Sony’s opportunities include the following:
• Reorganisation efforts to boost savings
• Focus on BRIC economies helps long term growth
• Partnership with FIFA to enhance corporate value
Reorganisation efforts to boost savings
‘Sony undertook major reconstructing initiative in February 2009, reorganising its operations into two groups, one based around networked media products (games, computers, music-players, new mobile products and related services), and the other around televisions, cameras and components. The reconstructing means that software development and acquirement will be wrestled from individual product groups and centralised. Sony Financial Holding Inc., Sony Music Entertainment, Sony Pictures Entertainment and Sony Ericsson Mobile Communications Ltd., the group’s handset venture with Ericsson AB, will stay as separate entities.
Further, as part of the reform, Sony will cut around 16,000 employees and close up to six of its 57 factories around the world. Sony expects all this to save around $3 billion in cost in fiscal year 2010. Reorganisation efforts like this are likely to have a positive impact on the group’s businesses in the future.’
Focus on BRIC economies helps long term growth
‘Sony’s largest regional growth economic opportunity exists in emerging markets, led by the BRIC countries-Brazil, Russia, India and China. These four nations are some of the world’s fastest-growing economies and represent over 40% of its population. It has already achieved considerable success in India, with the strong presence of its film, television and music content complementing its electronics business. The group plans to replicate this model in the other BRIC countries and other emerging markets. Sony plans to double its revenues from the BRIC countries over the next three years. It achieved JPY1,000 billion in revenues from the BRIC countries (including Sony Ericsson and Sony BMG Music Entertainment) in FY2007, and it...