1. SONY CORPORATION
SLIDE 1
HISTORY OF SONY
● Akio Morita and Masaru Ibuka started ‘Tokyo Telecommunications Engineering’ on May 7, 1946
with its headquartered in Minato, Tokyo Japan.
● The company produced the Japanese first tape recorder in 1950.
● In 1952, Ibuka traveled to United States and heard about Bell Laboratory invention of the
transistor. He convinced Bell to license the transistor technology to his Japanese company. While
most American companies were researching the transistor for its military applications Ibuka and
Morita looked to apply it for communications.
● They launched one of the first transistor radios in 1955. Soon after they changed the company
name to ‘Sony’.
● In 1960, the Sony Corporation of America was established in the United States which was the
first Japanese company to be listed on the New York Stock Exchange.
SLIDE 2
PRODUCT PORTFOLIO
● Sony’s product portfolio includes TV&Home Cinema, Camera&Camcoders, VAIO&computing,
Reader e-book, home audio, portable audio, Playstation, Memory discs & batteries, headphones,
Accessory finder, Car Audio,
● Other Sony products include SonyCard, Sony Computer Entertainment, Sony Ericsson, Sony
Music, and Sony Pictures.
SLIDE 3
SONY BUSINESS OPERATIONS
LCD Televisions
● During 2009, Sony implemented measures in its LCD television business aimed at strengthening
operation and improving profitability, while at the same time focusing efforts on the development
of appealing products.
● Developed in collaboration with Google, Sony Internet TV is an exciting new generation of
television that not only offers new forms of enjoyment through unprecedented Internet
integration, but is also able to “evolve” through the download of applications.
● They are also developing the next generation of TV display while targeting a 20% market share
over a medium term.

2. DIGITAL IMAGING
● In the compact digital camera business, Sony’s efforts are to further increase operating efficiency
and heighten the appeal of its distinctive products.
● Sony released two new additions to the Cyber-shot family recently, TX7 and HX5V, with an
Exmor R image sensor, these are the first integrated lens digital cameras in the world with Full
HD.
HOME VIDEO
● Sales of Sony Blu-ray Disc players in 2009 amounted to 3.3 million units, a year-on-year increase
of 1.1 million units.
SLIDE 4
DIGITAL MUSIC PLAYER
● In the Japanese market, Sony took the number one share in units shipped for the first time in four
years and eight months.This achievement reflected customer appreciation of the excellent sound
quality and user-friendly digital music players, as well as consumer acceptance of its diverse
product lineup including the hit Walkman® S series with stand-alone speakers, and the new
Walkman® W series, which is a one-piece music player with built-in headphones,
PCs
● In April 2010, Sony implemented organizational changes within its PC business in order to
strengthen operations.
● The VAIO Business Group, which is responsible for the headquarters functions of the PC
business, was moved to the site of Sony EMCS Corporation Nagano TEC, which already hosts
PC design, operations and manufacturing. With this move, everything from PC product planning
to manufacturing occurs in one place, leading to strengthened collaboration and a more efficient
structure that will support efforts to accelerate business growth.

3. SLIDE 5
GAME
● In 2009, Sony launched a new slimmer, attractively priced PlayStation®3 (PS3™) computer
entertainment system in markets around the world.
● Sony will work to further expand its lineup of packaged software for the PSP™ platform, as well
as aggressively develop network services and content, thereby enhancing the distinctive
entertainment experience PSP provides.
SONY ERICSON
● Guided by new president Bert Nordberg, Sony Ericsson commenced shipments of Xperia™ X10,
its first Android-powered communications entertainment device featuring such signature
applications as Timescape™ and Mediascape as well as Vivaz™, a beautifully designed touch
screen Symbian phone. Both Xperia X10 and Vivaz have enjoyed a positive reception from
customers around the world.
● Sony Ericsson’s focus will continue to be on returning to profitability on an annual basis, through
continued transformation of its product portfolio to target mid- to high-end open operating system
based models and by providing the consumer a superior user experience.
SLIDE 6
SONY PICTURES
● Sony Pictures Entertainment continues to be a leader in the development, production and
distribution of motion pictures, television programming and online entertainment globally.
● One of the most exciting opportunities for content development and growth across the
entertainment industry is 3D. Sony Pictures is uniquely positioned as part of the Sony Group to
succeed in this exciting area. The studio has an established track record in 3D production, 3D
visual effects and motion picture releasing.
SONY PICTURES TELEVISION
● Sony Pictures Television (SPT) had a successful year expanding its portfolio of leading
international channels and continuing a strong U.S. programming lineup.

4. SLIDE 7
SONY MUSIC
● Sony’s music business consists of Sony Music Entertainment (SME), which operates worldwide
outside of Japan, and Sony Music Entertainment (Japan) Inc. (SMEJ)
● SME’s continuing dedication to great artistry also yielded strong sales from Beyoncé, the Glee
franchise, Whitney Houston, Ke$ha, Alicia Keys, Kings of Leon, Leona Lewis, Maxwell, P!nk,
Sade and Carrie Underwood.
SLIDE 8
Sony Corporation Overview
● Sony corporation is a multi-billion company that is based in Tokyo, Japan.
● It is mostly involved in manufacturing of electronics, video, communications, video game
consoles and information technology products for the consumer and professional markets.
● Moreover, this corporation has been involved in consumer electronics since the end of the world
war 2, with their vast experienced and their involvement in the market has developed the
company into one of the world's biggest and richest companies.
SLIDE 9
Sony Electronics Inc.
● One of the biggest subsidiaries of Sony Corporation of America, due to its role as US
Sony based electronics and entertainment involvement.
● The Sony Electronics headquarters is based in San Diego.
● In Europe, Sony's consumer electronics products and services are marketed through 19
sales subsidiaries including Sony United Kingdom Limited, Sony Deutschland, and Sony
France. Sales of professional electronics products, electronic components, and services
are made through several divisions, differentiated by product, covering all of Europe.
● Sony is engaged in the development, design, manufacture, and sale of various kinds of
electronic equipment, instruments, and devices for consumer and professional markets in
the "Electronics" business.

5. SLIDE 10
Manufacturing
● Their principal manufacturing facilities are located in Japan, the U.S. Mexico, Europe,
and many Asia countries.
● Sony are integrated manufacturers in that they have developed the skills and capabilities
that inclined to do everything in-house, from their design of the device to the fabrication
of integrated circuits.
● To relieve pressure on their manufacturing capacity, they have also often subcontracted
some of their manufacturing work to the electronic contract manufacturers (ECMs) while
retaining control over the bulk of the manufacturing and distribution work.
SLIDE 11
MISSION
● Japanese electronics giant, Sony, has changed its mission statement several times in its history.
Previously, Sony's mission statement was, "Become the company most known for changing the
world-wide poor-quality image of Japanese products."
● According to the 2009 annual report, their mission statement is “To become a leading global
provider of networked consumer electronics, entertainment and services.” Their mission is not
published in 2010’s annual report.
VISION
● Their vision is about innovation, welcome new thinking and new ideas.
● Their campaign of “make. believe” reflects Sony’s ability to turn ideas into reality and, more
importantly, to help consumers turn their own ideas into reality—as we believe that anything you
can imagine, you can make real.
● Sony aims to inspire consumers around the world with innovation and fun through their unique
combination of technology and entertainment based on their electronics, game, motion picture,
music, mobile phone and network services businesses.
SLIDE 12

6. CORE COMPETENCIES
● TBC
SLIDE 13
FINANCIAL OVERVIEW
● Operating income of ¥31.8 billion was achieved, compared to an operating loss in the previous
fiscal year.
● The Financial Services segment and the Consumer Products & Devices segment—in particular,
LCD televisions—contributed to the improvement in operating results year-on-year.
● Cash flow from operating and investing activities combined was positive and exceeded
¥300billion excluding the Financial Services segment’s activities
SLIDE 14
● Sales and operating revenue falls from 8.9 trillion to 7.7 from 2008 to 2009. and 7.2 in 2010.
● The operating income for 2008 was 475.3 billion yen but in 2009 there was a loss 227.8 million
yen.
● Even though in 2010, the sales was lower than 2009, there was an operating income of 213.4
million yen. This was done through reducing headcount and closing or consolidating 11
manufacturing sites worldwide. They have a target of cost reduction of 330 billion yen group
wide and they achieved and beat the target. They reduce their procurement cost by 20% which is
nearly 500 billion yen.
SLIDE 15

7. ● This graph shows that they have positive cash flow from operating activities in 2008, 2009 and
2010.But negative cash flow from investing activities. They have invested huge amount of money
on capital investment in 2008 and 2009.
● According to annual report 2010, the improvement in cash flow is because, they aggressively
managed their inventory and account receivable and payable.
SLIDE 16
SONY’S PORTER’S 5 FORCES
● Michael Porter five forces are power of supplier, power of buyer, threat from substitute product
and lastly threat of entry by new competitors.
● For Sony the bargaining power of supply is low. Sony respects each supplier as an independent
company working on an equal basis with Sony. Sony makes itself fully accessible to suppliers
that can function as true partners by working together in building relationships based on mutual
trust. The price of parts and materials provided by suppliers has a major impact on the cost
competitiveness of Sony products. Sony therefore expects its suppliers to offer items at highly
competitive prices and make a concerted effort to constantly reduce cost.
● Buyer power is one of the two horizontal forces that influence the appropriation of the value
created by an industry (refer to the diagram). The most important determinants of buyer power
are the size and the concentration of customers. Other factors are the extent to which the buyers
are informed and the concentration or differentiation of the competitors. Research shows that it is
often useful to distinguish potential buyer power from the buyer's willingness or incentive to use
that power, willingness that derives mainly from the “risk of failure” associated with a product's
use.
● For Sony. The bargaining power of buyer is high where Sony produce the product that meet
customers requirement. Besides that, by introducing innovative product like eco-friendly
projector makes the consumer to stay with Sony.
● The threat of new entrants pose to an industry's profitability depends on the relative price-to-
performance ratios of the different types of products or services to which customers can turn to
satisfy the same basic need.
● For Sony threat of new entrants is low is because it is a well establish firm and consumers trust
their product since they have been using it for a long period of time.To be safe Sony have
strategic assets such as knowledge or core competences, gained through research or experiences,
which newer entrants can struggle to match. Other than that, established company like Sony have
strong relationship with their distributors, so it is difficult for new entrants to find place to sell
their products.
● Next we will look at the threat of substitute product or services. Buyer power is strongly
influenced by the availability of substitute products. If customers have a choice, not just between
rival products but between competing demands for their spending, then this will increase their

8. power. It is obvious that, substitute products are not the same as competitor’s product, is just
because they are made in another industry.
● For Sony, threat of substitute product is low because they are highly competitive and very
innovative.
● Lastly, the competitive rivalry between the firms in the industry is strongly affected by the other
five forces. The stronger the power of buyers, suppliers, and complementors, and the stronger the
threats of new entry and substitutions, the more intense competition is likely to be.
● For Sony rivalry is high. Firms will compete away (in form of price wars or other undercutting
moves) much of the profit that might have been extracted from the industry.
SLIDE 17
INTERNAL CAPABILITIES
Standardized Product
● The reason Sony uses standardized products is because they can reduce on cost. Besides
that,it would be easier for Sony to improve the quality and to meet customer’s
expectations by spending more on R&D and to be more innovative. At the same time, to
cover global customer so that everyone can enjoy a quality and an innovative product in
any part of the world. By standardizing the product Sony also could reach the global
market segment easily by covering consumer globally.
Centralized Control
● Sony practices centralized control from its HQ in Minato, Tokyo .This is to make sure
that product are not overpriced in certain place. If there are any changes it is done at the
same time.
Focus on efficiency
● Sony focuses on efficiency to increase the business and by increasing the business it will
give their share holder confident to invest with them. Besides that, it also creates trust
among the existing and future customers. Besides that, by being efficient Sony could
improve on competitive advantage where Sony could compete with their competitors like
Panasonic easily. Other than that, to maintain customer service level, in order to solve
customer’s problem fast.
Youth Market

9. ● It can be said that Sony captured the youth market by innovating more entertaining
products.
● Sony is one of the most comprehensive entertainment companies in the world. For
example, PlayStation was introduces in 1994 and become the most successful video game
console all the time. With a high demand Sony introduced PSP (Play Station Portable) in
2005 and 2009 where most youngsters are interested in it.
SLIDE 18
EXTERNAL RELATIONSHIPS
SLIDE 19
COMPETITIVE ADVANTAGE (Most current)
● Sony is the first to produce green TV’s and started selling in Japan on 30th July 2008.
● Sony’s green TV , a new flat panel 32 inch ($1400), offers ecological consumer advantages of
less energy consumption (70%) than regular models with same image quality. Sony was able to
reduce carbon dioxide emissions totalling 79kg a year, without sacrificing quality by developing
a brighter back light and better filtering, which produces light more efficiently.
● The TV will have crystal displays along with high definition digital broadcast capabilities.
● Other eco-products to be more competitive advantage are laptop, projector, mobile phones and
rechargeable batteries.
SLIDE 20
SONY PEST ANALYSIS
Source: Kasim, Axel, and Maqsood
Political

10. ● Political factors for Sony Corporation are volatile as the Japanese government holds the power to
change any policies and regulations which may affect Sony.
● The credit crunch and the recession may become reduced, therefore resulting in better trades for
Sony Corporation. However this also means that the same has occurred for Sony’s competitors,
forcing Sony to develop ideas on how to stay ahead of its competitors.
● The laws which can affect Sony Corporation would consist of new international policies.
Internationally the Government may change or increase trading restrictions which
would definitely change the way Sony works, because it needs to trade.
● The Government also has the power to change minimum wage, tax, VAT etc. These
factors must be concentrated on so that Sony is prepared for any major global
changes.
Economical
● The current state of the Japanese economy is not exactly healthy. The economic
growth has shrunk which means that the growth of the economy is negative. The
recession and the credit crunch has had significant affects on interest and
exchanges rates.
● Due to the recession being deducted in the near future, exchange rates may steadily decrease..
Sony must be aware of any trading restrictions the Government has made.
● Since Sony is an international company the exchange rates can be different to whichever country
they trade with. If the exchange rates in different countries have changed, Sony would need
to work out what prices are their products being sold at and whether it would be
worth it.
SLIDE 21
Social
● The company has already gained a lot of reputation because of the quality products and services
they provide that cater to all types of demographics - from the young and trendy to the old and
sophisticated.
● Sony may even have new competitors which may impact on them. Sony must ensure that they
stay ahead of technology.
● They must be able to create revolutionary equipment for people because that’s what their
company would rely on to stay alive especially since companies such as Microsoft and Apple
would be doing the same.

11. Technological
● Sony Corporation works around the use of technology every day. It depends on technology so
that it may provide efficient productivity of work internationally.
● Sony would use upgraded and new technology to increase its productivity level and to stay ahead
of its competitors.
● Sony would need to use new technology to conduct its research and development which would
help the business create new products using customer information and also by conducting market
research.
SLIDE 22
SONY PEST ANALYSIS BENEFITS
● Sony Corporation would use these factors to monitor the external factors of the business. PEST
can be useful towards Sony Corporation because it can be used to identify any new legislation,
trading restrictions, VAT, tax laws, social trends, technological improvements etc.
● PEST can also be used as a marketing technique towards Sony business Sony marketers would
want to know how well the business is running. By using PEST Sony marketers can develop new
strategies to help develop the business overall. They could do this by advertising new products or
advertising the company and its components.
● The company is able to predict what their future business environment will be using political,
environmental, technological and social factors.
SLIDE 23
SONY SWOT ANALYSIS (FOCUSED)
Strengths
● Able to create high quality products suited for customers shifts in trends.
● Engineers are good learners.
● High levels of competition towards other brands.
● Flexible and able enough to suit any market of any size.
Weaknesses
● Has been making losses with sales starting to slow down.

12. ● Company has lack of direction under current management.
● Functional department lack any effective communication channels in turn decreasing
productivity.
Opportunities
● Increase in engineer talent so improve productivity.
● More product differentiation strategies to win back brand reputation.
● Advertising budgets increased to attract new customers.
● Attempting to sell their high quality products cheaper especially in new markets.
Threats
● Sony’s competitors have become to powerful, e.g. Microsoft.
● A lot of their products are forged and sold as fakes, inflicting dangerous levels of damage to
brand image and loyalty.
● Lack of direction has given competitors ample time to pull away.
● Competitor’s products are reaching more demographics than Sony’s.
SLIDE 24
SONY SWOT ANALYSIS (WIDE)
Source: Datamonitor (2010)
Strengths
● Strong Corporate Brand Identity
● Diversified geographic Base
● Focus on Research and Development
Weaknesses
● High Cost manufacturing base
● Unfunded employee post retirement benefits
Opportunities

13. ● Growing global consumer and industrial electronics market
● Strategic acquisitions and alliances
● Focus on BRIC (Brazil, Russia, India, China) economies
Threats
● Unfavorable foreign exchange rates
● Economic conditions
● Government regulations
SLIDE 25
SONY CONTROVERSIES
Controversial promotions
● In July 2006, Sony released a Dutch advertising campaign featuring a white model dressed
entirely in white and a black model garbed in black. The first ad featured the white model
clutching the face of the black model. The words "White is coming" headlined one of the ads.
The ad has been viewed as racist by critics A Sony spokesperson responded that the ad does not
have a racist message, saying that it was only trying to depict the contrast between the black PSP
model and the new ceramic white PSP. Other pictures of the ad campaign include the black
model overpowering the white model.
Digital Rights Management
● In August 2007, security firm F-Secure reported that the MicroVault USB thumb drive installs a
rootkit in a hidden directory without consent on user computers. The directory is intended to
protect fingerprint data, however it can be used for malicious means as most virus scanners will
not search for the directory or its contents. Sony advised it was conducting an investigation on the
third-party product, and would offer a fix by mid-September.
NGO Strategy
● In 2000, Sony was ridiculed for a document entitled "NGO Strategy" that was leaked to the press.
The document involved the company's surveillance of environmental activists in an attempt to
plan how to counter their movements.
● It specifically mentioned environmental groups that were trying to pass laws that held electronics-
producing companies responsible for the clean up of the toxic chemicals contained in their
merchandise. I

14. ● n early July 2007, Sony ranked 14th on the Greenpeace chart "Guide to Greener Electronics."
This chart graded major electronics companies on their environmental work. Sony fell from its
earlier 11th place ranking due to Greenpeace's claims that Sony had double standards in their
waste policies.
Government Links
● In 2005, it was made public that the videogame ‘Full Spectrum Warrior’, developed by Sony
Pictures Imageworks and Pandemic Studios, was paid for in whole by the United States
Department of Defense, for use as an urban combat trainer.
● Not only was the simulation never used as intended, but the Army lost its full investment while
Pandemic Studios went on to release the simulation, now an entertainment game, through THQ
and it became a success.
SLIDE 26
ENVIRONMENTAL RECORD
● In October 2010, Sony was ranked 6th (jointly with Panasonic and Motorola) in Greenpeace’s
Guide to Greener Electronics that assesses the policies on toxic chemicals, recycling and climate
change of 18 leading electronics manufacturers. Number of Sony’s models on the market are
partially free of PVC and BFRs, including all models of the VAIO PC, and many models of video
recorder, Walkman, camcorder and digital camera.
● The company has committed to removing PVC in all new models of mobile products (excluding
accessories), and BFRs in the casing and main PWBs of all new models of mobile products by
April 2011. However for the improvement in its ranking it still needs to set a timeline for
eliminating all phthalates, beryllium copper and antimony and its compounds
● Sony publishes on its website a list of products, for which the company had (as of February 2010)
or intended to replace PVC and BFR with alternative substances by the end of FY 2010 (April
2011), nevertheless as of January 2011 the list does not identify which products are fulfilling
these criteria at the moment.
SLIDE 27
Improvement efforts

15. ● Since 1976, Sony has had an Environmental Conference. Sony's policies address their effects on
global warming, the environment, and resources.
● They are taking steps to reduce the amount of greenhouse gases that they put out as well as
regulating the products they get from their suppliers in a process that they call "green
procurement".
● Sony has said that they have signed on to have about 75 percent of their Sony Building running
on geothermal power.
● The "Sony Take Back Recycling Program" allows consumers to recycle the electronics products
that they buy from Sony by taking them to eCycle (Recycling) drop-off points around the U.S.
● The company has also developed a biobattery that runs on sugars and carbohydrates that works
similarly to the way living creatures work. This is the most powerful small biobattery to date.
SLIDE 28
RECOMMENDATIONS
● In order to be competitive Sony can go through their product price and give out discount for loyal
customers in order to repeat purchase. Besides that, Sony also can also compete through
expensive advertisement and by having aggressive promotions.
● People have trends which Sony must learn so that they may create products which can relate
towards them. For example, many young adults tend to listen to music; therefore
Sony would create products which may allow people to listen to music anywhere
at any time.
● People will have different tastes of style, trends, activities etc. Sony
must also improve their work of ideas so that they can still please their
customers and that they have adapted with the ageing of the company.