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SYMBASCAPE - SONYMBA EX (2013-15) ABHISHEK RANJAN (36402)ANIRUDDHA LOKRE (36404)MANISH HIRVE (36416)NILESH GOKHALE (36420)SARVESH KOLHATKAR (36429)
Brief History
The Origins of the SONY Brand:The Sony name was created by combining "SONUS," the original Latin for "SONIC," meaning sound, with "SONNY," denoting small size, or a youthful boy. It was chosen for its simple pronunciation that is the same in any language.
In May’46, Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation), also known as Totsuko, established in Nihonbashi, with start-up capital of 1,90,000 Yen for the research and manufacture of telecommunications and measuring equipment.
In Oct’47 Successful commercialization and sales launch of Sony's “power megaphone.” First Product. In Mar’50, Japan's first magnetite-coated, paper-based recording tape, “Soni-Tape” launched. In 1955, Decision made to use SONY logo on Totsuko products & listed over Tokyo Stock Exchange (TSE). In 1958, Company name changed to Sony Corporation & Sony listed on the TSE. In 1960, World's first direct-view portable TV, Started operations in America In 1961, Sony became the first Japanese company to offer shares in the United States in the form of American Depositary Receipts
(ADRs) on the OTC market of the New York Stock Exchange. From 1962-1982, Expansion it’s operations in UK, Switzerland, Spain, France & various countries' & launched Varity of products such as
cassette recorder, VCR, Walkman, TV’s, CD player etc. Between 1983-1987, High definition video system (HDVS), Portable CD player, Camcorder, launched. In 19688, CBS Records Inc., the records group of CBS, acquired. It was renamed Sony Music Entertainment Inc. in January 1991. In 1994-95, Established It’s India operations, “Digital Handycam”, first consumer-use digital video camcorder is, launched.
Brief History (Continued..)
In 1996- 2000, Chine operations started, launched products such as “Cybershot”, Home-use PC “VAIO” series, personal IT television “Airboard” In Apr’2001, Sony Bank established in Japan. In 2003, Sales launch of the world's first next-generation high capacity optical disc “Blu-ray Disc” recorder. In 2005, Sales launch of new “BRAVIA” brand HDTV-compatible flat-screen TVs. In 2006, Sony and Samsung reach agreement on manufacturing 8th generation amorphous TFT LCD panels at their joint venture, S-LCD
Corporation. In 2007, Sony relocates headquarters to new building called "Sony City." , World's first OLED TV released. In 2009, HDR-XR520V and HDR-500V Handycam---World's first camcorder with new back-illuminated CMOS image sensor --- released, Sony
Group unveils new brand message "make. believe“ In 2010,
Sony opens “Sony 3D Technology Center,” located at Sony Pictures Studios in Culver City, California. Sony introduces Sony Internet TV, powered by Google TV —he world's first television with Google TV platform. Sony introduces Sony Internet TV, powered by Google TV —he world's first television with Google TV platform. Sony launches new digital music service---"Music Unlimited powered by Qriocity™“
In 2011-14, Started facing tough competition & also made losses in some business. In 2014, Sony sells off PC business. Now Sony is coming up with New company for Visual products as SONY VISUAL PRODUCTS.
Executive Summery
Market Drivers
Restraints
• 70%+ of total electronics spending is linked to consumers including many systems classified as IT, Communications, and other sectors.
• High-capability, interlinked devices driving their segments • Phones, tablets, notebooks, automotive infotainment and networking, wireless industrial and medical • Drive revenue, profit, and systems innovation
• Consoles Offer an Unparalleled Gaming Experience Compared to Other Competing Devices Such as Tablets and Even Smart TVs
• The Expanding Set of Features for Media Playback, Especially, Streaming Content, Access to Live TV, and Cloud Gaming Services Provide Momentum to this Market.
• Online Subscription Based Services Offered by all Three Leading Vendors who offer New Games or Multiplayer Games on a Continuous Basis May Further Drive Consumers to Hold on to their Current Generation Consoles.
• The key market participants are shifting focus to BRIC countries and emerging markets such as Africa, Indonesia, Egypt, and so on.
• • Multi-sphere convergence is driving the market toward technological evolution
• Competition from Competing Devices and Online Gaming Services Discourages Consumers from Spending on Expensive Gaming Consoles.
• Pricing Continues to be a Challenge for Manufacturers as well as Consumers.• Lack of License to Content in Different Countries can be a Deterrent to Growth, as Consumers Increasingly
Use Gaming Consoles for Media Playback Purposes
Worldwide
Executive Summery – Key business Issues
Reform of electronics business structure. Comprehensive transformational initiatives - implementation in core business. New technology development and measures for new business creation
leading to growth. Reform business structure and consolidate operating profit. Sony’s main strategic problem lies in its numerous product lines that serve
too many parts of the entertainment value chain. The “empire ” strategy not only caused the company’s innovation and
operation to slow down, but also impaired their competitiveness in all of the market segments they are engaged in .
FUTURE
By 2050 autonomous humanoid would be built which will win against human world champion under the official regulation of FIFA
Company Overview
IntroductionSony founded on May 7th 1946 In Tokyo, Japan. Revenue of 7.99T Yen.Sony Corporation, Sony Pictures Entertainment Sony Computer Entertainment, Sony BMG Music Entertainment, Sony Mobile communications Sony Financial Holdings.
Institutional shareholders
Share of Sony's sales by segment in the 2013 and 2014 fiscal year
Mobile Products & Communications
Financial Services
Home Entertainment & Sound
Pictures
Imaging Products & Solutions
Devices
Game
Music
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
21.34%
13.01%
15.3%
10.85%
9.7%
7.71%
12.82%
6.59%
Share of sales
Sony's revenue worldwide by segment fiscal years 2012 to 2014 (in billion U.S. dollars)
2012 2013 20140
2
4
6
8
10
12
14
16
18
5.85
13.38
15.83
8.2
10.72
9.65
12.06
10.5811.35
6.18
7.8 8.057.16
7.777.2
9.659.03
7.717.57 7.52
9.51
4.164.7 4.89
Mobile Products & Communications Financial ServicesHome Entertainment & Sound PicturesImaging Products & Solutions DevicesGame Music
Rev
enue
in b
illion
U.S
. dol
lars
2012 2013 20140
10
20
30
40
50
60
70
80
5.85
13.3815.83
8.2
10.72 9.6512.06
10.5811.35
6.18
7.88.05
7.16
7.777.2
9.65
9.03 7.717.57
7.529.51
4.16
4.74.89
Mobile Products & Communications Financial Services
Home Entertainment & Sound Pictures
Imaging Products & Solutions Devices
Game Music
Rev
enue
in b
illion
U.S
. dol
lars
Example: Gaming
Market Share Unit sales
PEER Analysis(currency JPY)
Serious problems faced by SONY
On the 26th April 2011, SONY announced that personal information had been compromised on their Internet service delivery networks, the 'PlayStation Network (PSN)'as well as image and music distribution service 'Qriocity'.
A total number of 77 million users had their personal information such as user name, ID and online password stolen.
On 2nd May 2011, a second security breach happened with Other network (SOE), and the compromised figure of data loss hit 24.6 million users, of which 12.3 million had their credit card information stolen.
Shortly after, a third incident involving the loss of 2,500 users' names and addresses took place, with the source of the leakage coming from the electronics arm of SONY.
Three security breaches in short time, collectively amounted to an unprecedented figure of more than 100 million users having had their personal information stolen. A world record of sorts in the history of data loss incidents.
What went Wrong
Sony failed to ride some of the biggest waves of technological innovation in recent decades: digitalization, a shift toward software and the importance of the Internet.
Every sphere where the company competed from hardware to software to communications to content, was turned topsy-turvy by disruptive new technology and unforeseen rivals.
With its catalog of music and foundation in electronics, Sony had the tools to create a version of the iPod long before Apple introduced it in 2001.
Lower-cost manufacturers from South Korea, China and elsewhere, meanwhile, are increasingly undercutting Sony.
Sony’s recent leaders have had trouble using authority over the sprawling company. Sony remains dominated by proud, territorial engineers who often shun cooperation. For
many of them, cost-cutting is the enemy of creativity — a legacy of Sony’s co-founders, Mr. Morita and Masaru Ibuka, who tried to foster a culture of independence.
What went wrong continued……
The company still makes a confusing catalog of gadgets that overlap or even cannibalize one another.
Sony makes too many models, and for none of them can they say, ‘This contains our best, most cutting-edge technology, Apple, on the other hand, makes one amazing phone in just two colors and says, ‘This is the best’.
Financial Perspective
Strategic goalsObjectives Measures Target InitiativeImprove cost structure
Actual cost Reduced By 3 bn
Reduce the component suppliers.
Revenue Growth
Sales Volume Regain lost sales revenue
Expand the market for the core products .
Performance Scorecard
Customer Perspective
Strategic goalsObjectives Measures Target InitiativeProvide quality products
Enhanced software and hardware
Advanced speed, Battery life, Create more applications
Engineer more efficient methodologies
Customer Service
Customer satisfaction survey
90% Customer satisfaction
Employ more customer support staff to improve response time.
Internal Process Perspective
Strategic goalsObjectives Measures Target InitiativeContinue developing unique innovative products
Products in industry
Develop a new product every year.
Release a new product version with upgraded software.
Environment Friendly
Green house gas elimination from the factory and power consumption
Reduce 30 % Consumption
Reduce Electricity use and use another sources to power the factory.
Learning and growth
Strategic goalsObjectives
Measures Target Initiative
Optimization of Employee resources
Employees hired to output ratio
Decrease labour cost by 5% but maintain o/p
Better train employees to perform more.
Nurturing engineering and management talent
Number of employees that rose through the sony carrier chain
95% of top management and Eng team
MVP and other acknowledgement awards
Sony Corporation
Vison and Mission
SWOT
SWOT
Strengths• Strong corporate brand identity.• Successful Umbrella brand strategy.• Diversified geographic base.• Research and Development abilities in
sync with future trends• Valuable physical assets, good intangible
assets, and low production costs in general
• Innovation quality and distribution network..
Weaknesses• Sony has weak financial sheets(low
sales, losses in the past) • Weak marketing • narrow product line.• Weak in price competition.• Overconfident
Opportunities• Path breaking devices, gadgets,
electronics gaming, appliances.• Untapped emerging market penetration .• Network initiatives• Image sensing and growth drivers
bolstering such as music, pictures
Threats• Strong competition, losses to company• Commoditization's for mobiles, devices• Price and differentiation wars loosing
edge• Other high quality replacements with
innovations.
SWOT For LG Electronics
SWOT
Strengths1. Wide range of products to serve all categories and a strong focus on technology and quality2. Effective localization of product offerings for growth markets like India, Brazil, China3. Brand offers sound rational appeal – good product features and good value for money4. Good after sales service and wide distribution network5. Subsidiaries enjoy independence in decision making and hence have flexibility in adapting to the local market6. Sponsorship of sports and entertainment events enhances visibility.
Weaknesses1. Brand lacks influence in the opinionated segment of early adopters especially in the social media environment2. Brand has limited market share compared to market leaders
Opportunities1. Fast growth of home appliances, electronics goods market in emerging economies2. Convert improved brand image and awareness in to market share3. Increase the already Wide product portfolio
Threats1. Price war with close Korean competitors like Samsung can disrupt growth in price sensitive markets2. Highly competitive industry dynamics3. Stagnant urban demand4. Instances of false green claims can erode brand value and consumer trust
Financial Targets
FY 14
Financial Targets
FY 14
Financial Performance Indices
Capital Market Indicators
Capital Market Indicators
Strategic Alliance Strategy
Outsourcing alliance Distribution alliance Supplier alliancesThese can be considered as strategic alliances within rivals Example Sony Group will extend their alliance with Toshiba to manufacture high-performance LSI by using 45-nanometer bulk process technology Cutting-edge semiconductors are core devices for the PlayStation platforms.Regarding image sensors, Sony established Sony Semiconductor Yamagata Technology Center as a new manufacturing hub, using the semiconductor manufacturing facilities at Tsuruoka plant.
Key strategic choices
Significant reduction of panel procurement costs, and the reduction of fixed costs related to design and R&D.
Accelerated shift to high value-added models Business management that emphasizes profitability, without necessarily pursuing volume Business management that grants each business unit greater autonomy and mandates a
focus on shareholder value Clearly defined positioning of each business within a broader business portfolio perspective Particular emphasis on profitability over volume, securing business unit autonomy with a
focus on shareholder value and providing a clearer definition of each business unit's position within Sony's overall business.
Business Reform Strategy
Withdraw from PC business
Reduce cost in headquarters and support
functions by 30%
Split out TV business
Reduce cost in sales companies by
20%
Business restructure
Strategy Recommendations/Observations
Sony is positioning Devices, Game, Pictures, and Music as the segments that will drive its profit growth.
Implement growth measures and engage in aggressive capital investment in areas such as Devices, Game & Network Services, Pictures, and Music with the aim of achieving both sales growth and profit expansion.
In Devices, Sony needs to further bolster its competitive edge in the area of CMOS image sensors by investing to increase production capacity and enhance R&D.
As businesses capable of contributing stable profit, Sony will prioritize the generation of steady profit and positive cash flow for Imaging Products & Solutions and Video & Sound.
Strategy Recommendations/Observations
Target certain areas within each market that are unlikely to experience commoditization by continuing to offer new, high value-added products.
Capitalize on its existing technological expertise rather than engaging in large-scale investments, and optimize fixed costs inventory control.
Place highest priority on curtailing risk and securing profits in its operation of TV &mobile communication businesses. Since both markets are experiencing intense cost competition and commoditization, strive to further increase the added value of its products by leveraging its in-house technologies.
Last and more important carefully select the territories and product areas it targets, seek to limit its capital investment and establish a business structure capable of securing stable profits.
Thank You