Sony Corporation - Losing Competitive Advantage

            
 
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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 : BSTR192 Electronic Format: Rs. 400;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Themes

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Case Length : 20 Pages
Period : 1998-2005
Organization : Sony Corporation
Pub Date : 2005
Teaching Note : Available
Countries : Japan
Industry : Consumer Electronics

Abstract:

The case discusses the problems faced by Japanese electronics and communications company - Sony Corporation in the early 2000s and two of the restructuring exercises that Sony was subjected to in 2003 and in 2005. With all its previous restructuring programs not yielding the desired results, Sony adopted a new restructuring plan under the leadership of its first non-Japanese CEO Howard Stringer.

There were mixed reactions for the new restructuring plan from several quarters. The case outlines the strategies which Stringer plans to adopt to achieve an operating profit margin of 5% by Sony in 2008 and debates the efficacy of these strategies.


Issues:

» Examine the implications of frequent restructuring by Sony
» Evaluate the strategies adopted by Sony to regain its lost market share
» Study the emerging trends in the consumer electronics industry

Contents:

  Page No.
Fall From Grace 1
Background Note 2
Transformation 60 4
Clarifying Operational Structure and Concentrating on Technology and Resources for Growth 5
Reforming Operational Profit Structure 6
The Implications 6
Stringer Becomes CEO 7
Restructuring in 2005 9
Looking Ahead 11
Exhibits 15

Keywords:

Sony Corporation, Restructuring, Transformation 60, Howard Stringer, Business Model, Convergence, Organizational structure, Decentralization, Management structure, Commoditization, Financial Performance

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