Akio Morita - The Man Who Made Sony

 
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Case Details:

Case Code : LDEN005
Case Length : 12 Pages
Period : 1921-1994
Pub Date : 2002
Teaching Note :Not Available
Organization : Sony
Industry : Consumer Electronics
Countries : Japan

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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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Excerpts

Morita - The Leader

Since its beginning, when Morita founded the company, he believed that the future of the company lay in brand-building and capturing overseas business.

Unlike the other Japanese companies during those days, Morita did not want to use a company symbol on its products and decided to use the company's name instead.

During his trip to the US and Europe in 1952, Morita found that the company name - Tokyo Tsushin Kabushiki Kaisha - was a tongue twister and nobody could pronounce it correctly. Thus, a name had to be found which was not too long, had only four to five letters and would be pronounced easily.

Leadership and Entrepreneurship Case Studies | Case Study in Management, Operations, Strategies, Leadership and Entrepreneurship, Case Studies

After considerable research, the duo decided to use the name 'Sony', which was derived from the two words 'Sonus'(which in Latin means sound) and 'Sonny'(which was an English slang for bright, young and cute boys). Moreover, since they felt that they themselves were one, they decided on the name 'Sony'...

Sony after Morita

After Morita's resignation, Sony seemed to have missed many opportunities. It was not successful in the flat-display televisions and computer market.

It also failed in the cellular phones market. Eventually, the cell phone business of Sony was merged with Ericsson.

Analysts also felt that Sony should sell the loss-making Aiwa Company and discontinue the Trinitron TV product line, which was making losses in spite of being a pioneer and a leading product during its initial years...  

Exhibits

Exhibit I: Corporate Philosophy of Sony
Exhibit II: Sony's Revenues by Business and Geographic Segment
Exhibit III: Sony's Product History
Exhibit IV: Five-Year Financial Summary of Sony

 

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