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About Sony Corporation

Jul 21, 2016

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IT IS ABOUT SUCESS STORY OF SONY CORPORATION

  • SUCCESS STORY-JAPANESE STYLESUCCESS STORY-JAPANESE STYLE

    PRINCIPLES OF MARKETING MANAGEMENT PROJECT

    MADE BY:MADE BY:PRIYA SHARMAPRIYA SHARMA

    6868BMS-BBMS-B

  • CONTENTS EXTRACT OF THE PROJECT

    AKIO MORITA'S LIFE

    STORY BEHIND FORMATION OF SONY COMPANY

    HISTORY OF SONY CORPORATION

    AMERICAN AND JAPANESE STYLE(THE DIFFERENCE)

    OTHER AFFILIATIONS AND AWARDS

    ABOUT SONY MARKETING PLAN- BACKGROUND ,AIM , CHALLENGE , THREATS OPPURTINITIES , COMPETITOR ANALYSIS , PRODUCT STRATERGY , TARGET MARKET ,DIFFERENTIATION , POSITIONING,PROMOTIONAL STRATERGY , MANAGERIAL IMPLICATIONS.

    PORTET'S FIVE FORCES AND SWOT ANALYSIS OF SONY

    HISTORY OF SONY ERICSSON AS A COMPANY

    MOTIVATION BEHIND JOINT VENTURE

    OBJECTIVES AND STRATERGIES

    PROBLEMS THE JOINT VENTURE HAS ENCOUNTERED SINCE THE FORMATION

    WHY JOINT VENTURE IS NOT SUCCESSFUL?

    STRATEGIES THEY USED TO ADDRESS THE JOINT VENTURE PROBLEMS

  • EXTRACT OF THE PROJECT

    Shortly after world war II , a small group gathered in a burned out dept. store in devastated Tokyo. There they found a company to develop the technologies that might rebuild japan's economy.

    The company they founded was sony and one of them,a young engineer named Akio Morita,become its chairman.

    Born :Nagoya, Aichi, JapanDied:- October 3, 1999 (aged 78) Tokyo, JapanCause of death:- Pneumonia

    AKIO MORITA

  • AKIO MORITA'S LIFE

    The first son and 15th-generation heir to a sake-brewing family (sake means Japanese wine') in kosugaya village near Nagoya in Japan.

    In 1944 he graduated from Osaka imperial university with a degree in physics and later commissioned as a lieutenant in the imperial Japanese navy, and served in world war II. During service, he met his future business partner Masaru Ibuka in the navy's wartime research committee.

    He became chairman of board & CEO of sony corporation in Jan, 1976

  • STORY BEHIND FORMATION OF SONY COMPANY

    During World War II,military authorities in Japan were aware that their military projects were not destined to succeed because they were lacking in resources and in time, both.

    On August 6, 1945 when Americans dropped atom bomb at Hiroshima.This incident also gave a solid impression & belief to Japanese that the

    Japan's military tech. was at least 20 years behind Americans. Raids over Tokyo-Yokohama area almost every day and every night in July and

    August of 1945, Morita's family was also deeply concerned that with the aggressiveness of Japan military that it would only leave a trail of bloody war but like most Japanese he had sensed for a long time that War was lost, but they had no idea as how it would end and what would happen after, however Morita had a feeling that War wouldn't continue longer.

    TO BE CONT...

  • Only, after announcement from Emperor Hirohito on August 15, 1945 that was war was over, most of the Japanese like Morita was relieved.

    After the war,he was called by his physics teacher Professor Hattori to teach at Tokyo Institute of Technology, due to shortage of faculty.

    During this period, Morita also managed to establish contact with Masaru Ibuka, a brilliant engineer with whom he had worked earlier on a research project team. Ibuka was also opening a new lab in Tokyo called Nihon Sokuteiki or Japan Measuring instrument company, employed about fifteen hundred people that was into making small mechanical elements that controlled the frequency of radar devices. However, Ibuka didn't feel professionally satisfied with merely producing components in large quantities in the country side.

    TO BE CONT...

  • Thus, on the eve of May 7, 1946 some 20 people gathered on the 3rd floor of a bombed-out & burned-out department store building in a war-devastated downtown Tokyo to establish a new company: Tokyo Telecommunications Engineering Corp., lead by Ibuka which was later to become the Sony Corporation.

    The TTEC, co. was formed with 20 employees and initial capital of 190,000 (USD $ 500) that Morita's family invested in TTEC, a forerunner of Sony.

    After formation of their company Ibuka had limited resources both in terms of cash and products so to get the cash flow ticking but at the same time they wanted to build something new along with establishing a financial base for the company. So, the group 2 decided to work on a simple rice cooker but they never perfected it, although they made several models.

    They did manage to get some cash flow with selling the home made heating pad made by wives of the employees of the company. TO BE CONT...

  • His next attempt was to produce AM short wave received, which was little expensive but become popular, after generous promotion given by newspaper Asahi Shimbun Akio offered to help Masaru Ibuka, who had dire needs for funding for paying to employees of his company.

    Since,Akio already had a family business and thus by permission from Morita's father, Ibuka's and Akio started working together on their new business, while Akio younger brother volunteered to take over as Sake brewer of his family business.

    Most of funding to their company was raised with loan given by his father who in-turn received the stocks in the company. Ibuka & Akio attempted to create a wire recorder but they couldn't achieve it as no manufacturer was willing to provide a raw material, which too expensive to produce but had too little customer.

    TO BE CONT...

  • Next attempt was to build a large broadcasting and mixing unit for NHK,(NHK ( Nippon Hs Kykai?, official English name: Japan Broadcasting Corporation) was appreciated by their customers.

    While delivering mixing unit, Ibuka spotted American made Wilcox-Gay tape recorder, which was superior than their Wire recorder design . This gave them idea to work on tape recorder design and they managed to convince their colleagues.

    Subsequently, they attempted to develop the tape base material on their own by using indigenous technology and got orders from IBM in 1965, when IBM decided to use magnetic tape as storage in their computer devices. However, they had a rude awakening because that the tape recorder was so new to Japan that no one was aware and most of people couldn't see as why they should buy it. As a result, they couldn't sell it in Japan though they produced 50 units at a time.

    TO BE CONT...

  • Morita began to engage customers in an American style of selling which was in form of verbal communication and audio/visual training that lead him to successful selling of products and also attempted for product improvisation for their target customers.

    In a process, they also filed patents for AC Bias Systems, which prohibited any tape record makers to sell tape recorders in Japan without obtaining the license from them and earning them a royalty fees.

    These were times, when Morita fought with some American companies like Balcom Trading Company and Armour Research, trying to refute the claims and patents, which he won through lawsuits giving mandate in the favor of Morita & Ibuka co. In course of settlement, they also claimed rights to use Armour's patent in US and therefore could export without paying a license fee.

    Both Ibuka & Akio after getting initial success with tape recorder, started eyeing international market for the products made by their company TTEC, K.K. . With Ibuka's vision, Akio had his Eureka!, foreseeing the future of the transistor-based microelectronics that was, of course, at heart of Sony's success in transistor radios, but is also core tech. of entire computer & consumer electronics revolutions of that times.

  • HISTORY OF SONY CORPORATION

    In 1949, company developed magnetic recording tape and In 1950, sold the first tape recorder in Japan. In 1957,produced a pocket-sized radio (the first fully-transistorized). While exploring international market like US, Morita experienced that it

    was tough for customers to pronounce the Japanese name of his company and hence in 1958, Morita and Ibuka decided to rename their company Sony (sonus is Latin for sound, and Sonny-boys is Japanese slang for "whiz kids with young and pioneering spirits ) .

    Hence Morita set the goals for radio redesign using transistors, as small enough to fit into a shirt pocket. Hence, their products design philosophy was not just to make portable products but also pocket-able products, which surely attracted many customers in Japan.

  • American business is in contrast to Japanese management style and philosophy .

    Japanese business is driven by long range and collective e.g. making profit for the purpose of continued employment and improving livelihood of the workers whereas American business is driven by assured return to the investors and yearly profits.

    American business pride themselves on being rational in their business judgment which is derived from total logic of American business schools that seems to be cold, deemphasizing the human element.

    American and Japanese Styles (The difference)

    TO BE CONT...

  • But according to Akio it requires more patience, cultural alignment to do business with Japanese co. , that to achieve high efficiency and productivity, it is necessary to Maintain a close cordial relationship with the employees that helps to upkeep high moral of the employees.

    American business focuses too much on short-term profits, such as

    moving manufacturing overseas, while sacrificing long term overall livelihood. Employees in Japanese companies form a tight community, so overall results are better.

  • Morita was vice chairman of the Japan Business Federation (Japan Federat

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