Sony Corporation - Restructuring Continues, Problems Remain

            
 
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Case Details:

Case Code : BSTR361
Case Length : 22 Pages
Period : 1995-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Sony Corporation
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

Background Note

Sony was founded in 1946 as Tokyo Tsuchin Kyogo by Masaru Ibuka and Akio Morita (Morita) in war-ravaged Japan. Initially, the company had 20 employees and a capital of 190,000. Right from its inception, Sony focused on product innovation and on offering high quality products...

The Restructuring Efforts

In the early 1990s, in spite of a moderate increase in Sony's operating revenues, its operating and net income witnessed a decline. After the electronics business was restructured in 1994 under the then CEO Norio Ohga, the company's performance deteriorated further and Sony reported a loss of 293.36 billion in 1995...

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The Outcome

After the reorganization announced in 2005, Stringer went on to revamp Sony. Sony's Aibo, a robotic pet, was discontinued after the Robotics unit was shut down due to its low revenue generation...

Problems Resurface Again

In mid-2008, Sony's management remained confident that its television unit would turn profitable. The sales of LCD TVs of Sony rose from one million units in 2005 to 15.2 million units in 2008. But with the global recession affecting spending on luxury products, Sony's fortunes took a turn for the worse...

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