1. SONY CORPORATION
Yuki, Sylvia, Caitlin & Casey

2. Agenda
 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
 Sony’s 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 Sony’s 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 29th in top 100
 Soy’s brand value in 2009 at 11,953 million
 Umbrella brand strategy had the most success
 Sony’s Corporation diversified geographic base
 Sony’s Research and Development abilities

7. SWOT Analysis cont.
 Weakness
 Sony’s plants located in inconvenient locations
 Too expensive and far away from consumers
 High shipping and long deliver process
 This all effects Sony’s 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 TV’s to American Region
 Focus on emerging market’s economies
 Sony has gained success in India Market
 Sony’s growth depends on performance in emerging
markets

9. SWOT Analysis cont.
 Threats
 Unfavorable foreign exchange rate
 Sony’s international market sales value 75.8%
 Japan’s currency appreciated against US dollar and
Euro
 Sony’s products more expensive; sales to drop
 Worsening economic situation
 Sony’s 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
 1970—Expanded 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
 1972—TV manufacturing plant opened
 Created plant because of high shipping costs
 Plant was used to produce Trinitron color TV
 Hired TV salesmen to sell TV’s rather than distributors

11. Global Expansion
 Anti-dumping lawsuit
 Started in 1968 in the United States
 Against all Japanese TV manufacturers for selling
TV’s cheaper in US than Japan
 1975—Sony received official notice they weren’t
under investigation
 California’s Unitary tax system
 Tax system was based on entire corporation’s 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 it’s most significant product
 Comes from ―aqua‖ and ―quality‖, meaning image
caused by liquid crystal material flow
 Taiwan’s 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
 Don’t 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