Sony has disclosed its new business strategy in which their aim is to make a huge profit of minimum $4.3 billion at the end of March, 2017. Sony has planned for such a big three year strategy so as to overcome the losses it had faced and to make a huge profit. Sony had organized a corporate meeting in which it stated that different divisions would be given a bid so as to make 500bn yen profit in the year 2017.
Sony has separated the business into three parts:
Sony has classified its business into three major parts: Stable profit generator, growth drivers and areas focusing on volatility management. Pictures, devices, music and game & network services fall under the category of growth drivers. These are the major areas where the Sony tends to improve growth in the coming year. Under devices, Sony will be more focused towards improving CMOS image sensors and will also be creating some new sensing technologies. In games services, Sony will have its focus on enhancing the platform of playstation. Profit will be raised in the business of motion pictures under the Pictures category. In the music category, business model will be enhanced in such a way that it will help to raise the new artists and streaming music market.
Under imaging category, Sony will emphasize on making more and more profit by developing innovative marketing strategies and attractive products with amazing features. Sony has always delivered quality products such as high resolution cameras, audios, etc. and it would keep delivering quality products to keep the profit stable.
Sony is also offering financial services such as banking, life insurance, nursing care, non life insurance, etc. that is targeted to grow and make more and more profits. It is expected to provide quality services that a customer expects from a company.
Sony is expected to achieve return on equity of more than 10% of its current value and expected to make lots of profits, even more than 500 billion yen. Since Sony has divided its business into different sectors, so it is establishing different companies for the different sectors. Firstly, Sony is going to separate electronic unit from Sony Corportation. Network and games services already run as self sustained companies. A Business unit of TVs and visuals are transferred to a different company Sony Visual Products.
Reason to adopt new business strategies:
The Main reason behind separating companies for different business sectors is to keep balance and manage the every operation carefully and manage the each business flexibly. Tomoyuki Suzuki will take care of Device sector of Sony, Michael Lynton will take care of Pictures & Music sector, Andrew house will be responsible for Games & Network Services, Katsumi Hilara will manage Financial Services, Hiroki Totoki will be responsible for Mobile Communication. For imaging products, Shigeki Ishizuka is appointed while for Home & entertainment sector, Ichiro Takagi has been appointed.
So, this big and efficient business strategy of three years is expected to make large profits for Sony. So, if it follows the above business strategy well, then it will surely overcome all the huge losses it faced in the past.