Transcript
7/29/2019 Sony market analysis
1/29
1
Sony Corporation2nd August 2010
7/29/2019 Sony market analysis
2/29
2
Objective and Agenda
Agenda
Company Overview
Company Profile
Consolidated Financials
Online Marketing Spend
Marketing Spend Breakup by Channel
Company Strategy
Board Members
Management
Business Segments
Competitive Landscape
Objective To provide background information on Sony Corporation
7/29/2019 Sony market analysis
3/29
3
Executive Summary
Sony Corp
Develops, designs, manufactures and sells various kinds of electronic equipment, instruments, anddevices for consumer and industrial markets
Repositioned operations previously reported within the Electronics and Game segments and
establishing the Consumer Products & Devices, Networked Products & Services and B2B & DiscManufacturing segments
Revenues fell in FY2009, however Net Operating Margins are expected to increase in future due toLCD TV and cellular phone turning profitable and boost from restructuring charges along with adecrease in network-related costs
Operating income of 31.8 billion was achieved, compared to an operating loss in the previous fiscalyear
Planning a major focus on BRIC countries to fuel its growth plans
Segments
Consumer Products and Devices
Biggest segment accounting for over 40% of the total revenues
Segment as a whole was affected by unfavorable currency exchange rates, sales decreased forBRAVIA LCD televisions and cameras
Networked Products & Services
2nd biggest segment accounting for over 20% of the total revenues
Operating income in the game business deteriorated despite cost reductions for PS3 hardware and
higher unit sales of PS3 software, reflecting lower unit sales of PS2 software and PSP hardwareB2B & Disc Manufacturing
Includes Sonys B2B businesses, including broadcast- and professional-use products, and the discmanufacturing business, including Blu-ray Disc, DVD and CD
Decline in segment sales was largely to unfavorable foreign currency exchange rates, as well asdecreased sales of broadcast- and professional-use products
Picture- Generated 9.8% of Sonys 2009 revenue
Music - Generated 7.1% of Sonys 2009 revenue
Financial ServicesGenerated 11.6% of Sonys 2009 revenue
7/29/2019 Sony market analysis
4/29
4
Company Overview
7/29/2019 Sony market analysis
5/29
5
Sony | Company Overview
Sony Corporation (Sony) is a Japan based electronicsproducts manufacturing company
Develops, designs, manufactures and sell various kinds ofelectronic equipment, instruments, and devices for consumerand industrial markets
Business Segments
Organized around seven business segments:
Consumer Product and Devices, network product and
services, B2B & Disc Manufacturing, Pictures, Music,Financial Services and Others
Has three horizontal platformsthe Global Sales andMarketing Platform, the Manufacturing, Logistics,Procurement and CS (Customer Service) Platform, and theR&D and Common Software Platform
Operations
The company, along with its subsidiaries, has major operations inJapan, and across many countries in North America, Europe and
Asia.
Sony has its wide service foot-print in about 200 counties,worldwide
Products are marketed throughout the world by sales subsidiariesand unaffiliated distributors, as well as direct sales through the
Internet
Key Statistics
Ownership : Public NYSE, (Ticker: SNE)
Headquarters : Tokyo, Japan
Founded : May 7, 1946
Employees : 167,900
Chairman, CEO and President : Howard Stringer
Financial Year End : 31st March
Revenues, Global (FY2009) : 7,214 bn ($77.82 bn)
Revenues, US (FY2009) : 1,731.6 bn ( $470.5 mn)
63,734
70,537
88,928
79,457 77,825
2005 2006 2007 2008 2009
Revenue History
All figures in $ bn
Source:Annual Report 2009, http://tokyo.usembassy.gov/e/acs/tacs-7126b.html
7/29/2019 Sony market analysis
6/29
6
Sony | Consolidated Financials
Figures in bn FY08 (A) FY09 (A) FY10 (E) FY11 (E) FY12 (E)
Operating Revenue 7,729.9 7,214.0 7,635.7 7,485.0 7,392.9
Operating Profit -227.8 31.8 90.0 255.0 300.0
Revenue Growth-6.6% -6.7% 5.8% -2% -1.2%
Net Operating Margin -2.9% 0.4% 1.2% 3.4% 4.1%
Stock market
9%Change
$40.4552 Week High
$ 24.5252 Week Low
$ 28.62Price, 3 August 2009
$31.22Price, 30July 2010
Share Price Graph: August 2009 August 2010
Recalled 535,000 Vaio laptops due to atemperature control defect that maycause excessive heat and distort itsshape
Source:Annual Report 2009, googlefinance.com
Operating income of 31.8 billion was achieved, compared to an operating loss in the previous fiscal year.
The Financial Services segment and the Consumer Products & Devices segmentin particular, LCD televisionscontributed to the improvement in operating results year-on-year.
Net Operating Margin are expected to increase in future due to LCD TV and cellular phone turning profitable and boostfrom restructuring charges along with a decrease in network-related costs
Launched "Earth F.C.* to Support
Worldwide "Public Viewing in Africa"Project During 2010 FIFA World Cup "Earth F.C." (www.sony.net/earthfc),
aims to draw attention to the
challenges Africa is facing and tocommunicate the need for support fromaround the world
7/29/2019 Sony market analysis
7/297
Sony | Online Marketing Spend
Source: Nielsen, Annual Report, Google
Site/Sub-SiteEstimated Spending
($ mn)
MySpace (All) 18.87
New York Times (General) 4.62
YouTube (All) 2.72
Yahoo! Homepage 2.24
MSN Windows Live Hotmail 1.75
Yahoo! (General) 1.25
Amazon (All) 1.20
Nick.com (All) 0. 88
New York Times Business 0.808
MSN Movies 0.803
Others 18.34
Total 53.509
Impressions and Estimated Spending by Site/Sub-Siteduring 2009Online Marketing Spend (US)
During 2009, Sony spent approx. $53.5 mn on online media channels
in the US
Top 10 sites accounted for nearly 66% of the total online spending by
the company
Spending was highest on MySpace with over $ 18 million
Advertising spend on Consumer goods and entertainment industries
accounted for 54% of estimated spending by Sony in 2009
Estimated Spending by Industry :June 2009 June 2010
20%
9%
8%6%6%
10%
7%
34%
Consumer Goods Entertainment
Automotive Business to Business
Web Media Public Services
Financial Services Health
7/29/2019 Sony market analysis
8/298
Sony | Marketing Spend Breakup by Channel
Sonys Estimated Spending by Media : 2009
9%7%1%
76%
1%
2% 4%
T V N ewspaper Internet
M agazine Outdo o r R adio
B 2B
Total Media spent (USA) in 2009 was $748.8 million
TV accounted for more than 75% of Sonys marketing budget
Media spend on magazine was almost entirely on the National magazine segment
Online spend was at the third position Media spend on B2B and Radio was negligible
Source: Nielsen, Annual Report, Google
Sonys Spending Breakup for TV: 2009
Sonys Spending Breakup for Newspaper: 2009
20%2%
78%
Local Newspaper
National Newspaper
Nat ional Sunday Supplement
Sonys Spending Breakup for Radio:
2009
33%
67%
Spot Radio Network Radio
3 6 %
16%
0 %
4 3 %
2 % 3 %
Network TV
Cable TV
Spot TV
Spanish Language Network TV
Syndicated TV
S ani sh Lan ua e C ab le T V
7/29/2019 Sony market analysis
9/299
To continue to transform the company to achieve targets of a 5% operating profit margin and a 10%return on equity (ROE) by the year ending March 31, 2013).
To generate growth with consistent profitability in its core hardware businesses particularly digitalimaging, television and game businesses
To aggressively develop new business including network services
To expand by reaching out to new customers in new geographies
Greater investment in BRIC and emerging economies
Sony | Company Focus
Future Priorities
Source:Annual Report, Google
Realigned its reportable segments from the first quarter of the fiscal year ended March 31, 2010 toreflect the Companys reorganization
Repositioned operations previously reported within the Electronics and Game segments and establishing theConsumer Products & Devices, Networked Products & Services and B2B & Disc Manufacturing segments
Streamlining of Operations
7/29/2019 Sony market analysis
10/2910
Sony | Strategy & Growth Areas
Continued development of innovative, networked mobile products
Developed and launched Qriocity, a new online service platform based upon PSN
Launched its first Full HD 3D-integrated TVs and Blu-ray Disc players in June 2010
Expansion of entry-segment products with increased cost competitiveness into growingmarkets
To provide customers with the environmentally conscious products
To use its technological expertise to help solve environmental challenges
Announced a new set of Green Targets, where it will strive to lower every products power
consumption by 30 % versus 2008 levels, with a long-term goal of achieving a Zero
Environmental Footprint
Bringing TV and gaming business to profitability along with growing market position
Has an innovative new product lineup and an aggressive sales plan
It is developing the next generation of TV display, and is targeting a 20% market share
Will launch the Sony Internet TV by autumn 2010
Will strive to leverage PS3s strengths to create new user experiences and generate sales
Source:Annual Report 2009
7/29/2019 Sony market analysis
11/2911
Sony | Board Members
Title Name
Chairman of the Board Yotaro Kobayashi
Sony Corporation Representative Corporate Executive Officer, Chairman, CEO
and President
Sir Howard Stringer
Sony Corporation Representative Corporate Executive Officer, Vice Chairman Ryoji Chubachi
Board Member Yotaro Kobayashi
Board Member Yoshiaki Yamauchi
Board Member Sir Peter Bonfield
Board Member Fujio Cho
Board Member Ryuji Yasuda
Board Member Yukako Uchinaga
Board Member Mitsuaki Yahagi
Board Member Tsun-Yan Hsieh
Board Member Roland A. Hernandez
Board Member Kanemitsu Anraku
Board Member Yorihiko Kojima
Board Member Osamu Nagayama
Source:Annual Report 2009
7/29/2019 Sony market analysis
12/2912
Sony | Management
Title Name
Chairman, Chief Executive Officer and President Sir Howard StringerVice Chairman, Officer in charge of Product Quality & Safety and
Environmental Affairs
Ryoji Chubachi
Executive Deputy President, Officer in charge of Manufacturing,
Logistics, Procurement and CS Platform
Yutaka Nakagawa
Executive Deputy President, Officer in charge of the Consumer
Products, Professional Solutions and Device businesses
Hiroshi Yoshioka
EVP, Officer in charge of Intellectual Property and the Disc
Manufacturing business
Keiji Kimura
EVP, General Counsel Nicole Seligman
EVP, Officer in charge of the Networked Products and Services
businesses
Kazuo Hirai
EVP, Chief Financial Officer Masaru Kato
Source:Annual Report 2009
7/29/2019 Sony market analysis
13/2913
Sony | Geography andBusiness Segment Based
Source:Annual Report 2009
Sector Performance:
All the business lines of the company reported weak revenues as a result of the negative effect of the appreciation ofthe yen against the US dollar, downturn in business environment and decline in equity in net income (loss) for Sony
Ericsson Europe, Japan and USA together comprised three-fourth of Sonys revenue
Top three business segments- Consumer Products & Devices, Network Products & Services and B2B & Discmanufacturing generated more than 65% of Sonys 2009 revenue
2009 Revenue Breakup by Geography
26%
24%
26%
24%
Europe Japan US Other Countries
2009 Revenue Breakup by Business Segments
7/29/2019 Sony market analysis
14/29
14
Business Segments
7/29/2019 Sony market analysis
15/29
15
Business Segment | Consumer Products & Devices (1/2)
Includes Sonys televisions, digital imaging, audio-video, semiconductors, components and otherbusinesses
Segment as a whole was affected by unfavorable currency exchange rates
Segment Performance:
The operating loss narrowed due to:
Improvement in the cost of sales ratio
Reduction in selling, general and administrative expenses
Figures in bn FY08 A FY09 A FY10 E FY11 E
Revenue 4,031.5 3,227.7 3,655.9 3,624.5
Revenue Growth -17.47% -19.94% 13.27% -0.86%
Operating Income -115.1 -46.5 1.0 99.0
Operating Margin -2.9% -1.4% 0% 2.7%
Source:Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware &
Equipment) July 2010
Revenue and profitability areexpected to improve in FY2010 and FY 2011
Targets and Strategy:To regain leadership position in LCD TV market- targeting 20% worldwide market share (unit basis) by FY2012
7/29/2019 Sony market analysis
16/29
16
Business Segment | Consumer Products & Devices (2/2)
Source:Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware &
Equipment) July 2010
Sales decreased for the following , reflecting the contraction of these markets:
BRAVIA LCD televisions, due to declines in unit selling prices
Handycam video cameras
Cyber-shot compact digital cameras
Products contributing to the improvement in operating results included *BRAVIA LCD televisions and Cyber-shotcompact digital cameras and image sensors, which saw an increase in sales.
Segments Figures in bn FY08 A FY09 A FY10 E FY11 E
TelevisionsRevenue 1,275.7 1,005.8 1,335.3 1,335.3
Operating Margin -10.0% - -7.3% -1.5% 0.0%
Digital ImagingRevenue 863.8 679.2 642.2 613.8
Operating Margin 10.1% 13.7% 8.4% 8.5%
Audio and VideoRevenue 555.7 516.6 516.6 516.6
Operating Margin -0.3% 0.0% 0.0% 0.0%
SemiconductorsRevenue 267.2 277.9 277.9 277.9
Operating Margin 8.2% 10.4% 10.8% 10.8%
ComponentsRevenue 623.9 479.1 530.0 530.0
Operating Margin 0.0% 4.2% 5.7% 5.7%
*BRAVIA LCD televisions and Cyber-shot compact digital cameras the benefits of cost reduction efforts exceeded the impact of the decrease in sales
7/29/2019 Sony market analysis
17/29
17
Business Segment | Networked Products & Services
Source:Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware &
Equipment) July 2010
Segments Figures in bn FY08 A FY09 A FY10 E FY11 E
Networked
Products &
Services
Revenue 1,755.6 1,575.8 1,643.33 1,492.3
Revenue Growth -16.74%- 10.24% 4.29% -9.19%
Operating Income -87.4 -83.1 -49.0 -13.0
Operating Margin -5.0% -5.3% -3.0% -0.9%
GameRevenue 984.9 840.7 801.4 621.2
Operating Margin -5.9% -6.8% 0.0% 1.3%
PC and Other
Networked
Business
Revenue 699.9 670.9 733.0 778.0
Operating Margin -2.9% - -3.9% -1.2% 0.6%
Segment consists of Sonys game business, PC and other network related businesses
The deterioration of segment sales was attributable largely to decreases for the game business and for VAIO PCs.
Segment Performance: Sales declined 10.2% year-on-year to reach 1,575.8 billion
Operating loss improved 4.4 billion Y-O-Y despite a deterioration of operating income in the game business due to :
Improvement in the profitability of Walkman digital music players and other products
Revenue is expected to improve in FY 2010 followed by a decline in FY 2011 but profitability is projected to increase
Sales in the Game businessdeclined due to:
Unfavorable foreign currency
exchange rates Declines in unit sales of PSP
hardware and playstation2software
7/29/2019 Sony market analysis
18/29
18
Business Segment | B2B & Disc Manufacturing
Source:Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware &
Equipment) July 2010
Segments Figures in bn FY08 A FY09 A FY10 E FY11 E
B2B & Disc
Manufacturing
Revenue 560.0 504.2 554.6 3 582.3
Revenue Growth -32.9% -10.0% 10.0% 5.0%
Operating Income 6.5 -7.2 -5.0 6.0
Operating Margin 1.2% -1.4% -0.9% 1.0%
Segment encompasses Sonys B2B businesses, including broadcast and professional-use products, and thedisc manufacturing business, including Blu-ray Disc, DVD and CD.
The deterioration of segment sales was attributable largely to unfavorable foreign currency exchange rates, as well asdecreased sales of broadcast- and professional-use products
Segment Performance:
Sales in the B2B & Disc Manufacturing segment decreased 10.0% year-on-year, to 504.2 billion
Reported an operating loss of 7.2 billion, a deterioration of 13.7 billion year-on-year
Revenue is expected to improve in FY 2010and FY 2011
Sales in the broadcast andprofessional-use productsdeclined due to:
due to a deterioration of thebusiness environment indeveloped countries
decreases in unit selling prices inthe disc manufacturing business
7/29/2019 Sony market analysis
19/29
19
Business Segment | Pictures
Source:Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware &
Equipment) July 2010
Segment Figures in bn FY08 A FY09 A FY10 E FY11 E
Pictures
Revenue 717.5 705.2 705.0 705.0
Revenue Growth -16.4% -1.7% 0.0% 0.0%
Operating Income 29.9 42.8 35.0 35.0
Operating Margin 4.2% 6.1% 5.0% 5.0%
Segment comprises the motion pictures and television programming, and other businesses of SonyPictures Entertainment Inc. (SPE), which is based in the United States
Decline in segment sales was due primarily to the appreciation of the yen against the U.S. dollar.
Segment Performance:
On a U.S. dollar basis, segment sales increased 7.0%. primarily due to :
Higher worldwide theatrical and home entertainment revenues from the current years film slate
Increased television revenues due to higher advertising revenues from a number of international (non-NorthAmerica) channels.
Operating income in the segment increased 43.1% year-on-year, to 42.8 billion.
Revenue and profitability are expected to decline in FY 2010 and FY 2011
Increase in operating income wasprimarily due to:
Sale of a portion of SPEs equity
interests in both a Latin Americanpremium pay television business and
a U.S. cable network Sale of all of its equity interest in a
Central European premium paytelevision business
Sony Pictures commanded 13.6% of North American theatrical box office revenue market share in FY2009
7/29/2019 Sony market analysis
20/29
20
Business Segment | Music
Source:Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware &
Equipment) July 2010
Segment Figures in bn FY08 A FY09 A FY10 E FY11 E
Pictures
Revenue 387.1 522.6 523.0 523.0
Revenue Growth 10.60% 35.00% 0.08% 0.00%
Operating Income 27.8 36.5 37.0 37.0
Operating Margin 7.2% 7.0% 7.1% 7.1%
Sonys Music segment is primarily comprised of the music recording businesses of U.S.-based Sony MusicEntertainment (SME) and Sony Music Entertainment (Japan) Inc. (SMEJ).
Music segment is struggling with owing to the appreciation of the yen against the U.S. dollar and the continuedcontraction of the physical music market.
Segment Performance:
Sales in the Music segment rose 35.0% year-on-year, to 522.6 billion.
Operating income rose 31.1% year-on-year, to 36.5 billion.
Increase in operating income wasprimarily due to:
Improved results at SME and SMEJ,which reflected contributions from hitproducts including Michael Jacksoncatalog product
Decline in restructuring expensesfrom the previous fiscal year
SME commanded 28.6% of US market share and SMEJ commanded 17.4% of Japanese market share and SMEJ in FY2009
7/29/2019 Sony market analysis
21/29
21
Business Segment | Financial Services
Source:Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware &
Equipment) July 2010
Segment Figures in bn FY08 A FY09 A FY10 E FY11 E
Pictures
Revenue 538.2 851.4 851.0 851.0
Revenue Growth -7.38% 58.19% -0.05% 0.00%
Operating Income -31.2 162.5 130.0 130.0
Operating Margin -5.8% 19.1% 15.3% 15.3%
Segment consists of the financial services businesses of Sony Financial Holdings Inc. (SFH) and itsconsolidated subsidiaries, including Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. and
Sony Bank Inc., as well as Sony Finance International Inc.
Financial Services revenue increased 58.2% Y-o-Y, to 851.4 billion mainly due to higher revenue at Sony Life.
Sony Life also reported higher revenue from insurance premiums, owing to a steady increase in policy amount in force.
Segment Performance:
Operating income amounted to 162.5 billion, an improvement of 193.7 billion year-on-year
Increase in operating income wasprimarily due to:
Improvement in net valuation gainsfrom investments in convertible bonds
Decline in the provision of policy
reserves Marked decrease in impairment
losses on equity securities Rise in the Japanese stock market
7/29/2019 Sony market analysis
22/29
22
Threats
Competitive Pressures
Counterfeit Products
Stringent Regulations
Sony | SWOT Analysis
Weaknesses
Lower Returns in terms of poor profitabilityratios.
In 2009, it posted attenuated ROE as
-3.3% over 10.662% in 2008. Thiswas below the S&P 500 companiesaverage of 12.9%.
Poor Liquidity Position
Operational Inefficiency
Opportunities
Strategic Acquisition
Demand for Video Consoles
Growth in LCD Display Market
In July 2009, Sony signed adefinitive agreement with SharpCorporation for a joint venturecompany for manufacturing andselling large-sized LCD panels andmodules
Strengths
Worldwide Presence
In 2009, Other areas accountedfor 26.5%, followed by 25.7% fromEurope, 24.2% from Japan and23.6% from the US
Diversified BusinessA company like Sony Corporation,
with a huge global presence,diversified businesses and Strongbrand equity, operating in a highly
competitive market will need tocapitalize on opportunities like thegrowing video console and LCD
market. It has been suffering fromlower Returns and poor Liquidity
and efficiency position. To maintainleadership, it needs to fightcounterfeit products among
tightening regulations
7/29/2019 Sony market analysis
23/29
23
Sony| Recent News
29th, July, 2010
Announced results for the 3rd quarter ended 30th June 2010Reported sales of $ 18,663 million , an Y-o-Y increase of 3.8% and Operating income of $ 753 million as compared to an operatingloss in the same quarter of the previous fiscal year
20th, July, 2010
Tohoku University and Sony Corporation jointly develop the worlds first blue-violet ultrafast pulsed semiconductor laserwith 100 watt outputTohoku University and Advanced Materials Laboratories, Sony Corporation have succeeded in jointly developing a blue-violetultrafast pulsed semiconductor laser*2 with dramatically improved peak laser beam output levels that are 100 times that of the
world's current highest levels.
13th, July, 2010
Sony expands silicon tuner module lineup and begins to ship samples to grow sales
Sony Corporation announced that it will begin to ship samples of its extensive lineup of silicon tuner modules, which incorporateSony's silicon turner IC that conform to worldwide broadcast systems. Sony will build up a global business by launching 40 small,high-performance silicon tuner modules, which incorporate its proprietary radio frequency circuit technology
22nd, July, 2010
Sony develops 1.2kWh-class energy storage module using lithium-ion rechargeable batteries made from olivine-typelithium iron phosphate
Sony today announced the development of an energy storage module using lithium-ion rechargeable batteries made with olivine-type lithium iron phosphate as the cathode material. Sample shipments of the new module are scheduled to begin from June,2010. The newly-developed module is an energy storage module with 1.2kWh-class capacity
Source: Company Website
7/29/2019 Sony market analysis
24/29
24
Competitive Analysis
7/29/2019 Sony market analysis
25/29
25
Competitive Analysis | Electronics*
Company** Sony Panasonic*** Phillips LG
Revenue (FY2009)
$31.5 bn $36.7 bn $11.8 bn $16.5 bn
RevenueGrowth y-o-y
(20%) (9%) (22%) na
OperatingMargin
Loss of $504 mn 3% 4% na
Strategy Partner with ITcompanies to offerinnovative productsand services Planning to launch
Sony Internet TVin collaborationwith Google
Expand its flat-panel TVsbusiness, including bothplasma and LCD
Innovating existing productlines Launch plasma TVs that
deliver full HD 3Dimages in 2010
Improve geographical
coverage and
strengthen position in
Brazil, Russia, India and
China through
managerial focus and
investment
Continue to focus on
technology and stylish
design for superior products
Major Products LCD TV, digital
camera, home video,portable audio
Flat panel TV, blue ray disc
recorder, automotiveelectronics
LCD TV, audio & video
Multimedia, peripherals& accessories
LCD TV, plasma TV,
Home audio and video,
optical storage
Source: Company websites
Sonys consumer products segments performance was the worst among the peer group; although
rest of the players reported decline in revenues, they maintained profitability
* Previous years electronics segment is reorganized into Consumer Products & Devices segment by Sony
** All figures in USD
*** Panasonic acquired Sanyo Electric Company in FY 2009
7/29/2019 Sony market analysis
26/29
26
Competitive Analysis | Game*
Company Sony Nintendo Microsoft
Revenue (FY 2009) $9.1 bn $15.5 bn $7.7 bn
Revenue Growth y-
o-y (15%) (22%) (6%)
Operating Margin NA 25% 2%
Strategy Focus on innovation todeliver new and exciting userexperiences to customers
Release own 3D game titlesand continue to activelysupport the development of3D games by third-partysoftware developers
Focus on new and innovativeproducts
Focus on innovation in hardware
architecture, new developer
tools, online gaming services,
and continued strong exclusive
content from its own game
franchises
Major Products PlayStation
PlayStation3PlayStation Portable
Wii
Nintendo DSNintendo DSi
Xbox 360 console
Xbox LiveZune
Source: Company websites
All the players reported decline in revenues in FY 2009; major focus of Sony and its
competitors is on innovative products
* Previous years Game segment is reorganized into Network Products & Services segment by Sony
** All figures in USD
7/29/2019 Sony market analysis
27/29
27
Competitive Analysis | Pictures
Company Sony Disney Warner Bros News Corp
Revenue (FY
2009) $7.6 bn $6 bn $11 bn $6 bn
Revenue
Growth y-o-y (1.7%) (16%) (3%) (11%)
Operating
Margin 6% 3% 10% 14%
Strategy Create a diverseslate of entertainmentand develop newways such as 3D toreach consumersaround the world
Heavy use of technology tobring down the cost ofmaking, marketing anddistributing the content
Streamline the
operations through
restructuring and
outsourcing
NA
Major Movies(2009)
Cloudy With aChance of Meatballs
Julie & Julia
District 9
Zombieland
WALL-E
The Chronicles of Narnia:Prince Caspian
Harry Potter and theHalf-Blood Prince
The Hangover
Sherlock Holmes
The Blind Side andInvictus
Marley & Me and Taken
Night at the Museum
Battle of the Smithsonian
X-Men Origins
Source: Company websites
Sonys pictures segment reported least decline in revenues among peers, however its profitability is
lowers than Warner and News Corp
7/29/2019 Sony market analysis
28/29
28
Competitive Analysis | Music
Company Sony Universal Music EMI Music Warner Music
Revenue (FY2009)
$5.51 bn $6.1 bn 1.6 bn $3.2 bn
Revenue
Growth y-o-y 41% (6%) 7% (9%)
OperatingMargin
7% 13% 19% 4%
Strategy Focus on developingboth well-known andemerging recordingartists
na Reposition itself as a
comprehensive rights
management company
that can take full
advantage of all global
opportunities in all
markets for music
Evaluate opportunities to
add to its catalog or acquire
and make investments in
companies engaged in
similar businesses
Focus on digital distribution
of content
Major Brands AristaColumbia Nashville
Legacy
Masterworks
Epic
A&M/Octone The Verve Music Group
Decca Label Group
Universal Records South
Universal Music GroupNashville
AngelAstralwerks
Blue Note
Capital Nashville
Mute
AsylumAtlantic
Bad Boy
Cordless
Rhino
Source: Company websites
Sonys music segment reported most healthy growth in revenues, however profitability is lower than 2
of its biggest competitors Universal Music and EMI
7/29/2019 Sony market analysis
29/29
Thank you
top related