SONY

C O R PO R AT I O N
Berrak Dogruer Mazen Ferzly Hiep Nguyen Douglas Roach Rafik Ward

AGENDA Company History

Founder : Akio Morita

Corporate Policy Strategy & Organization

Current Initiatives

Company History 1946 - Tokyo Telecom Engineering 1950 - First Japanese tape recorder 1955 - First transistor radios 1957 - First pocket-sized radio 1958 - Name change to Sony
(from "sonus," Latin for "sound," and "sonny," meaning little man)

1968 - Intro of Trinitron color TV explosive growth

1979 - Walkman personal stereo

Company History 1980s - Major Producer of computer disks/ floppies 1988 - Bought CBS Records for $2 billion. 1989 - Bought Columbia Pictures for $4.5 billion. 1994 - Sony Playstation released to great success.

1997 - JV with Philips (inventors of the CD) to make Super Audio CD

1998 - Launched Wega flat-screen TV

1999 - JV with Philips, Sun Microsystems to develop networked entertainment products

1999 - Walkman with MP3 capabilities

Company History 2000 - Formed PlayStation.com games/software online 2000 - Restructured all entertainment units under Sony Broadband Entertainment 2001 - JV Sakura Bank and JP Morgan Chase for online bank.

Founder: Akio Morita Groomed to take over 14-generation family Sake business

Strong entrepreneurial spirit: Tokyo Telecom Engineering

Revolutionary thinking: Brand is lifeblood of company success Listed Sony on NYSE in 1970.

1966 Never Mind School emphasize the capabilities of individuals, rather than their prior academic background and history a revolutionary concept for Japan. Strong belief R&D leads to new ways to meet customer needs.
Co-chair of various conferences, including the Japan-U.S Business Council, The Trilateral Commission, and the World Economic Forum in Davos.

Founder: Akio Morita Instrumental in easing trade friction with the U.S by playing leading roles in the Keidanren (Japan Federation of Economic Organizations), the Japan-U.S. Economic Relations Group. 1998 - Morita chosen as one of Time magazines 20 most influential business people of the 20th century - the only Asian member on its list.

Akio Morita: The Sony man who put Japan on the corporate map passed away in October 1999.

Procurement Policies Reflect Corporate Policy

Open Doors and Fairness

Quality and Competitive / Reasonable Price Delivery Assurance and Services

Optimum Procurement
Technology Development Suppliers' Management

Strategy and Organization

Continue to focus on communications and home electric appliances, but also content and services
Vertically integrated business Vision is to become a broadband entertainment company CEO Idei Nobuyuki wants Sony to be wherever people gather (Internet)

Product-Market Strategy: Apply IT to product design, production, distribution, and sales

Sony Business Units Electronics:

Audio,Video, Televisions Information and Communications.

Sony Computer Entertainment:

Hardware and related software

Sony Music Entertainment:

Sony Music Entertainment Inc.: Columbia Records, Sony Classical, Sony Discos,Sony Disc Manufacturing, and Sony Music Nashville Sony Music Entertainment Japan: Sony Records and Epic Records

Sony Business Units

Sony Pictures Entertainment
motion picture - production, acquisition and distribution

television programming, production, acquisition and distribution

home video - acquisition and distribution television broadcasting

operation of studio facilities

Blue Streak Wheel of Fortune Big Daddy

Sony Life Insurance Other:

Sony Finance International, Inc.

Sony Trading International Corporation Sony Broadcast Media Co. Ltd.

Other local entertainment businesses in Japan, U.S., and Germany.

Sony Business Units

Region
Japan
US Europe Other Regions Total

$ (Millions)
20,012
19,124 13.872 10,074 63,082

% of Total
32
30 22 16 100

Interesting Current Initiatives E-Commerce

SonyStyle.com in Feb 2000

Strategy reflects its desire to reduce the role of the big discounters as middlemen and gain greater control over prices

Car Navigation Systems

7% of worldwide market These systems incorporate sophisticated technology, including webaccess and advanced voice recognition.

Video-Game Machines and Console Software

Sonys Playstation 2 (PS2) is claimed to be the first next-generation game console. This system can play DVDs, CVDs, and CD-Roms. In February, Sony Corp. unveiled an alliance with game software makers Sega Corp. and Namco Ltd. in online game distribution.

Interesting Current Initiatives AIBO- Artificial Intelligence ROBOT

As close to human as possible has emotions and instincts

Questions to Ask PlayStation2 was an instant success with demand clearly surpassing supply. Some say it is because of inaccurate demand forecasts while others suggest that it was an intentional strategy. What is you take on this? How is your electronic division and music division responding to concerns over MP3 format piracy issues and your secure yet not very popular format? How has the vision of your founder, who recently passed away, been passed on to the new management team at Sony? How has the dissatisfaction of some CD retailers over your strategy to sell directly to consumer affected your distribution strategy via SonyStyle.com?