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SONY CORPORATION Yuki, Sylvia, Caitlin & Casey. Agenda Sony Commercial Sony Commercial History Global Expansion SWOT Analysis Competitors Industry Analysis.

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Presentation on theme: "SONY CORPORATION Yuki, Sylvia, Caitlin & Casey. Agenda Sony Commercial Sony Commercial History Global Expansion SWOT Analysis Competitors Industry Analysis."— Presentation transcript:

1 SONY CORPORATION Yuki, Sylvia, Caitlin & Casey

2 Agenda Sony Commercial Sony Commercial History Global Expansion SWOT Analysis Competitors Industry Analysis Recommendations Conclusion

3 History of Sony Started in 1946 by Masaru Ibuka and Akio Morita in Japan In December 1955 released Sony TR-72, a transistor radio First step into the global market Sonys outstanding technology revolution in TV industry 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

4 History of Sony cont Television introduced in each country.

5 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

6 SWOT Analysis Strengths Strong corporate brand identity Ranked 29 th 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

7 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

8 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

9 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

10 Global Expansion First attempt of expansion in Hong Kong in 1959 Plant was shut down in 1961 1970Expanded into Cologne, Germany 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

11 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

12 Competitors Royal Philips Electronics Inc. Established in Netherland in 1891 Target high-end markets and high-technology 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

13 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

14 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

15 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

16 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

17 Industry Analysis cont. Global Issues Quality problems: black screen, vertical line, black belt High completion and low margin

18 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

19 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

20 Conclusion Sony Commercial History Global Expansion SWOT Analysis Competitors Industry Analysis Recommendations


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