Sony Problems and Issues
A Report analyzing current problems/issues faced by the Sony Corporation and suggested solutions
Presented to Ajay Kumar, Strategic Management Lecturer
Report researched and written by Adelina Abushaeva, student of Central Queensland University
Executive Summary
This report analyzes the problems/issues which Sony Corporation faces. The company is facing multi faced problems and its solution should also be multi faced. It requires a major over haul. Sony's current financial difficulties are tied to its corporate culture which begun over 30 years ago.
The key problems/issues of Sony are slowing down of sales and revenues, cost cuttings, moving factories in Asia, cooperation between divisions and efficient management. With such a large multinational corporation, greater planning and more use of strategies should be pursued. Sony could start with the implementation of a new strategy, with profit and benefits of the company tied more closely to everyday operations. Internally, the company’s forces, such as the management, the designers, the production and the marketing should achieve better communication and cooperation. Alliance and cooperation between competitors should also be actively sought in order to create standards in new fields. Sony should aim at being the leader in its field.
Recommended solutions:
• Regarding cost cutting strategy, Sony should seriously consider setting up operations in other Asian countries in order to take advantage of the cheap labor and the emerging markets.
• Diversification, instead of pursuing the fast changing and easily imitated consumer goods market.
• Sony should use its technological know-how for high-end business and office equipment.
Table of Contents
Title Page
Executive Summary
Table of Contents
1.0 Introduction 4
1.1 Background of Sony 4
1.2 Problems 4
2.0 Schools of strategy thoughts 5
3.0 Analysis and suggested solutions 6
Presented to Ajay Kumar, Strategic Management Lecturer
Report researched and written by Adelina Abushaeva, student of Central Queensland University
Executive Summary
This report analyzes the problems/issues which Sony Corporation faces. The company is facing multi faced problems and its solution should also be multi faced. It requires a major over haul. Sony's current financial difficulties are tied to its corporate culture which begun over 30 years ago.
The key problems/issues of Sony are slowing down of sales and revenues, cost cuttings, moving factories in Asia, cooperation between divisions and efficient management. With such a large multinational corporation, greater planning and more use of strategies should be pursued. Sony could start with the implementation of a new strategy, with profit and benefits of the company tied more closely to everyday operations. Internally, the company’s forces, such as the management, the designers, the production and the marketing should achieve better communication and cooperation. Alliance and cooperation between competitors should also be actively sought in order to create standards in new fields. Sony should aim at being the leader in its field.
Recommended solutions:
• Regarding cost cutting strategy, Sony should seriously consider setting up operations in other Asian countries in order to take advantage of the cheap labor and the emerging markets.
• Diversification, instead of pursuing the fast changing and easily imitated consumer goods market.
• Sony should use its technological know-how for high-end business and office equipment.
Table of Contents
Title Page
Executive Summary
Table of Contents
1.0 Introduction 4
1.1 Background of Sony 4
1.2 Problems 4
2.0 Schools of strategy thoughts 5
3.0 Analysis and suggested solutions 6