Maithili D.

Jani
 Table of contents
1 Introduction

2 origin of name ; Mission & vision

3 History; Timeline

4 Sony India; Products

5 Awards
Awards

6 PP SWOT
SWOTAnalysis
Analysis

7 Porter
PorterssFive
FiveForces
Forces

8 Strategies
StrategiesFollowed
FollowedBy
BySony
Sony

9 Facts
FactsAnd
AndFigures
Figures
 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;

 Sony’s 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
ソニー株式会社

Sony Corporation
ソニー株式会社
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
ソニー株式会社
http://www.sony-europe.com/article/id/1178278971157
 Affiliated Companies (Japan)
Sony Bank Inc. Sony Energy Device Corporation.

Sony Broadband Solutions Corporation Sony Engineering Corporation

Sony Broadcast Media Co., Ltd
Sony Enterprise Co., Ltd.
Sony Chemical & Information Device Corporation
Sony Facility Management Corporation
Sony Computer Entertainment Inc.
Sony Finance International, Inc.
Sony Computer Science Laboratories, Inc.,

Sony Financial Holdings, Inc.

Sony Digital Network Applications Inc.

Sony Disc & Digital Solutions Inc. Sony Global Solutions Inc.

Sony EMCS Corporation. Sony Human Capital Corporation.

Sonny Asurance Sony Institute of Higher Education Shohoku

College
Sony Manufacturing Systems Corporation
Sony Life Insurance Co., Ltd.
Sony Marketing (Japan) Inc.

Sony Music Communications Inc. Sony LSI Design 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 Australia Ltd. Sony Deutschland G.m.b.H.

Sony Benelux B.V. Sony Device Technology (Thailand) Co., Ltd.

Sony Berlin G.m.b.H. Sony Electronics Asia Pacific Pte Ltd.

SONY BMG MANAGEMENT CO., LLC Sony Electronics Inc.

Sony BMG Music Entertainment Sony Electronics (Singapore) Pte. Ltd.

Sony Korea Corporation

SONY BMG MUSIC ENTERTAINMENT BV
Sony Latin America Inc.
Sony Brasil Ltda.
Sony Magnetic Products Inc. of America
Sony Broadband Entertainment Inc.
Sony Malaysia Sdn. Bhd.
Sony Capital Corporation
Sony Corporation of Hong Kong Ltd.
Sony Computer Entertainment America Inc.
Sony Corporation of Panama, S. A.
Sony Computer Entertainment Europe
Limited. Sony (China) Limited

Sony Corporation of Hong Kong Ltd.

Sony Corporation of Panama, S. A.

Sony (China) Limited

 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
 History
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
 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….
 1980’s - 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

 May 2012 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 FY12
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 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
Hot Tip
 AWARDS
 Sony’s Contactless IC Card Chip Acquires World’s 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
http://www.sony.net/SonyInfo/IR/financial/fr/highlight.html
 Generic Business Level Strategies
 Alliances
- Philips (to develop and lunch CD players & CDs-1980)

 Acquisitions
Colombia Pictures was acquired
 Competitors Analyses
 Audio Visual
VHS Vs Betamax
HD Vs BlueRay
 Games
Nintendo, Microsoft, Xbox 360
 Mp3 Players
Apple
 Mobile Phones
Samsung, Nokia, Apple
 Camera
Canon, Nikon
 Entertainment
Star, 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
PORTER’S FIVE FORCES ANALYSIS CHART
 INTERNAL RIVALRY

 Sony operates in several industries, and thus faces intense competition across sectors.
Sony’s 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 buyer’s 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 company’s
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.
BCG MATRIX
Cont…

 STAR:- COW:-
Play Station Walkman
LCD T.V

DOG:-
 QUESTION MARK:-
Video Cassettes
Mobile Phones
Camera
 SONY’S STOCK PRICES AGAINST NIKKEI 225 (2007-2011 )

INTERPRETATION :

In 2011, Sony’s 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.
 SONY’S 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 company’s equity value. The most recent return on equity ratio is
-13.67%, which echoes the pessimism by investors
 WHAT SONY’S 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 Sony’s 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.

 Sony’s 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_Bi
ggest_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

 
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