SONY CORPORATION
Yuki, Sylvia, Caitlin & Casey
Agenda
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Sony Commercial
History
Global Expansion
SWOT Analysis
Competitors
Industry Analysis
Recommendations
Conclusion
History of Sony
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Started in 1946 by Masaru Ibuka and Akio Morita in Japan
In December 1955 released Sony TR-72, a transistor radio
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Sony’s outstanding technology revolution in TV industry
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First step into the global market
1960 Sony introduced the first direct television in world, the TV8301
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
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Television introduced in each country.
History of Sony cont.
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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
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SWOT Analysis
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Strengths
 Strong
corporate brand identity
29th in top 100
 Soy’s brand value in 2009 at 11,953 million
 Umbrella brand strategy had the most success
 Ranked
 Sony’s
Corporation diversified geographic base
 Sony’s Research and Development abilities
SWOT Analysis cont.
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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.
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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.
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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
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First attempt of expansion in Hong Kong in 1959
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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
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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
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Global Expansion
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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
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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
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In 1986 California approved to change the tax system
Competitors
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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.
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Sharp Corporation
 Sharp
manufactures both LCD panels and LCD TVs
 Sharps AQUOS TV is it’s most significant product
 Comes
from “aqua” and “quality”, meaning image caused
by liquid crystal material flow
 Taiwan’s
Screen
 Discriminatory sales
Stock market Comparison
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Chart compares Sony(blue), Philips (green), and Sharp(red)
over the last 5 years. It Represents the stock value of each
company
Competitors cont.
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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
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History
 First
TV invented in 1924
 RCA launched worlds first black and white TV in 1939
and first color TV in 1953
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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.
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Global Issues
 Quality
problems: black screen, “vertical line”, “black
belt”
 High completion and low margin
Short Term Recommendations
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Advertising
 Advertise
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Wireless Technology
 Invest
in wireless technology
 Receiver
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more heavily
box all cord plug into
Lower Cost production
 Consumers
cant afford expensive electronics
 Inexpensive
 Produce
TVs
a TV at lower costs
Long Term Recommendations
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Out of big box store
 Don’t
sell in Best buy, or Wal-Mart
 Sells at lower prices
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Sony specialty stores
 Create
 Sell
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more specialty stores
only Sony products
Incorporate aspect of Microsoft
 Team
up with Microsoft aspects and incorporate into TV
designs
Conclusion
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Sony Commercial
History
Global Expansion
SWOT Analysis
Competitors
Industry Analysis
Recommendations