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ERP Case Study On Sony Corporation

Jul 15, 2015



  • Sony Corporation

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  • Company LogoPrepared By :- Parimal PatelRoll No.- 29

    Guided By :- Monali Gandhi

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  • Table of contents

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  • IntroductionMultinational corporation headquartered in Mintao (Japan).One of leading manufacturers of electronics, video, communications, video game consoles and information technology products for the consumer and professional markets.The company's slogan is Sony. Like no other.Sony corporation is the electronics business unit and the parent company of the Sony Group.

  • HistoryIn 1945, after World War II, Masaru Ibuka started a radio rapair shop in Tokyo. The next year, he was joined by his collegue Akio Morita and they found a companny which translates in English to Tokyo Telecommunications Engineering Corporation.The company built Japan's first tape recorder called the Type-G.In the early 1960s, Ibuka traveled in the United States and heard about Bell Labs invention of the transistor. He convinced Bell to license the transistor technology to his Japanese company. In August 1955, Tokyo Telecommunications Engineering released the Sony TR-55, Japan's first commercially produced transistor radio.

  • History(Cont)In May 1956, the company released the TR-6, which featured an innovative slim design and sound quality capable of rivaling portable tube radios. It was for the TR-6 that Sony first contracted "Atchan", a cartoon character created by Fuyuhiko Okabe, to become its advertising character. Now known as "Sony Boy", the character first appeared in a cartoon which is holding a TR-6 to his ear. In 1957, Tokyo Telecommunications Engineering came out with the TR-63 model, the smallest (112 71 32mm) transistor radio in commercial production. It was a worldwide commercial success.

  • Origin of nameThe name "Sony" was chosen for the brand as a mix of two words. One was the Latin word Sonus which is the root of "sonic" and "sound" and the other was "sonny", a familiar term used in 1950s America to call a boy. Morita pushed for a word that does not exist in any language so that they could claim the word "Sony" as their own.

    At the time of the change, it was extremely unusual for a Japanese company to use Roman letters instead of kanji to spell its name.

    Sony Corporation Sony Corporation

  • Mission & VisionMission - Sony is working to create value for its stake holders, and improve the quality of life for the next generation through their innovations.

    Vision - They seek new approaches to transform their ability to achieve both profitablity and sustainable growth.Sony Corporation

  • Problems & ChallengesSilo culture Slowness in accessing a productAppreciating value of yen against US dollar also compounded to problems.Highly decentralised and intra-competing.Initially worked well later back fired.Lack of Coordination & Communication across divisions cost them dear.


  • Solution

    After a careful study of their existing system and an in-depth understanding of Sonys requirements, GrapeCity chose to base the new solution on top of Microsoft Commerce Server and Microsoft SQL Server technologies.Microsoft Commerce Server includes crucial components for establishing and expanding online customer focused businesses. It allows for product catalog setup, and ongoing administration and personalization. Besides, it facilitates customer authentication and targeted content and product promotions based on customer behavior and pricing policies. Microsoft SQL Server, besides being a robust RDBMS, permits extensive OLAP and Data mining functionality, thereby facilitating better decision making.

  • Functionalities Of SystemFlexible Product Catalog: The system used Microsoft Commerce Server to manage and publish the product catalogs. This reduced the effort and time to maintain and modify the web site over time and made the user experience consistent. It allowed making modifications to product features, price and other information at any time without requiring custom design effort.

    Automated business workflow: The system used the Commerce Server Pipeline technology and programming platform to automate the backend order processing activities such as order consolidation and acknowledgement, payment processing, inventory control and order version control by integrating with Sonys SAP ERP platform.

  • Functionalities Of System(Cont)

    High System Security: The system is compliant with the United States National Security C2 Standard. A very high security was required because the web site not only managed customers personal and payment information, but it also integrated with Sonys confidential sales and marketing databases via CRM and ERP integrations.

    Customer Analytics: The system allows Sony to analyze their customers online behavior and gain marketing insights that their sales and marketing teams can use to improve their business.

  • Benefits

    The new solution has resulted in the following benefits:Sony was able to attract more visitors to the web site and encourage them to shop online by providing a more personalized experience.It provided real-time visibility into all aspects of the business to internal stakeholders resulting in efficient decision making.It enabled centralized management and reporting by system administrators resulting in more active involvement and effective monitoring.Because the system maximized the use of the Microsoft e-Commerce platform, it took relatively less time to go from design to deployment.

  • Marketing Mix (Product)Sony products can be categorized in the following major product categories:

    Television and projectors,Home video,Home audio,Home theatre system,Digital photography,Handy cam video camera, Portable audio,Game,In-car entertainment,Storage and recording media,Other accessories.

  • SWOTInnovative,Quality products. Human capital Self promoting systemJob rotating systemsGoodwillDistribution network Infrastructure Mass reachControversiesBatteries Dysfunctions


  • SWOT(Cont)OpportunitiesSony ReaderSoftware for computer and Cell phonesTheme parksNews channelRefrigeratorWashing machineAir conditionerRoboticsThreatsCompetitionCompanies like Panasonic , LG , Samsung etc.

  • Case Study

    Sony has followed bring it first strategy.Others followed Sony for the launch.10-percent of the companys sales were committed to research and development.Rapid innovationOut-dating its own product.Launching only when market is ready.Changes in the consumer marketplace rather than by defense industry expenditure.

  • Why it was Unique

    Re-educating the sales force.R&D expenditure. increased advertising . sometimes new facilities for the manufacture of the new products.Obsoletes existing product lines.

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  • Marketing Mix (Promotion)Sony promotes its product through:ContestsAwardsEventsPress releasesLaunch partiesPrint adsFree gifts on purchaseSponsoring

  • Marketing Mix (Place)

    Sony distributes its products in various channels. It uses zero-level channel, one level channel and two-level channel.

  • Place (continued..)Through the Internet, Sony has helped its customers to find the nearest retailer shop where they can buy the Sony products. All they have to do is to enter their website and specify the product and the location.

  • Conclusion The current marketing mix which Sony Corporation has is satisfactory to customer needs. As it can be clearly seen that Sony as a company has expanded its products & services from electronic and digital devices to television broadcasting (SET) & entertainments like music (Sony BMG) & movie production.

    In providing a wide range of products & services with high quality, Sony has by far influenced most of the consumers perception favourably towards its products.

  • BibliographyYadong Luo: Multinational enterprises in emerging markets, Copenhagen Business School Press DK,

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  • One of the TV commercials of SONY Corporation for its BRAVIA brandAny Questions??