Introduction of SONY Corporation

Sony Corporation commonly referred to as Sony, styled SONY /soni/, is a

Japanese multinational conglomerate corporation headquartered in Knan
Minato, Tokyo, Japan. Its diversified business includes consumer and professional
electronics, gaming, entertainment and financial services. The company is one of
the leading manufacturers of electronic products for the consumer and
professional markets. Sony is ranked 116th on the 2015 list of Fortune Global
500.(Wikipedia.com)
Sony Corporation is the electronics business unit and the parent company of the
Sony Group, which is engaged in business through its four operating segments
electronics (including video games, network services and medical business),
motion pictures, music and financial services. These make Sony one of the most
comprehensive entertainment companies in the world. Sony's principal business
operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures
Entertainment, Sony Interactive Entertainment, Sony Music Entertainment, Sony
Mobile Communications (formerly Sony Ericsson) and Sony Financial. Sony is
among the Worldwide Top 20 Semiconductor Sales Leaders and as of 2013, the
fourth-largest television manufacturer in the world, after Samsung Electronics,
LG Electronics and TCL.
The ownership or director of SONY Corporation is:
1-Osamu Nagayama
(Chairman of the Board)
2-Kazuo Hirai
(President and CEO)
There are also have branch in Malaysia and named it by SONY EMCS
Malaysia SDN BHD. Sony EMCS (Malaysia) Sdn. Bhd. manufactures
television, audio, video, and hi-fi products. Sony EMCS (Malaysia) Sdn.
Bhd. was formerly known as Sony Technology Malaysia and changed its
name to Sony EMCS (Malaysia) Sdn. Bhd. in June 2008. The company
was founded in 2004 and is based in Bandar Baru Bangi, Malaysia. Sony
EMCS (Malaysia) Sdn. Bhd. operates as a subsidiary of Sony Corporation
The size is conglomerate company and according the number of
employees that it have right now a until 31 March 2015 is 131,700 employees.
Sony Global Corporate Information". Retrieved 13 June 2015.
The product and services provided by SONY Corporation:
Products :
1-Consumer electronics: HD TV
2-Semiconductors
3-Video games: PS1,PS2,PS3,X-BOX

4-Media/Entertainment
5-Computer hardware
6-Telecom equipment: mobile phone and others
Services :
1-Financial services, insurance, banking, credit finance and advertising agency

Throughout the 20th century, the pace of technological advancement has

increased dramatically. The digital revolution, now upon us, will see further
massive steps forward. This case study looks at the ways in which Sony has been
able to stay at the leading edge of the new technologies.

Sony Corporation is the leading manufacturer of audio, video, communications

and information technology products for the consumer and professional markets.
Its music, pictures and computer entertainment operations make Sony one of the
most comprehensive companies in the world. Founded in 1946, Sony has been at
the forefront of technological advances and now has 1,041 consolidated
companies, 65 affiliated subsidiaries and employs more than 177,000 people
throughout the world. Sony recorded world wide sales in excess of $56 billion in
the year ending March 1999.
Sony has developed a wide product portfolio which includes goods that have
become integral parts of modern lifestyles; the first Japanese magnetic tape and
tape recorder in 1950, the transistor radio in 1955, the first all-transistor
television set in 1960, the first colour video cassette recorder in 1971. In 1979,
Sony launched the Walkman Personal Stereo, which has sold 150 million units
world wide. It is the single best selling consumer electronics product ever and
has become a way of life for a generation. The compact disc and MiniDisc
systems have radically changed the music industry and, more recently, Sony has
introduced DVD-video. Sony has not only been a market leader in consumer
electronics, but has also become a major player in the worlds of professional
broadcasting, telecommunications, PC technology and now the Internet. The
positioning of the Sony brand products has been equally important, with the
accent on quality and innovation.

Today the world of consumer electronics can effectively be divided into four
separate markets,
the entertainment world of music and games the personal computing sector
communications with cellular telephones the wired world of television, video and
cable set top boxes.
These four market segments are rapidly merging as digital technology
dramatically increases the potential in each area. For example, television has, to
date, been largely limited in terms of content and application, but it is essentially
just a box of electronics. Many of the latest televisions have the capability of

Internet access and many experts believe that the future will see the integration
of the personal computer and television. Sonys aim is to create a network
environment within the home from which consumers can access specific video or
audio selections whenever they want.

2-Source of SONY`s innovation and examples:

Before we talk about the source of SONY innovation according the Drucker
1985:Kuratko and Hodgetts,2004) there are four sources of innovation for
enterpreneurs:
1-Unexpected events
It happens when the enterpreneures get the ideas out from their expectations or
from unexpected events and with that the enterpreneurs can apply their
expertise to new application or formula.
2-New-Knowledge concepts

3-Changes of Demographics

4-Process Needs

The third source of innovation as per above is Changes of Demographics is

the main source of SONY`s innovation in developing more attractable of their
products,for example:
1-Anticipation with innovation
In order to harness the potential of digital technology for the purposes of
providing enjoyment to people around the world, Sony has developed a concept
called Digital Dream Kids. Sony wants to identify the dreams of the young,
digitally literate generation of consumers and translate them into unique, fun
products and exciting applications, supplying products that fulfil the dreams of
their customers. To achieve this requires a seamless merging of content,
hardware and technology. This concept has become central to the corporate
strategy for Sony.
2-Contribute to sustainable the life style of society.

Sony harnesses new technologies to contribute to the realization of sustainable

lifestyles and address key issues of importance to society.
As an example, Sony's Entertainment Access Glass provides closed caption
viewing and audio playback for hearing and visually impaired patrons. With this
glasses, utilizing unique its holographic technology, users can see closed caption
text seemingly superimposed onto the movie picture they're watching on
screen.In addition, for the visually impaired, audio data can also be transmitted
to glasses' receiver box. This solution helps both the people with hearing
difficulties and visual impairments enjoying movies more than ever before.

3-The digital revolution

The television has done more to shape the way we live our lives than most 20th
century inventions. Television is now at the beginning of a digital revolution,
which will transform the medium over the next decade. Until 1998, television
pictures have only been broadcast using an analogue system, this means using
radio waves to transmit the signal. Not only does this use up a large amount of
the radio spectrum, but also these waves are easily distorted, causing
interference and fuzzy pictures.
Digital television uses the same language as computers and compact discs,
breaking the information to binary bits, a series of ones and zeros, which are
then transmitted to the television.
4-Partnerships Ideas include in the second source of innovation as
above in new knowledge implementation.
A series of business alliances and partnerships with both computer and
broadcasting companies have strengthened Sonys position within both these
markets. Sony helped to pioneer the development of digital formats for audiovisual products, starting with the compact disc. It is now pushing forward with its
mission to consolidate the audio-visual and information technology industries. Its
product mix has placed the company in a unique position to be able to do this.
All future product development has to conform to Sonys Video Audio Integrated
Operation (VAIO) strategy, with the aim that all products brought to the market
place will not only be compatible with each other, but that, in time, can become
one. Connectivity brings much greater flexibility than the traditional stand-alone
products. For example, the new Sony digital camcorders have an interface to
allow the downloading of images directly onto the PC for editing. In June 1999,
Sony launched the WEGA Digital flat Widescreen television that includes an array
of extra programming to enhance the potential of the set and state of the art

digital picture and sound quality. The digital television is being developed so that
in the future it will meet all the consumer needs, a one-stop entertainment shop.
5-Progression and pioneers of the market
The pace of technological progress has forced fundamental changes on the
corporate structure, with Sony Corporation adopting a horizontal, rather than
vertical organisational structure for the first time in its fifty year history. This was
designed to speed up decision making and market responsiveness. Sony has had
to restructure all ten of its individual product companies so that they can adopt
common platforms using the PC technology. This is a long-term strategy and the
success cannot be measured in short-term market shares. As Nobuyuki Idei, the
President of Sony, said in 1995 The digital revolution will shake out the total
business platform so that brand image and production power and even the best
technology will not be enough. As the information and digital revolution spreads,
Sony will continue to change dramatically.

3- Barries of SONY`s innovation

a)The increasing in greenhouse gas emissions from the factory as
manufactrung industries
In addition to taking steps to lower greenhouse gas emissions from its operations,
Sony is developing energy-saving products and IT technologies that help reduce
CO2 emissions from Sony products during use by customers but the statistics is still
lower because the other products still gave the higher greenhouse gas or CO 2.
The other hands Sony has developed digital cinema camera since 2000. It
contributes not only the reduction of CO2 emissions but efficiency in creating the
movie itself. Sony supports the implementation of digital cinema in the theater, too.
(www.sony.net)

b) To fulfil the design that requested by society or in other words is

Personal or Individual Behaviour
Sony pursues a variety of design-based initiatives that help solve problems faced
by society and take user diversity into consideration.It also happens because the
attiude of many home appliance user that more prefer the traditional or fear to
use more technology and modern products.According text book of OUM-MPU2223
pg.34 the barriers to innovation could be derived from personal or society like:
1-Fear of changes
2-Fear of failure

3-Fear of trying and so on

c) The competitive market place with other electronic manufactures like
Panasonic,Toshiba and etc
It happen because they produced more attractive design products and more
affordable to the consumers.The mentality of the society right now despite the
economical recession is they more prefer the cheap and the quality products
only.
These new ideas must then be screened and evaluated from both production and
financial perspectives. Successful ideas will be developed in the laboratory and
undergo thorough test marketing before they can be launched if this step is
oerlap it will make the product become loses to the company.
d) The difficulties to reduce the cost of production.
All Sony factories are driven by a desire to improve quality and reduce cost,
employing lean production and just in time manufacturing techniques to
maintain a competitive cost advantage and therefore lower prices

4- Recommendation of improvement in innovation

among SONY employees

a)Continuous improvement or KAIZEN spirit

The key to success in this challenging and highly competitive technological
marketplace is effective innovation and the continual development of new
products. All new product development has to go through a number of stages.
New products have to be conceived, a process of imagination, creativity and
inspiration.

b)Training & Talent Development

The development and vitality of its employees drive Sony's dynamic growth.Sony
recognizes its people as its most important management asset and the growth of
its people as a crucial aspect of its management foundation. Sony strives to
further enhance motivation and encourage personal growth for its employees
through on-the-job learning, as well as through access to a variety of programs
designed to enhance individual abilities and skills and tailored to local needs.
As a company that does business in a variety of countries and regions, Sony
recognizes the importance of cultivating future business leaders with a global

perspective and diverse cultures. Accordingly, Sony is implementing initiatives

aimed at fostering such employees and bringing their capabilities into full play.

c)Increasing more sharing with society to know their feedback and the
rhytm and style of their demand toward the latest technologies.

To support the company and remain competitive, various solutions are being
introduced spanning wearables, smart home and entertainment technology and
being judged by crowds of potential customers. Sonys existing presence in
pivotal events like SXSW Interactive and CES enables them to gauge public
opinion and sentiment and factor that into their product development pipeline.

Other startegies that SONY can take like this:

1-Recognise the every empolyees abilities especially from the R&D
( Research and Development) Department or Market Research
Department..
It can be happens with the do the small competition among their employees
tosend the design whatever product that related to the company and the winners
will be give some prizes to motivate them for more innovative and contribute
more fresh ides to the company. Market research is crucially important
throughout these processes, both of the potential market and of the product, but
often with such innovative products as the PlayStation and Walkman, Sony is
anticipating a desire that consumers have yet to appreciate the products.

2-Change the SONY organisational culture.

The orginasiotal culture in SONY must be more friendly and more innovative
condition to make sure their employees more creatively in contribte the fresh
ideas to the top management.

3-To give motivation speech frequently to the employees and keep in

track the slogan of SONY in every employees
Leading the digital revolution through innovation is the main moto of slogan of
SONY Corporation that mst be palnted in ebery employess to droven them more
innovative and competative.

Summaries and Conclusion

The impact of technological change on a firm is usually considered an external
influence. By taking such an essential role, driving the markets forward through
its innovative research and development, Sony has been able to become a
proactive force, rather than having to react to changes. By internalising much of
the technological advances, Sony put itself in a strong position to fulfil its goals
and objectives. However, Sony has only been able to achieve this by being
prepared to change and adapt from within.
The sources of innovation in SONY can come from their employees itself and
feedback from the society.So continues development is one the stesp to
overcome the barriers of innovation and it alsomust be taken to improve more
innovation of their product inline with financial budget to avoid any loses of new
product .
It also to make sure the product of SONY is more affordable and more quality
with the reduces cost of production and fulfil the society requestion.
So the conclusion is the innovation is very imporatant especially like the
company in manufacturing field to make sure the sustainability in this market
and still acceptable by society.The failure take any innovation can drive them to
the loses or in more danger situation like bankcrupcity or close down the

factory .We can look many Japanese factory right now close down their factory
branch in Malaysia like KODAK and others.The failure of KODAK is they not bring
the innovation of their camera productand then ot cant compete with other
competitors like SONY itself already towards more the Digital camera and more
quality picture can be produced and this steps also be taken by the others
company such as CANON and so on.
The other company that have failure when they not take any step to innovation
is NOKIA .The CEO`s of NOKIA said We didnt do anything wrong, but somehow,
we lost.
Such an ending is devastation considering Nokia used to own a large portion of
the smartphone market share before the iPhone came out in 2007.
In a Linkedin blog post by Ziyad Jawabra, he notes that while Nokia technically
did nothing wrong, it was their refusal to change and learn new things that
ultimately lead to their demise. Jawabra wrote:
They missed out on learning, they missed out on changing, and thus they lost
the opportunity at hand to make it big. Not only did they miss the opportunity to
earn big money, they lost their chance of survival.

(2800 words)

Referrences:
1-www.sony.com
2-www.wikipedia.com
3-www.sony.net