SONY

CORPOR ATION
by,
srishty singhal

AGENDA
Company History

Founder : Akio Morita

Corporate Policy Strategy & Organization

Current Initiatives

Company History
1946
1950 1955 1957 1958

- Tokyo Telecom Engineering

- First Japanese tape recorder - First transistor radios - First pocket-sized radio - Name change to Sony

(from "sonus," Latin for "sound," and "sonny," meaning little man)

1968 growth
1979

- Intro of Trinitron color TV explosive

- Walkman personal stereo

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

1999

- Walkman with MP3 capabilities

Company History

2000
online 2000 Sony 2001 online

- Formed PlayStation.com games/software - Restructured all entertainment units under Broadband Entertainment - JV Sakura Bank and JP Morgan Chase for bank.

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.

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 magazines 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.

Procurement Policies Reflect Corporate Policy

Open Doors and Fairness

Quality and Competitive / Reasonable Price Delivery Assurance and Services Optimum Procurement Technology Development Suppliers' Management

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

 Electronics:

Sony Business Units

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

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:

Blue Streak

Wheel of Fortune

Big Daddy

Sony Finance International, Inc. Sony Trading International Corporation Sony Broadcast Media Co. Ltd. Other local entertainment businesses in Japan, U.S.

Sony Business Units

Region
Japan
US Europe Other Regions Total

$ (Millions)
20,012
19,124 13.872 10,074 63,082

% of Total
32
30 22 16 100

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

Sonys Play station 2 (PS2) is claimed to be the first nextgeneration 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.

Interesting Current Initiatives AIBO- Artificial Intelligence ROBOT

As close to human as possible has emotions and instincts

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?