With losses over $450 million for the current financial year and CEO salary cheque of $ 4.5 million plus 500,000 stock options, is the Sony shine losing its sheen? Compare this with a total payment of 957 million to its 23 Directors by the competitor Panasonic for 2010 and the comparison seems one of giant versus dwarf! Important concerns have raised on Sony's ethical stand and Corporate Governance compliances. Sony is also apparently losing the market share to its investors. In this gloomy scenario, the Sony investors are compelled to ask what is the silver lining in this dark cloud. Loses for the current year notwithstanding, Sony is expected to earn a profit of 160 billion yen for the coming year. Sony presently makes Bravia TVs, Valo PCs and PS game consols. Its future success greatly depends on the success of is 3D TV and Motion controlled gaming consoles. Sony still has a good brand equity and is synonymous with quality in the minds of its customers. The future for Sony now depends on its strategy. According to industry experts, Sony's ability to transform its present vertical structure into horizontal business as successfully accomplished by Apple; by leveraging from its strong brand power will determine the directions of the wind.
In the following blog, we talk in multiple languages (English, French and German) about competition and strategy from an inter-disciplinary perspective by taking inputs from business strategy, law and economics. I am particularly interested in ICT, telecommunications, Industry 4.0 and the impact of convergence in ICT with other sectors such as pharmaceuticals and energy.
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