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SONY

SONY. C O R P O R A T I O N. Berrak Dogruer Mazen Ferzly Hiep Nguyen Douglas Roach Rafik Ward. A G E N D A . Company History Founder : Akio Morita Corporate Policy Strategy & Organization Current Initiatives. Company History. 1946 - Tokyo Telecom Engineering

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SONY

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  1. SONY C O R P O R A T I O N Berrak Dogruer Mazen Ferzly Hiep Nguyen Douglas Roach Rafik Ward

  2. A G E N D A • Company History • Founder : Akio Morita • Corporate Policy • Strategy & Organization • Current Initiatives

  3. Company History • 1946 - Tokyo Telecom Engineering • 1950 - First Japanese tape recorder • 1955 - First transistor radios • 1957 - First pocket-sized radio • 1958 - Name change to Sony • (from "sonus," Latin for "sound," and "sonny," meaning “little man”) • 1968 - Intro of Trinitron color TV – explosive growth • 1979 - Walkman personal stereo

  4. Company History • 1980’s - Major Producer of computer disks/ floppies • 1988 - Bought CBS Records for $2 billion. • 1989 - Bought Columbia Pictures for $4.5 billion. • 1994 - Sony Playstation released to great success. • 1997 - JV with Philips (inventors of the CD) to make Super Audio CD • 1998 - Launched Wega flat-screen TV • 1999 - JV with Philips, Sun Microsystems to develop networked entertainment products • 1999 - Walkman with MP3 capabilities

  5. Company History • 2000 - Formed PlayStation.com – games/software online • 2000 - Restructured all entertainment units under Sony Broadband Entertainment • 2001 - JV Sakura Bank and JP Morgan Chase for online bank.

  6. Founder: Akio Morita • Groomed to take over 14-generation family Sake business • Strong entrepreneurial spirit: Tokyo Telecom Engineering • Revolutionary thinking: Brand is lifeblood of company success • Listed Sony on NYSE in 1970. • 1966 “Never Mind School” emphasize the capabilities of individuals, rather than their prior academic background and history – a revolutionary concept for Japan. • Strong belief R&D leads to new ways to meet customer needs. • Co-chair of various conferences, including the Japan-U.S Business Council, The Trilateral Commission, and the World Economic Forum in Davos.

  7. Founder: Akio Morita • Instrumental in easing trade friction with the U.S by playing leading roles in the Keidanren (Japan Federation of Economic Organizations), the Japan-U.S. Economic Relations Group. • 1998 - Morita chosen as one of Time magazine’s 20 most influential business people of the 20th century - the only Asian member on its list. • Akio Morita: The Sony man • who put Japan on the corporate • map passed away in October 1999.

  8. Procurement Policies Reflect Corporate Policy • Open Doors and Fairness • Quality and Competitive / Reasonable Price • Delivery Assurance and Services • Optimum Procurement • Technology Development • Suppliers' Management

  9. Strategy and Organization • Continue to focus on communications and home electric appliances, but also content and services • Vertically integrated business • Vision is to become a broadband entertainment company • CEO Idei Nobuyuki wants Sony to be wherever people gather (Internet) • Product-Market Strategy: Apply IT to product design, production, distribution, and sales

  10. Sony Business Units • Electronics: • Audio,Video, Televisions Information and Communications. • Sony Computer Entertainment: • Hardware and related software • Sony Music Entertainment: • Sony Music Entertainment Inc.: Columbia Records, Sony Classical, Sony Discos,Sony Disc Manufacturing, and Sony Music Nashville • Sony Music Entertainment Japan: Sony Records and Epic Records

  11. Sony Business Units • Sony Pictures Entertainment – • motion picture - production, acquisition and distribution • television – programming, production, acquisition and distribution • home video - acquisition and distribution • television broadcasting • operation of studio facilities • Sony Life Insurance • Other: • Sony Finance International, Inc. • Sony Trading International Corporation • Sony Broadcast Media Co. Ltd. • Other local entertainment businesses in Japan, U.S., and Germany. Blue Streak Wheel of Fortune Big Daddy

  12. Region $ (Millions) % of Total Japan 20,012 32 US 19,124 30 Europe 13.872 22 Other Regions 10,074 16 Total 63,082 100 Sony Business Units

  13. Interesting Current Initiatives • E-Commerce • SonyStyle.com in Feb 2000 • Strategy reflects its desire to reduce the role of the big discounters as middlemen and gain greater control over prices • Car Navigation Systems • 7% of worldwide market • These systems incorporate sophisticated technology, including web-access and advanced voice recognition. • Video-Game Machines and Console Software • Sony’s Playstation 2 (PS2) is claimed to be the first next-generation game console. This system can play DVDs, CVDs, and CD-Roms. • In February, Sony Corp. unveiled an alliance with game software makers Sega Corp. and Namco Ltd. in online game distribution.

  14. Interesting Current Initiatives • AIBO- Artificial Intelligence ROBOT • As close to human as possible – has emotions and instincts

  15. Questions to Ask • PlayStation2 was an instant success with demand clearly surpassing supply. Some say it is because of inaccurate demand forecasts while others suggest that it was an intentional strategy. What is you take on this? • How is your electronic division and music division responding to concerns over MP3 format piracy issues and your secure yet not very popular format? • How has the vision of your founder, who recently passed away, been passed on to the new management team at Sony? • How has the dissatisfaction of some CD retailers over your strategy to sell directly to consumer affected your distribution strategy via SonyStyle.com?

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