Sony Tries to Battle Its Way Back Up After a Huge Downfall Essays

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Executive Summary
At the beginning of XXI century leading Japanese electronics manufacturer Sony Corporation faced operational and financial stagnation. Reported losses were huge even for such a big conglomerate as Sony, net income in 1999 fell to 121.83$ billion from 179$ billion in 1998 and following decrease continued till record 16.75$ billion in 2001. Shareholders worried as the stock price was falling down even though top management made some structural changes: assets were sold, work force was reduced by 17,000. Sony had the only choice to do some reformations in structure, strategy and innovative products because it was losing the war to its competitors in the market. Therefore, “Transformation 60” was launched as a restructuring
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Results of the report show that Sony is facing huge problems with integration of newly chosen strategy, synchronizing divisions of the company so they can operate based on internal information not rashly and financial problems due to loss of the leading position in the market and impossibility of future competition with other companies as they are always one step ahead. Considering restructure mode and newly chosen management company needs time to operate in line with its goals because current position can be described as lack of synchronization, communication and vision.
After making SWOT analysis of Sony business model and reviewing whole current position, it is suggested Sony to create more precisely its future market strategy considering more production of more profitable products. Furthermore, company has to rely on its partners in creating innovative technologies because as it’s known the only product (“CELL”) that could return Sony to the market was produced in jointly with Toshiba and IBM. Emphasizing on innovations such as convergence of entertainment and games can be profitable due to absence of such a product in the market but company has to hedge all its further risks because market is very dynamic and it cannot be predicted whether new product will bring profit or fail. In addition, progress in innovations along with reducing their manufacturing costs, acquire of new patents and improve of quality may return Sony to its

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