1. SEYDI ABDISHEV BUS 449 A PROF. GÖKSOY

2. Company Introduction  Used to be one of the leading manufacturers of electronics, video, communications, and information technology products for the consumer and professional markets.  The founder of Sony is 2 Japanese man which are Masaru Ibuka and Akio Morita on 7th May 1946  The company is headquartered in Minato, Tokyo, Japan, has revenues exceeding ¥ 7.730.0 trillion, or $78.88 billion U.S. (2014).  Its name is derived from sonus, the Latin word for sound.  Hardware products include Playstations, cameras, personal digital assistants, mobile phones, lenses laptops --, walkmans, tablets, tv sets, audio and video recorderrs etc.  Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its five operating segments

3. Product time line

4. Sony Corporation Sony Electronics Sony Pictures Entertainment Sony Ericson Sony Financial Sony Music Entertainment

6. Slowing demand for some of its flagship products (changing dynamics of markets) Price and innovation competition soared with the rise of the Asian rivals such as… (they started undercutting Sony) Aging product lines and product obsolescence (dusty) in its mobile phone divisions (same as Nokia) Severe operating environment - decreased demand and intensified pricing pressure as a result of the slowdown of the global economy. * 2009 – the disastrous year – a $449 million loss *2012 – 6.4 bn loss (it has not turned profit in since 2008) Astonishing lack of ideas Sony’s woes mirror a wider decline in Japanese electronics - appreciation of the yen, and a significant decline in the Japanese stock market The verdict of the stock market has been swift and brutal. Sony’s share price closed at 1,444 yen ($17.83) (compared to 65 in the 1990s) Commoditization of the TV market Reasons for Change

7. How did they change 1) 2)

8. After disappointing sales, Sony pulled the plug on its answer to Apple’s iTunes, the Sony Connect online store, after just three years. It has not been able to offer up a comprehensive alternative since. Change of the CEO AN area where Sony has found success — and perhaps one that most crystallizes the transition from stand-alone consumer electronics into a digital, Internet-centered world — is video games. Sony marketed its PlayStation 3 console, for example as an integrated entertainment system that serves as a hub in the living room, connecting the Internet and television. Restructuring Dropping of loss-generating divisions Focus on software development with little emphasis on hardware Exit the pc business Spun off tvs

9. His four-point plan consists of building on Sony's core competencies, getting its TV house in order, figuring out where it can cut costs, and speeding up innovation. http://www.theverge.com/2012/2/2/2765928 /kaz-hirai-4-point-plan

10. Sony beat analyst estimates with a 38.8% increase in operating profit for the first quarter of 2015, but its pictures division incurred a $96M loss Sony http://arstechnica.com/gadgets/2015/04/sony-on-road-to-recovery-thanks-to-strong- ps4-and-camera-sensor-sales/ However, strong PlayStation 4 and camera image sensor sales mean the company is predicting strong results for 2015, and expects to make ¥320 billion ($2.69 billion) in operating income and ¥140 billion ($1.1 billion) in net profit. For the 2014 fiscal year, Sony reported it had shipped 14.8 million PS4s. Combined with the 7.5 million shipped in the company's 2013 fiscal year (when the console was launched towards the tail end of it) total PS4s shipped are now 22.3 million. A few days ago, we reported that Microsoft's Xbox One sales faltered slightly in Q1 2015.Microsoft's Xbox One sales faltered slightly Sales of Sony's camera image sensors—which are used in several high-profile smartphones, including Apple's iPhone—jumped up 20 percent from 320 million units to 450 million units. The division brought in 16.5 percent more revenue and a 36 percent higher operating profit. These numbers mark the beginning of a turnaround for Sony, which has missed several of its earning targets over the past seven years, and a win for CEO Kaz Hirai's plans to overhaul the company.CEO Kaz Hirai's plans to overhaul the company Still, investors are happy with the way things are going: shares in the company have risen more than 30 percent during 2015. The outcome of the transition

12. Evaluation of the process

13. Still, investors are happy with the way things are going: shares in the company have risen more than 30 percent during 2015. That said, Sony still has some black holes in its portfolio to attend to, most of all its mobile and tablet business, which continues to bleed money. While smartphones sales remained largely flat, the division made an operating loss of ¥217.6 billion ($1.82 billion) thanks to a ¥176 billion ($1.47 billion) impairment charge, and restructuring costs from the sale of Visual Audio Intelligent Organizer (VAIO). The mobile division is also the only core division that Sony expects to lose money in 2015, forecasting an operating loss of ¥39 billion ($327 million).

14. http://www.bloomberg.com/news/videos/b/7e0976bb-9615-44ae-99be- a18740069f93 http://www.bloomberg.com/news/videos/b/7e0976bb-9615-44ae-99be- a18740069f93 http://www.nytimes.com/2012/04/15/technology/how-sony-fell-behind-in-the- tech-parade.html http://www.nytimes.com/2012/04/15/technology/how-sony-fell-behind-in-the- tech-parade.html http://deadline.com/2015/07/sony-earnings-first-quarter-2015-1201487453/ https://kansasreflections.wordpress.com/2010/09/06/reflecting-on-the-evolution- of-strategy-at-sony-and-panasonic/ https://kansasreflections.wordpress.com/2010/09/06/reflecting-on-the-evolution- of-strategy-at-sony-and-panasonic/ http://www.imaging-resource.com/news/2012/03/27/major-changes-for-sony-as- company-focuses-on-digital-imaging http://www.imaging-resource.com/news/2012/03/27/major-changes-for-sony-as- company-focuses-on-digital-imaging http://www.ukessays.com/essays/commerce/sony-corporation-and-its- organizational-change-commerce-essay.php http://www.ukessays.com/essays/commerce/sony-corporation-and-its- organizational-change-commerce-essay.php http://articles.latimes.com/2011/jul/03/business/la-fi-leckey-20110703 http://www.wikinvest.com/stock/Sony_%28SNE%29/Issues_Facing_Sony_Manage ments_Response_Those http://www.wikinvest.com/stock/Sony_%28SNE%29/Issues_Facing_Sony_Manage ments_Response_Those http://arstechnica.com/gadgets/2015/04/sony-on-road-to-recovery-thanks-to- strong-ps4-and-camera-sensor-sales/ http://arstechnica.com/gadgets/2015/04/sony-on-road-to-recovery-thanks-to- strong-ps4-and-camera-sensor-sales/ http://www.theverge.com/2012/2/2/2765928/kaz-hirai-4-point-plan References:

15. Thank you for your attention