Sony is Japanese multinational conglomerate corporation with the revenue of US$71.87 billion (FY11). Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Mobile Communications, and Sony Financial, which are engaged in business through 4 segment: Electronics, Motion picture, Music and Financial services. This conglomerate corporation is known with slogan: “Sony. Like no other”. Growth from a company with initial capital of US$2000 in Nagoya,Japan in 1946, becomes one of Worldwide Top 20 Semiconductor Sales Leaders, third-largest television manufacturer in the world, after Samsung Electronics, LG Electronics, third-largest mobile manufacturer in the world after Samsung Mobile and Apple, but Sony now is in the hard time and in process of recovery. Before the current reorganization, Sony have implemented quite many of reorganization but they seem didn’t work, in the first months of 2012, Sony have been face with foundering TV business and the massive tax charge, that make them lost US$6.4 billion. Come up with the newly strategy “One Sony” in April 2012, new CEO Kazuo Hirai aims to revitalize and grow the electronics business to create new value, strengthen the core business which are: 1.
Strengthen core business: Digital imaging, Gaming, Mobile. 2.
Turning around the TV business
Expandiing business in emerging markets
Creating new business, accelerating innovation
Realigning the business portfolio and optimizing recources
The new CEO have plan to reorganize the corporate, sell some business, reduce by 10,000 job to have fund for the return of Sony and no information for Sony Financial change. Sony target US$67.42 billion revenue and operating income margin of 5% in its electronics business and sale of US$ 95.51 billion, operating income margin of more than5%, and ROE of 10% for the Sony group overall (FY14). I.
With the globalization, the world now is more “flat”, allow to customer from more and more countries can access to foreign products, also it enhanced the production, created more value for human on the world, so the demand of product is expanding rapidly, Sony ‘s products are one of the highest expanding demand products. Although the world economy continues to struggling with post-crisis started from US in 2008 and the global economic growth have weakened further, the world still witness the success in business of big electronics and mobile company such as Apple, Samsung 2.2
Social and demographic:
According to UNICEF, the world’s population is 7 billion as the end of 2012 and expected to increase in next 5 years. This means that the demand of all the products will increase along.
There are more than 67% of American household play video games, 40% were women and they almost under 25 year old. This show that this form of entertainment is mainstream now in US. The trends are similar in Europe and Japan. The other country market show the optimistic with the rapidly increasing of gamer. The demand of the other electronic entertainment and mobile is clearly growth in the past decade.
Coming along with the rapid growth of the Internet is the new services on it such as internet storage (Mediafire, Dropbox, Box.net,….), internet integrate with TV (which is now one of Sony ‘s TV line), internet calls, internet service on mobile,…creating wider market and more direction to expand business for Sony.
But also there are difficulties for Sony, the margin for technology advancement is now diminishing, which is unfavorable for the pioneer of technology such as Sony.
As one of the biggest company and contributed significantly for the growth of Japanese...
Please join StudyMode to read the full document