SONY C O R P O R A T I O N Berrak Dogruer Mazen Ferzly Hiep Nguyen Douglas Roach Rafik Ward

A G E N D A Company History Founder : Akio Morita Corporate Policy Strategy & Organization Current Initiatives

Company History 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”) Intro of Trinitron color TV – explosive growth Walkman personal stereo

Company History 1980’s - Major Producer of computer disks/ floppies Bought CBS Records for $2 billion Bought Columbia Pictures for $4.5 billion Sony Playstation 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 Walkman with MP3 capabilities

Company History Formed PlayStation.com – games/software online Restructured all entertainment units under Sony Broadband Entertainment JV Sakura Bank and JP Morgan Chase for online 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 “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 Morita chosen as one of Time magazine’s 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

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 Strategy and Organization

Electronics: 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: Sony Finance International, Inc. Sony Trading International Corporation Sony Broadcast Media Co. Ltd. Other local entertainment businesses in Japan, U.S., and Germany. Blue Streak Wheel of Fortune Big Daddy

Sony Business Units Region$ (Millions)% of Total Japan20,01232 US19,12430 Europe Other Regions10,07416 Total 63,082100

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 Sony’s Playstation 2 (PS2) is claimed to be the first next-generation 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?