1. Yuki, Sylvia, Caitlin & Casey
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 California’s Unitary tax system
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 Future Trends First TV invented in 1924
RCA launched worlds first black and white TV in 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