Sony Corporation - Losing Competitive Advantage
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Transformation 60 was a three year restructuring plan, which required Sony to lay off 13% of its workforce or about 20,000 people by March 2006. The plan aimed at optimizing manufacturing infrastructure and reducing fixed costs, by combining the operating divisions and shifting component sourcing to low cost markets like China. Sony planned to reduce costs by downsizing and consolidating manufacturing, distribution, customer service facilities and also by streamlining procurement. Through these efforts, Sony aimed to achieve cost savings of ¥300 billion by March 2006...
Clarifying Operational Structure and Concentrating on Technology and Resources for Growth
Reforming Operational Profit Structure
In order to revise the profit structure, Sony planned to implement its second phase of structural reforms in its electronics and entertainment sectors from 2005. Sony planned to focus resources on the important categories like flat panel televisions, home servers and mobile products. Sony EMCS (Engineering, Manufacturing and Customer Services) was revamped to strengthen products like Trinitron CRT televisions, analog video and personal audio systems. The engineering and production technology function was strengthened and the distribution function was integrated with the production, engineering and customer service functions...
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