Case Study About Sony Corporation


CASE STUDY - Sony CorporationSony Corporation

(commonly referred to as


) (Japanese:


Son KabushikiKaisha


) is a multinational conglomerate corporation headquartered in Minato, Tokyo, Japan,and one of the world's largest media conglomerates with revenue exceeding ¥ 7.730.0 trillion, or $87.85 billion U.S. (FY2009). Sony is one of the leading manufacturers of electronics, video,communications, video game consoles, and information technology products for the consumer and professional markets. Its founders Akio Morita and Masaru Ibuka name derived the namefrom


, the Latin word for sound, and also from the slang English word 'sonny', since theyconsidered themselves to be 'sonny boys', a borrowed term which in early 50s which Japanconnoted smart and presentable young men.Sony Corporation is the electronics business unit and the parent company of the Sony Group,which is engaged in business through its five operating segments²electronics, games,entertainment (motion pictures and music), financial services and other. . Sony's principalbusiness operations include Sony Corporation , Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Ericsson, and Sony Financial.Sony's headquarters moved to Minato, Tokyo from Shinagawa, Tokyo around the end of 2006.In May 1956, the company released the TR-6 radio, which featured an innovative slim designand sound quality capable of rivaling portable tube radios.University of Arizona professor Michael Brian Schiffer, PhD. says, "Sony was not first, but itstransistor radio was the most successful. The TR-63 of 1957 cracked open the U.S. market andlaunched the new industry of consumer microelectronics." By the mid 1950s, American teenshad begun buying portable transistor radios in huge numbers, helping to propel the fledglingindustry from an estimated 100,000 units in 1955 to 5,000,000 units by the end of 1968.In Mid eighties Sony launched Walkman which was the most successful product ever in thehistory of electronics and made Sony brand popular and acceptable all over the world.In 1994 Sony launched the PlayStation (later 

PS one

). This successful console was succeeded bythe PlayStation 2 in 2000, itself succeeded by the PlayStation 3 in 2006. The PlayStation 2 hasbecome the most successful video game console of all time. It has sold a total of over 140million units and still going on.Sony is now operating in absolutely changed global environment in 2009. The leading brand of electronics is loosing market share to Samsung , LG and some other electronic companiescoming from Taiwan and China.While other electronics companies have flourished, Sony's fortunes have suffered. Leadingcompetitor Samsung's shares have soared 72 percent since early 2000. After reaching recordhighs five years ago, Sony's shares have lost almost three quarters of their value ² the lowestpoint came two years ago when the company reported dreadful financial results and saw a 25percent drop in share price. Analysts called that happening "Sony Shock".

The sony corporation: A case study in transnational media management

Richard A. Gershon, Tsutomu Kanayama


The following paper is a case study analysis of the Sony Corporation; a leading transnational media corporation in the production and sale of consumer electronics, music and film entertainment and videogame technology. There are two main parts to this study. Part I, examines the history and development of the Sony Corporation. This paper argues that the business strategies and corporate culture of a company are often a direct reflection of the person (or persons) who were responsible for developing the organization and its business mission. Part II. examines the Sony Corporation from the standpoint of business strategy. Special attention is given to the subject of organizational culture and strategic decision-making. A second argument of this paper is that while Sony is a transnational media corporation, the organization is decidedly Japanese in its business values. The significance of this research lies in its revelations concerning the complex changes facing a company that was once historically Japanese in its origins but is tecoming increasingly transnational iumln scope and operations.


Full Text:


International Journal on Media Management 
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