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Sony Ericsson Company

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  • December 2010
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Company background

• Sony is one of the world's most widely known electronics companies. Founded in Japan, the company has grown from humble roots to a multinational giant. From the tape player to the Walkman to OLED TV, Sony's tradition of innovation has made it a profitable company for more than 60 years. As of July 2009, Howard Stringer was the company's chairman, CEO and president

• When Sony looked to go global with its products in the mid-1950s, it looked for a new name because the initials TTK were already taken. The company came up with its name by combining the Latin word for sound, "sonus," and the American word "sonny." The company wanted a word that was not found in any language for trademarking reasons. Many within the company questioned the change because of the time spent on making its original name known in the business world, but in 1958, the name was officially changed to Sony Corp. In 1960, Sony launched its U.S. branch. Eight years later, Sony opened a branch in the United Kingdom. The company continued to grow in the 1970s, when it expanded into Spain and France in 1973. German operations were started in 1986.

Swot analysis
WEAKNESSES AND THREAT
Referring to Exhibit 1, sales has slowed down considerably since the beginning of the 80s. In the domestic market, sales actually decreased by 7.22%. The overseas market expanded both in real terms and relative to total sales, but slowed down to around 10% a year. This can be seen as the vacuum period between one hit product, the Walkman, and its succession. As mentioned by Ibuka, business is conducted in a ten year cycle. However, in the eighties, the product might still take a few years to develop, but the time reaping the results and profits might be much less. As seen in the VTR example, both the VHS and Beta were developed by Sony. However, in a short time, Matsushita could come up with a competitive product based on Sony's technology. Therefore, it is fair to say that other...

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