Sony Corporation Inc. and Its Financial Analysis

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In the last ten years, one of the things that has been changing the way the World works is technology. From the invention of new hybrid vehicles to small things like 3D cell phones and TVs, many companies have been competing in a huge market to release the best product with the best features for customer satisfaction. Among these organizations we can find “LG”, “General Electric”, “Samsung”, and “Sony”; the last one is one of the biggest manufacturer of electronic equipment in the world and a good competitor for other firms. It was founded on 1946 on a partnership alliance (Masaru Ibuka and Akio Morita) with its headquarters in Japan. At the beginning the company was called “Tokyo Telecommunication Engineering Corporation” but changed its name years later to “Sony”. “The name of Sony comes from the combination of two Latin words: Sonnus which means sound and Sonny which denotes a small size”. They started the business with a low capital and with no more than “twenty employees” but soon after they began to grow at an unstoppable rate because of all the people that started to demand technology. The first device “Sony” released was the “recording tape”. This one was the first device of this kind released in the World, which came along with the “magnetic tape recording” one year later. After the successful achievement that they had in America when they released the tape, they started its “American branch under the name of SONAM (Sony Corporation of America)”. Then they took advantage again over other firms releasing the first TV screen called “TV8-301”. Sony was the top producer of electronic devices between 1950 and 1970, what called the attention of many other similar companies which were looking for an alliance with Sony to make profits. By the time Sony was operating in America and part of Asia with two important devices released to the World, both owners decided to expand their business to the United Kingdom under the name of “Sony (U.K) Ltd.” During this period, while the company was getting used to a new culture, two more important stages on the history of technology were achieved by Sony. One of them was the developed of the “first color TV in 1968” which broke with all the expectation of the customers. This is the reason why in 1973 CBS Records and Sony began a “joint venture” or alliance that changed its name many times until Sony, which was the biggest and most powerful company, “became the whole owner of the venture setting the firm with the name of Sony Music Entertainment Inc.”. The second one had to deal with the release of the first CD player on 1982 which replaced the old tape recorder and took the World into a new era of CD audio players. Because the demand of technology and more especially of computers in the following years after Sony created all these devices, the company itself introduced a new market department called “Sony Computer Entertainment Inc.”. This one was on charged of creating new software and hardware to be used in computers. Nowadays “Sony Corporation Inc.” manufactures not only color TV screen, CD players and hardware, but it also possesses a broad market line that includes, computers, MP3 players, and video cameras. It also has stores and manufacturers located in each of the five continents in “more than 183 countries” including the U.S, German, U.K, France and China which are other important headquarters. It started with a few number of employees and a small amount of capital, but it situated in the “number 3 of the world ranking of electronic equipment industries” with sales around the $84 billion. Even though these numbers changed a lot when the Earthquake and then Tsunami stroke in Japan, the firm still continues its progresses to higher its return on equity, liquidity, and operating profitability. Nobody is prepared for an unexpected natural disaster that can turn not only the affected country into a low trading area but also the World as a whole. One month ago Japan suffered...
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