SONY

Yash Surana

SONY

SONY CORPORATION IS THE PARENT COMPANY OF THE SONY GROUP AND IS ENGAGED IN BUSINESS THROUH ITS SIX OPERATING SEGMENTS- ELECTRONICS,MUSIC,GAMES,PICTURES, FINANCIAL SERVICES AND OTHERS. SONY RECORDED CONSOLIDATED ANNUAL SALES OF APPROXIMATELY $64 BILLIONS FOR THE FISCAL YEAR ENDED MARCH 31,2006, AND ITS EMPLOYS 151,400 PEOPLES WORLD WIDE.

HISTORY

IN 1945, AFTER WORLD WAR II , MASSARU IBUKA STARTED A RADIO REPAIR SHOP IN A BOMBED OUT BUILDING IN A TOKYO. THE NEXT YEAR HE WAS JOINED BY HIS COLLEAGUE AKIO MORITA, AND THEY FOUNDED A COMPANY CALLED TOKYO TSUHIN KOGYO K.K.(TOKYO TELECOMMUNICATIONS ENGINEERING CORPORATION). IN 1958 COMPANY’S NAME CHANGED TO SONY.

Land marks 1950 – Japan's first magnetite – coated, paper based

recording tape “ sony tape“ launched. 1955 Japan's first transistor radio launched. 1958 – company name changed to SONY corporation. 1960 - World’s first direct- view portable TV , the TV8–30

launched. 1961 – sony become the first company to offer share in

the U.S.A. 1963 – world’s first compact transistor VTR, the PV- 100

launched. 1968 – trinitron colour TV launched

Land marks 1979 – launch of the TPS-L2, the first personal

headphone stereo “ walkman”. 1982 – world’s first CD player launched. 1984 – portable CD player ( later called “discman”) the

D-50 launched. 1989 – compact and lightweight passport sized 8mm

camcorder, “ handycam” launched. 1989 – columbia pictures entrtainment acquired.

Renamed sony pictures entertainment Inc. in 1991. 1996 – launch of digital still camera cyber shot.

Land marks 1997 – home use PC “ VAIO” launched. 1997 – flat CRT “ WEGA” launched. 2001 – sony ericsson mobile communications

established. 2002 – sony absorbs AIWA by merger. 2005 – acquisition of Metro-Goldwyn-mayer (MGM).

Management

Howard stringer chairman and CEO

Ryoji chubachi president

Members of the board Katsumi ihara Akishinge okada –advisor,sumitomo mitsui banking corp Hirobumi kawano – senior vice president, jfe steel corp. Yotaro kobayashi – chief corporate advisor, fuji xerox ltd Sakie fukushima – reprensentive, korn/ferry international Yushihiko miyauchi – director, ORIX corporation Fujio cho – vice chairman , toyota motor corporation Ned lautenbach – operating partner , clayton dubilier &

rice inc. Goran lindahl – chairman & CEO livsafe group Fueo sumita - chief of sumita accounting office Peter bonfield- member of board,telefonaktiebolaget LM

Ericsson

BUSINESSES

ELECTRONICS MUSIC PICTURES GAMES FINANCIAL SERVICES OTHERS

FINANCIAL PERFORMANCE

6900

7000

7100

7200

7300

7400

7500

7600

2002 2003 2004 2005 2006

sales and operatingrevenue in billionyen

Net income in billion yen

0

20

40

60

80

100

120

140

160

180

2002 2003 2004 2005 2006

Segment wise revenue generated

Electronics – 66.5% Games – 9.7% Music – 3.3% Picture – 9.7% Financial service –

7.4% Others – 3.4 %

Products Electronics –

computers,digital cameras, camcorders, television & video, mobile phone, recording & storage media

Movies – sony pictures, MGM

Games – playstation

Music – sony BMG music

Financial service

Competitors Electronics- matsushita Inc. ,

philips, sonyo, samsung, compaq, dell, nikon, kodak, konica, JVC etc.

Games – microsoft, nintendo Music – universal, EMI Movies – universal, tristar pictures,

warner brothers, walt disney

future Planning to launch playstation 3 by end of this year Downsizing of CRT TV displays operations as demand

shift from CRT display to plasma and LCD panel displays. Restructuring plan related to reduction of staffing levels

and the disposal of certain long lived assets. Sony will continue to implement programs to reduce

headcount by streamlining business operations, including closer and consolidation of manufacturing sites, as well as headquarters and administrative functions.

They are expect their structural reforms are expected to achieve 200 billion yen reduction in cost by the end of fiscal year 2007.