Sony Corporation in 2004: Managing a Global Corporation

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:			Price:
Case Code	:	BSTA116	Electronic Format: Rs. 500; Courier (within India):Rs. 25 Extra Themes -
Case Length	:	20 Pages
Period	:	1946 - 2004
Organization	:	Sony Coporation
Pub Date	:	2005
Teaching Note	:	Not Available
Countries	:	Japan
Industry	:	Consumer Electronics

Abstract:

Sony is today one of the most global corporations in the world. Right from its inception, Sony anticipated that its success would be determined by competition in the international markets, rather than that at home. To manage its global operations, Sony has put in place a sound management system, restructured its operations time and again, and strengthened its technological capabilities through strategic alliances with other global players. Currently, Sony faces major concerns. Companies like Apple and Samsung have launched breakthrough products in their respective markets. Under an onslaught of competition from Korean and Chinese electronic goods manufacturers, as well as new rivals like Dell, Gateway and Hewlett- Packard, Sony is now facing pricing pressures.

The case discusses the growth of Sony as a global company, its various initiatives to maintain its leadership in international markets and its various restructuring exercises to keep up with the pace of growth and revitalise the organisation.

Keywords:

Sony, Akio Morita, Noboyuki Idei, Nintendo, Electronics, Restructuring activities, Matsushita, BMG (Bertelsmann Music Group), Globalisation, Production locations, Research and development, Research centres, Global co-ordination, Corporate governance, Worldwide production shipments

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