Business in New Asia
Prof. Wiboon
Meijuan Xu
overview of Contents
• Brief environmental analysis of the company’s current situation
• Brief explanation of the decision(s) facing them
• Brief recommendation of what they should do
Overview of company
• COMPANY: Sony, a company founded in 1946 with one of the most famous global brand names.
• SONY’S DNA: A distinctive will and drive to generate new value
• MAIN BUSINESSES: Sony operates primarily as a consumer electronics firm. For many years Sony dominated the consumer electronics market: from Sony Walkman to its Trinitron TVs, Sony innovations in the consumer electronics space were unparalleled. It was organized around three largest business divisions: electronics, entertainment, and financial services.
• EMPLOYEES: Sony in 2013 was an enormously complex company employing 146,000 employees.
• PERFORMANCE: Due to its complexity of the corporate structure, fell from market dominance, and loss of focus, Sony’s financial and operating performance are both not satisfying. Now Sony is losing money in its consumer electronics business and is having bottom-line success in its entertainment business.
Situational Analysis
Situational
Analysis
Sony consumer
Electronics
Sony
Entertainment
Internal Analysis
• Global brand name Strong financial support from banks
• Poor financial performance Lost dominance
• Profitable
Great leadership under Michael
Lynton
• Isolation management from its parent company External Analysis
• Emerging countries • Competition
Demand decreasing
Mobile business far behind Apple and
Samsung
• Expansion overseas • Competitors
Financial Analysis
Sony’s three large business divisions:
Electronics
Entertainment
Financial services
Profitable
businesses:
Financial Services
Music
Pictures
Devices
*All electronics segments are declining (too BAD)
Comparison of Sce and
SPE
=> Electronics Segment lost money in four years and had almost no profit in two other years due to
References: Inkpen, Andrew. "Sony Corporation –is the Sum Greater than the Parts." Thunderbird School of Global Management Harrison, Denise. "Sony | Simplified Strategic Planning Blog." Simplified Strategic Planning Blog RSS. N.p., 7 Nov. 2014. Web. 9 Nov. 2014. "Sony Corporation Global Headquarters." Sony Global. N.p., Web. 8 Nov. 2014.