SONY CORPORATION

Yuki, Sylvia, Caitlin & Casey

Agenda

Sony Commercial History Global Expansion SWOT Analysis Competitors Industry Analysis Recommendations Conclusion

History of Sony

Started in 1946 by Masaru Ibuka and Akio Morita in Japan

In December 1955 released Sony TR-72, a transistor radio First step into the global market

Sony’s outstanding technology revolution in TV industry 1960 Sony introduced the first direct television in world,

the TV8-301 Introduced the smallest and lightest television in 1962

From 2008 – to March 31, 2009 decline in demand Current CEO, Howard Stringer was promoted in 2005

History of Sony cont

Television introduced in each country.

History of Sony cont.

2009 Sony bought BRAVIA LCD television 2009 Sony’s LCD market increased

From 12% in 2007 to 14% in 2009 Sold 107 million units in 2009 In 2009 the increase of sales were 43%

higher than 2008

SWOT Analysis

Strengths Strong corporate brand identity

Ranked 29th in top 100 Soy’s brand value in 2009 at 11,953 million Umbrella brand strategy had the most success

Sony’s Corporation diversified geographic base

Sony’s Research and Development abilities

SWOT Analysis cont.

Weakness Sony’s plants located in inconvenient

locations Too expensive and far away from

consumers High shipping and long deliver process

This all effects Sony’s operating performance

SWOT Analysis cont.

Opportunities Applied acquisition and alliances strategy

Joint venture with Sharp and Hon Hai Precision Industry

In order to provide LCD TV’s to American Region

Focus on emerging market’s economies Sony has gained success in India Market Sony’s growth depends on performance in

emerging markets

SWOT Analysis cont.

Threats Unfavorable foreign exchange rate

Sony’s international market sales value 75.8% Japan’s currency appreciated against US dollar

and Euro Sony’s products more expensive; sales to drop

Worsening economic situation Sony’s main markets are US, Japan, and Europe;

all suffered economic downturn Laws and regulations

Protect environment, human health, and safety

Global Expansion

First attempt of expansion in Hong Kong in 1959 Plant was shut down in 1961

1970—Expanded into Cologne, Germany Started with 25 employees Sold through distributors, but sales were low Sales rose once employees started selling televisions

Expansion into the US 1972—TV manufacturing plant opened Created plant because of high shipping costs Plant was used to produce Trinitron color TV Hired TV salesmen to sell TV’s rather than distributors

Global Expansion

Anti-dumping lawsuit Started in 1968 in the United States Against all Japanese TV manufacturers for selling TV’s

cheaper in US than Japan 1975—Sony received official notice they weren’t under

investigation California’s Unitary tax system

Tax system was based on entire corporation’s income Governments officials became involved Ronald Reagan asked states to change tax system International companies forced to close plants

In 1986 California approved to change the tax system

Competitors

Royal Philips Electronics Inc. Established in Netherland in 1891 Target high-end markets and high-

technology Philips TV experiments began in 1925 Withdrawal of LCD TVs in North America in

2008 Continue to sell, but rights owned by a

Japanese company until 2013

Competitors cont.

Sharp Corporation Sharp manufactures both LCD panels and

LCD TVs Sharps AQUOS TV is it’s most significant

productComes from “aqua” and “quality”, meaning

image caused by liquid crystal material flow Taiwan’s Screen Discriminatory sales

Stock market Comparison

Chart compares Sony(blue), Philips (green), and Sharp(red) over the last 5 years. It Represents the stock value of each company

Competitors cont.

Skyworth Group Co., Ltd Established in 1988 in China Largest TV brand in china From small to the top 10 TV brands Skyworth emphasizes LCD Black Light and

Internet TV

Industry Analysis

History First TV invented in 1924 RCA launched worlds first black and white

TV in 1939 and first color TV in 1953 Future Trends

Energy-conserving and environment–protective

Flat-panel TV: LCD TV (LCD backlight) Special technologies: Google TV, 3D LED “China Times”

Industry Analysis cont.

Global Issues Quality problems: black screen, “vertical

line”, “black belt” High completion and low margin

Short Term Recommendations Advertising

Advertise more heavily Wireless Technology

Invest in wireless technology Receiver box all cord plug into

Lower Cost production Consumers cant afford expensive

electronics Inexpensive TVs

Produce a TV at lower costs

Long Term Recommendations Out of big box store

Don’t sell in Best buy, or Wal-Mart Sells at lower prices

Sony specialty stores Create more specialty stores

Sell only Sony products Incorporate aspect of Microsoft

Team up with Microsoft aspects and incorporate into TV designs

Conclusion

Sony Commercial History Global Expansion SWOT Analysis Competitors Industry Analysis Recommendations