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

Sonys outstanding technology revolution in TV

industry

First step into the global market

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 Sonys 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

Soys brand value in 2009 at 11,953 million
Umbrella brand strategy had the most success

Sonys Corporation diversified geographic

base
Sonys Research and Development abilities

SWOT Analysis cont.

Weakness

Sonys plants located in inconvenient

locations
Too expensive and far away from
consumers
High shipping and long deliver process
This

all effects Sonys 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 TVs to American
Region

Focus on emerging markets economies

Sony

has gained success in India Market

Sonys growth depends on performance in
emerging markets

SWOT Analysis cont.

Threats

Unfavorable foreign exchange rate

Sonys

international market sales value 75.8%

Japans currency appreciated against US dollar
and Euro
Sonys products more expensive; sales to drop

Worsening economic situation

Sonys

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

1970Expanded into Cologne, Germany

Plant was shut down in 1961

Started with 25 employees
Sold through distributors, but sales were low
Sales rose once employees started selling televisions

Expansion into the US

1972TV manufacturing plant opened

Created plant because of high shipping costs
Plant was used to produce Trinitron color TV
Hired TV salesmen to sell TVs rather than distributors

Global Expansion

Anti-dumping lawsuit

Started in 1968 in the United States

Against all Japanese TV manufacturers for selling TVs
cheaper in US than Japan
1975Sony received official notice they werent under
investigation

Californias Unitary tax system

Tax system was based on entire corporations 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 hightechnology
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 its most significant
product
Comes

from aqua and quality, meaning

image caused by liquid crystal material flow

Taiwans

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

Dont 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