Maithili D. Jani
Maithili D. Jani
Table of contents1Introduction
origin of name ; Mission & vision
Sony India; Products
Porter s Five Forces
8 9Facts And Figures
Strategies Followed By Sony
Introduction Multinational conglomerate corporation headquartered in Mintao (Japan); One of leading manufacturers of electronics, video, communications, video game consoles and information technology products for the consumer and proffesional market
Introduction Sony is among the Worldwide Top 20 Semiconductor Sales Leaders; The company's slogan is Sony. Like no other;and recent is make believe; Sony is the electronics business unit and the parent company of the Sony Group which is engaged in business through its five operating segments, these make Sony one of the most comprehensive entertainment companies in the world; Sonys principal business operations include: Sony Corporation, Sony Pictures Entertainment, Sony Computer Entertainment, Sony BMG Music Entertainment, Sonny Ericsson, Sony Financial Holdings.
Origin of name The 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.
Sony Corporation Sony Corporation http://www.sony-europe.com/article/id/1178278971500
Mission & Vision
Mission - Sony is working to create value for our stake holders, and improve the quality of life for the next generation through our innovations.
Vision - we must seek new approaches to transform our ability to achieve both profitable and sustainable growth.Sony Corporation http://www.sony-europe.com/article/id/1178278971157
Affiliated Companies (Japan)Sony Bank Inc. Sony Broadband Solutions Corporation Sony Broadcast Media Co., Ltd Sony Chemical & Information Device Corporation Sony Computer Entertainment Inc. Sony Computer Science Laboratories, Inc., Sony Digital Network Applications Inc. Sony Disc & Digital Solutions Inc. Sony EMCS Corporation. Sony Energy Device Corporation.
Sony Engineering CorporationSony Enterprise Co., Ltd. Sony Facility Management Corporation Sony Finance International, Inc. Sony Financial Holdings, Inc. Sony Global Solutions Inc. Sony Human Capital Corporation. Sony Institute of Higher Education Shohoku College Sony Life Insurance Co., Ltd. Sony LSI Design Inc.
Sonny AsuranceSony Manufacturing Systems Corporation Sony Marketing (Japan) Inc. Sony Music Communications Inc. Sony Music Distribution (Japan) Inc. Sony Music Entertainment (Japan) Inc.
Affiliated Companies (Outside Japan)Sony Americas Holding,Inc Sony de Mexico S.A. de C.V. Sony Deutschland G.m.b.H. Sony Device Technology (Thailand) Co., Ltd. Sony Electronics Asia Pacific Pte Ltd. Sony Electronics Inc. Sony Electronics (Singapore) Pte. Ltd. Sony Korea Corporation SONY BMG MUSIC ENTERTAINMENT BV Sony Brasil Ltda. Sony Broadband Entertainment Inc. Sony Capital Corporation Sony Computer Entertainment America Inc. Sony Computer Entertainment Europe Limited. Sony Latin America Inc. Sony Magnetic Products Inc. of America Sony Malaysia Sdn. Bhd. Sony Corporation of Hong Kong Ltd. Sony Corporation of Panama, S. A. Sony (China) Limited Sony Corporation of Hong Kong Ltd. Sony Corporation of Panama, S. A. Sony (China) Limited
Sony Australia Ltd.Sony Benelux B.V. Sony Berlin G.m.b.H. SONY BMG MANAGEMENT CO., LLC Sony BMG Music Entertainment
History Started in 1946 by Masaru Ibuka and Akio Morita in Tokyo Japan. Sony found its beginning in the wake of World War II. in 1946 The company had $530 in capital and a total of eight employees Sony first branded product was a transistor radio launched in 1955 and started to sell under Sony from 1958. In 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.http://www.sony.co.in/section/aboutsony
HistoryThe 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 technology to his Japanese company. the transistor
In August 1955, Tokyo Telecommunications Engineering released the Sony TR-55, Japan's first commercially produced transistor radio.
History 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 32 mm) transistor radio in commercial production. It was a worldwide commercial success.
Timeline 1946 - Tokyo Telecom Engineering 1950 - First Japanese tape recorder 1955 - First transistor radios 1957 - First pocket-sized radio 1958 - Name change to Sony (from "sonus," Latin for "sound," and "sonny," meaning little man) 1968 - Intro of Trinitron color TV explosive growth 1979 - Walkman personal stereo http://www.sony.co.in/section/corporatepressreleases
Timeline Contd. 1980s - Major Producer of computer disks/ floppies 1988 - Bought CBS Records for $2 billion. 1989 - Bought Columbia Pictures for $4.5 billion. 1994 - Sony Playstation released to great success. 1997 - JV with Philips (inventors of the CD) to make Super Audio CD 1998 - Launched Wega flat-screen TV 1999 - JV with Philips, Sun Microsystems to develop networked entertainment products 1999 - Walkman with MP3 capabilities
Timeline contd.. 2000 - Formed PlayStation.com games/software online 2000 - Restructured all entertainment units under Sony Broadband Entertainment 2001 - JV Sakura Bank and JP Morgan Chase for online bank. 2007 - Sony India announces Record Growth Performance for Q1 2007 2007 Sony India wins Avaya Global connect Customer Responsiveness Awards
Latest Update October 2012 Sony introduces new and innovative products this festive season
September 2012 EISA Rewards Sony with 5 Best Products of the Year Awards June 2012 Mr. Kenichiro Hibi appointed as Managing Director, Sony India Sony India aims to sell 6.5 lakh VAIO units in FY12 Sony India achieves sales of Rs. 6,313 crore in FY11
April 2012 Sony India dominates Digital Still Camera market with aim to capture 45% share in FY12http://www.sony.co.in/section/corporatepressreleases
Sony India Started its operation in India from 1994 They started its operation with highly concentrating on Marketing Strategies in order to make familiar about the product and company. Sony is the first mover in India in every electronic segment. Strong Distribution network in India - 4000 dealers and distributors, 240 exclusive Sony World and 19 direct branch location Also well known for quality service in India with 190 authorized service centers
Brands & Products
AWARDS Sonys Contactless IC Card Chip Acquires Worlds First*1 EAL6+ Certification of Common Criteria (ISO/IEC 15408), the International Standard for IT Security 21 Sony products were recognized with an iF Product Design Award, Sony won Good Design Awards continuously from last 11 years for that different products third consecutive Gold Award for BRAVIA televisions and the second for a (alpha) E-mount series DSLRs. The red dot Design Award is a worldwide design award given in recognition of superior product design and communication design. Design Zentrum Nordrheim Westfalen sponsors the red dot Design Award. Sony has won 16 "red dot" awards including 1 "best of the best".http://www.sony.net/Fun/design/awards/good_design.html http://www.sony.net/Fun/design/awards/if_design2012_gw.html http://www.sony.net/SonyInfo/csr/news/awards/index.html
Generic Business Level Strategies AlliancesPhilips (to develop and lunch CD players & CDs-1980)
AcquisitionsColombia Pictures was acquired
Competitors Analyses Audio VisualVHS Vs Betamax HD Vs BlueRay
GamesNintendo, Microsoft, Xbox 360
Mobile PhonesSamsung, Nokia, Apple
EntertainmentStar, Zee TV
STRENGTH known for innovation and creativity Caters Quality products Highly reputed brand image Economies of scale and high variety in products such as gaming diversified client which reduces business risk Ability to produce quality product Innovation First Mover Advantage Differentiation Concept Several Market Everything for everyone
WEAKNESS Lack of innovation in PS3 as Sony focused on digital technology which can share videos just on HD which is not common with consumers. Thus, Sony suffered a loss. Not able to manage certain products which faced loss due to high cost of products such as play station 3. Sony recently decreased price by $100 to pocket some sale PS 3 also lack in range of video games as majorly video games are first-person shooter games, which is liked by particular market. Sony has to increase the range of video games to entertain more markets. Products are not able to attain sales as expected. The strategic direction is not properly directed
Opportunities They can reduce their products prices and attract customers. Global expansion in BRIC companies with other growing countries. Sony can expand in all segments as its products cater what consumer demands. Alliance with FIFA to increase corporate value
By strength (Mobile Market) New Product as per Market Need 3D Market Opportunity to reduce price Global expansion Alliance with FIFA to increase corporate value
Threats Powerful competitors Fake products launched in market Sony could not formulate and manage their growth strategy Sony losing customers due to diversifying products in varied markets types for instance Sony not able to maintain high profit margin due to unfavourable foreign exchange rate. Major impact of global downfall In the economies PowerfulCompetition as Microsoft, Apple, Toshiba, LG Slowdown in economy Chinese Market Constant change in Technology
COMPETITIVE ANALYSIS PORTERS FIVE FORCES ANALYSIS CHART
INTERNAL RIVALRY Sony operates in several industries, and thus faces intense competition across sectors. Sonys main market segments include Electronics, Game, Pictures, Financial Services and Joint Ventures. 17While no other business deals with all five segments, the most prevalent competitors in these industries are Apple, Samsung, Canon, Microsoft and LG Electronics.
SUPPLIER POWER Supplier power is relatively low. Sony manufactures their products in myriad places around the world; this global supply chain means suppliers are not concentrated, and Sony can move around to the supplier who will offer the best deal; suppliers are forced to cut prices or find a new buyer
BUYER POWER Buyers in these industries have substantial power. A potential buyers ability to gain information is very easy with online reviews of products. With this information, a buyer can switch from one brand to another without high switching or transaction costs.
ENTRY Entry divides the market demand amongst more sellers and decreases each companys share. Fortunately for Sony, the threat of new entrants is relatively low. Economies of scale, product differentiation, capital requirements, technology knowledge and government policy all play a role in protecting Sony from new entrants. Sony, on the other hand, has already gained this advantage. Capital requirements to enter are high, as these products are high-end, expensive luxury goods.
Cont STAR:Play Station LCD T.V
QUESTION MARK:Mobile Phones Camera
SONYS STOCK PRICES AGAINST NIKKEI 225 (2007-2011
INTERPRETATION : In 2011, Sonys stock price declined by 54%. A Beta statistic of 1.47 against the US stock market is consistent with the expectation that tech companies are more volatile than average.
SONYS PRICE/BOOK VALUE (1997-2011)
INTERPRETATION : The price/book ratio of Sony peaked in the late 90s. The ratio decreased almost constantly in the 2000s, and went below 1 in 2002. This shows that the market has not been willing to pay a high price for each unit of book value. In other words, the market does not have confidence in the future growth of the companys equity value. The most recent return on equity ratio is 13.67%, which echoes the pessimism by investors
WHAT SONYS FINANCIALS TELL US ABOUT THEIR STRATEGIES Sony must immediately focus on increasing sales in order to meet their short-term liabilities. While we recommend restructurings among Sonys product lines, the company must first ensure stable cash flows to avoid more severe liquidity problems. Sony has effectively reduced its COGS as a percentage of sales in the past few years. They should continue to make efforts to increase gross margins in the coming years by reducing manufacturing costs and generating synergies among their product lines. Sony must find ways to utilize their increased leverage and other asset items more efficiently to generate sales. Sonys stock prices demonstrate low investor confidence. Although this is causing frustration among the current shareholders, Sony should regard this as an opportunity. When expectations are low, it would be easier for the company to
Facts and figures
Sony-FIFA Partnership Sony has signed a global partnership program contract with FIFA, making it a FIFA Partner. During the eight-year period of the contract ( 2007-2014), Sony will exercise a broad array of rights in the Digital Life category which covers a wide range of businesses, from electronics to entertainment at the FIFA World Cup in 2010 (South Africa) and in 2014 (Brazil), as well as more than 50 other FIFA competitions. Sony recognizes that it is increasingly important to enhance the corporate value of the Sony Group. Accordingly, Sony is strengthening its technologies and product appeal, enabling it to offer competitive products as well as conducting effective marketing activities that enhance brand affinity and customer trust.
Sources http://www.11points.com/WebTech/11_Famous_Sony_Products,_Ranked_From_Worst_Failure_to_ Biggest_Success http://wiki.answers.com/Q/Why_is_Sony_so_successful http://www.ehow.com/about_5176244_sony-corporation-history-background.html http://www.sony.net/SonyInfo/CorporateInfo/History/SonyHistory/index.html http://www.sony.co.uk/hub/careers/3/1 http://www.sony-europe.com/article/id/1178278971500 http://www.sony-europe.com/article/id/1178278971157 http://www.sony.co.in/section/aboutsony http://www.sony.co.in/section/corporatepressreleases http://www.sony.net/Fun/design/awards/good_design.html http://www.sony.net/Fun/design/awards/if_design2012_gw.html http://www.sony.net/SonyInfo/csr/news/awards/index.html http://www.sony.net/SonyInfo/IR/financial/fr/highlight.html