1. Doyoung Park, Osaka Gakuin University
Sony’s Rise and Fall
Doyoung Park, Osaka Gakuin University

2. Established in 1946
Masaru Ibuta, Akio Morita
Representative electronics company of Japan
One of the world's largest media conglomerates
Revenue $78.88 billion U.S. (FY2008)
Employees: 17,555
Related employees: 180,500
World’s ranking of the brand value: #25
Business Week 2008

3. Models as Sub Brands

4. History of Sony Tokyo Telecommunications Engineering Conpany ,1946
Tape recorder market share 91%, 1950
Developed a transistor radio, 1955
Pocket size radio, 1957
Change the name of the company to SONY, 1957

5. Sony Rolly in Motion, 2007

6. The Rise and Fall of Sony

7. Sony Sonus (sound, sonic) + Sonny (baby)
Identity of the maker of small sound device
Easily pronounced in every country
Successful naming

8. Morita’s Choice Using their brand instead of Sony
Sony attempted to export radios to USA, 1956
US buyer offered OEM order 100,000
Using their brand instead of Sony
Headquarter wanted to accept the order
Morita decided to decline the order to keep Sony brand
When Morita retired,
“My decision in 1956 which sacrificed short-term interests but pursued a long-term goal was the best choice that I have ever made for Sony.”

9. Globalization Sony USA 1960s Factories in USA and UK 1970s
First Japanese company in NASDAQ
Went globalization
Sony as the global company
Avoid the competition with Hitachi, Matsushita in Japan

10. Trinitron
Sony’s advanced color TV, 1968

11. Walkman 1979 Compact tape player Popular in America
Created a new life style
Meism

12. Handycam
First personal video camera 1985

13. Sony Style
Technology + New life style

14. Into the Entertainment Business
Expanded the territory to Entertainment business
CBS Record 1988
Columbia Picture 1989
Japanese company conquered American show business!

15. Beta, Sony’s Lost VHS VS Beta max 1974-1988
Sony developed Beta video format
Tried to be an industrial standard
Matsushita developed VHS
Beta was superior to VHS
VHS occupied rental video market
Contents suppliers chose VHS
Sony released VHS VCR 1988

16. Return of Sony Play Station, 1994
Competed with Sega Saturn and Nintendo 64
CD-Rom
3D graphics
100,000,000 sold by 2004

17. Final Fantasy 7
Killer title of PS
Open to game companies

18. PS2, 2000 Conquered the game console market Compatible with PS1
DVD, Enhanced 3D
Defeated Xbox and Nintendo Cube
140,000,000 sold

19. Obsession with Sony Format
Memory Stick
Compete with SD card
ATRAC
Sound compression technology for Mini Disk
Compete with MP3

20. Lost in Music Device Stuck to MD players and ATRAC format
Late entering the digital music device market
MP3 Walkman defeated by Ipod

21. Lost in Flat Screen Stuck to Trinitron Late entering LCD TV market
Samsung has #1 market share in LCD TV
S-LCD
LCD manufacturing company – Samsung + Sony
Bravia

22. Lost in Game Console PS3 Full package of high technology
Delayed release
Defeated by Nintendo Wii and Xbox360

23. Sony in Troubles Deficit 99 billion yen, 2008
120 billion yen deficit projected, 2009
Laid off 16,000 employees to save 100 billion yen
6 factories closed among 57
Questionable Market reading ability
Late decision process