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Sony moves on with synergy exit

Posted: 20 Feb 2015 ?? ?Print Version ?Bookmark and Share

Keywords:content-hardware synergy? CMOS? image sensors? TV? Return on Equity?

Sony's former CEO Sir Howard Stringer insisted on capitalising on the combination of the content and electronics hardware businesses, saying that "we will be reaping benefits from synergy." This obviously never happened.

Stringer also stressed the importance of breaking down divisional "silos." A decade later, according to Sony's new mid-term corporate strategy (FY2015FY2017), Hirai is trying to give each business unit "greater autonomy, while holding them accountable to achieving their targets."

Now that Sony is spinning off most of its hardware business units as separate companies, those silos might make more sense.

Meanwhile, the "One Sony," promoted by Stringer and later Hirai, is now turning into many Sony spin-offs. Each is left to its own devices. If they get lucky, they'll find partners or buyers.

Profitability over volume

According to the company's new mid-term strategy, Sony is now emphasising "profitability over volume." The company also declared that it's now positioning a "Return on Equity (ROE) as its primary key performance indicator." The company has set a target for consolidated ROE of more than 10 per cent and a target for consolidated operating profit of more than $4.2 billion for the Sony Group in FY2017, the final year of its mid-range corporate plan, the company said.

Sony

(Sourse: Sony)

Does this mean that until now, Sony, as a corporation, hadn't awakened to the importance of profitability and shareholder value? This is hard to believe. But maybe the company hung on too long to the secret Japanese business codeputting employees first before shareholders. More accurately, by hiding behind that secret code, Sony management exerted less discipline on sprawling projects and the cost overruns that often accompanied them. Obviously, Sony can no longer afford that noble cause.

Sony trumpeted a variety of marketing slogans over the years ranging from "The One and Only", "It's a Sony" to "like.no.other" and "make.believe." Its current slogan is "BE MOVED." None of those marketing phrases made sense to me, but the latest one C "BE MOVED" C sounds more applicable to Atlas Van Lines.

In the latest mid-term strategy, Sony concluded its plan by saying the following:

  • Sony is setting "profit generation and investment for growth" as the theme of its mid-range corporate plan from FY2015 through FY2017. In order to continue providing customers with kandoto move them emotionallyand inspire and fulfil their curiosity, Sony will strive to deliver unique products, services and business models that generate customer value and thus enhance its corporate value.

OK. It's the usual empty statement every corporation gives out. But maybe, Sony finally has one focuson its content business (movies, games and music)to give credence to its "BE MOVED" marketing campaign.

If they stick to it, things might work out. If not, we might see those moving vans after all.

- Junko Yoshida
??EE Times


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