Abstract

In 2004, Sony faces various concerns. Competition from low cost players such as Samsung and LG Electronics is increasing. In the video gaming market, where its PlayStation is the leader, Sony is facing tough competition from Microsoft and a resurgent Nintendo, and Apple seems to be well ahead of Sony in on-line music. In an effort to re-invent itself and accelerate growth, Sony has launched a restructuring effort termed 'Transformation 60' in two phases. In phase one, the basic strategy would be formulated and in phase two, the strategy would be refined. The essential elements of Transformation 60 are clarifying operational structure, generating faster growth, innovation and cost cutting. Will Transformation 60 have a positive impact on Sony's bottom line?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Sony, Corporate strategy, Organisational restructuring, Transformation 60, Apple, Columbia Pictures, PlayStation, Consumer electronics, Restructuring, Convergence, Entertainment