is increasing condition.● 2012, reducing workforce by 10000● loss $6.36 billion in fiscal 2012
2. Business condition● The change of the companys next chief executive● faced with fourth consecutive annual loss● stock priced has dropped by more than 50% from 2005● losing out to its key rivals: SamSung in LCD TV sector, Apple in Mobile sector and Nikon, Canon on digital camera● sold its take to joint LCD panel manufacturing for Samsung● Buying handset partner Ericsson● The failure of the launched tablet: Tablet X and Table P.
3. Business strategy● Reformed its organizational structure.● Aim: ○ Accelerating innovation ○ Growth and optimizing business process● Centering on four initiatives: ○ Target consistent profitability in core hardware business ○ Provide new user experience ○ Reach out to new customers and develop new geographic market ○ Increase Sonys focus on environmentally conscious products and process
3.1 Target consistent profitability in core hardwarebusiness● Regain the leading position in LCD TV business.● Strengthen profitability of game businesses.● Maintain leading position as the number on digital camera.
3.2 Provide new user experience● Further expand Sonys networked service business● Strengthen and expand networked Mobile business● Expand Sonys lineup of network-connected products
3.3 Reach out to newcustomer● Strengthen direct marketing strategies● Promote Sony Groups unified brand message● Continue to invest in emerging markets.