Sony accelerates transformation
19 November 2009
Under the leadership of its new executive management team established earlier this year, Sony has reformed its organisational structure in order to bolster profitability and transform its operations.
As a result, approximately 80% of Sony's targeted 330 billion yen of group-wide cost reductions for the current fiscal year ending 31 March 2010 compared to the previous fiscal year have been achieved in the first half of the current fiscal year. Furthermore, Sony is now positioned to launch a succession of products from the end of this calendar year and into 2010.
In order to permit further growth and continue to enhance profitability, the company is implementing additional transformation measures centring on the following four initiatives:
• Target consistent profitability in core hardware businesses (TV, game and digital imaging)
• Provide new user experiences integrating innovative hardware, software and services
• Reach out to new customers and develop new geographic markets
• Increase Sony's focus on environmentally conscious products and processes
Through these measures, Sony targets an annual 5% operating income margin and a 10% return on equity by the end of the fiscal year ending 31 March 2013.
Details of these are as follows:
• Target consistent profitability in core hardware businesses (TV, game and digital imaging)
• Regain the leading market position in LCD TV business
• Target returning the LCD TV business to profitability in the fiscal year ending 31 March 2011 and achieving a 20% worldwide market share on a unit basis in the fiscal year ending 31 March 2013
• Create a new revenue model beyond conventional TV business models
• Introduce ‘evolving’ TV that delivers new applications over the network
• Develop new generation displays using proprietary Sony devices
• Strengthen profitability of game business
• Target returning to profitability in the fiscal year ending 31 March 2011
• Increase revenues by expanding hardware/software sales and enrichment of PlayStation Network services
• Improve profitability in the game business by cost reduction and other measures
• Maintain leading position as the number one digital imaging brand in the world
• Strengthen business through outstanding product differentiation and cost competitiveness based on key devices such as image sensors and imaging engines
• Provide new user experiences integrating innovative hardware, software and services
• Network-connected products and services
• Further expand Sony's networked service business by utilising the rapidly growing PlayStation Network services and by integrating attractive hardware, including new mobile products and other consumer electronics, with networked services
• Target annual revenues of 300 billion yen from networked service business by the end of the fiscal year ending 31 March 2013
• Strengthen and expand networked mobile business
• Strengthen collaboration with Sony Ericsson Mobile Communications
• Accelerate rollout of e-book (hardware and content) business
• Expand Sony's line-up of network-connected products
• Target installed user base of 350 million units by the end of the fiscal year ending 31 March 2013
• Expand 3D-related product businesses in the fiscal year ending 31 March 2011
• Engage Sony's group-wide assets from content production to display devices and game to make available a wide variety of attractive content and hardware, and drive the creation of new 3D markets
• Launch 3D-related products for the home, including TV, Blu-ray Disc players/recorders and 3D gaming on PlayStation3 in the fiscal year ending 31 March 2011
• Provide solutions for 3D content production, distribution and theatrical projection to lead the field in broadcast and professional businesses
• Target revenue from 3D-related products of more than 1 trillion yen (excluding content) in the fiscal year ending 31 March 2013
• Growth strategies for lithium-ion battery business
• Secure high profitability in existing businesses
• Analyse possible entry into new business domains (storage/e-Vehicle battery)
• Reach out to new customers and develop new geographic markets
• Strengthen direct marketing strategies
• Promote Sony Group's unified brand message ‘make.believe’ globally
• Continue to invest in emerging markets, including BRIC countries, to develop new customer bases.
• Increase Sony's focus on environmentally conscious products and processes
• Target absolute 30% reduction in greenhouse gas emissions from Sony Group sites in CO2 emissions by the end of the fiscal year ending March 31, 2016, compared to the level of the fiscal year ended 31 March 2001
• Target 30% reduction of power consumption per product by the end of the fiscal year ending 31 March 2016, compared to the level of the fiscal year ended 31 March 2009
• Target zero environmental footprint throughout the lifecycle of Sony's products and business activities as long-term goal
Sony has been a member of the WWF Climate Savers Programme since 2006, organised by WWF International to mobilise companies to cut greenhouse gas emissions. The above mentioned-targets were reviewed and approved by the WWF as a renewal of the present Climate Savers Programme commitments.
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