Sony Corporation: SWOT Analysis & Company Profile by BusinessReview

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									Sony Corporation

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Sony Corporation: SWOT Analysis &
Company Profile


Reference code: BRTC008CP10-Q4

Published: Jul 2010




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Sony Corporation - SWOT Profile                                                     Page 1
Sony Corporation

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Sony Corporation - Company Overview

Sony Corporation (Sony) is a Japan based electronics products manufacturing company. It is engaged in designing,
developing, manufacturing, and selling audio and video products, information and communication products, televisions,
semiconductors, and host of other electronic components. The company operates through six reportable segments
namely, Consumer Products and Devices; Networked Products and Services; B2B & Disc Manufacturing; Music; Pictures;
and Financial Services. The company, along with its subsidiaries, has major operations in Japan, and across many
countries in North America, Europe and Asia. Sony has its wide service footprint in about 200 counties, worldwide. The
company is headquartered in Tokyo, Japan.


Financial Performance

The company reported revenues of (Yen) JPY 7,213,998.00 million during the fiscal year ended March 2010, a decrease
of 6.68% from 2009. The operating profit of the company was JPY 28,826.00 million during the fiscal year 2010, whereas
the company reported an operating loss of JPY 232,210.00 million during 2009. The net loss of the company was JPY
40,802.00 million during the fiscal year 2010, as compared to a net loss of JPY 98,938.00 million during 2009.




Sony Corporation - Key Facts

Sony Corporation, Key Facts

                                  1-7-1 Konan, Minato-ku, , 108-
                                                                    Ticker Symbol, Stock       6758 (The Tokyo Stock
Corporate Address:
                                  0075, Japan                       Exchange                   Exchange)



Telephone                         + 81 3 67482111                   No. of Employees           170,200



Fax                               + 81 3 54482244                   Financial Year End         March



URL                               www.sony.net                      Revenue (in JPY Million)   7,213,998.00


                                  Alternative Energy , Clean
Industry                          Technology , Technology and       Revenue (in USD Million)   77,056.16
                                  Communications


Locations                         Japan, Singapore, United Kingdom, United States

Source: Annual Report, Company Website, Primary and Secondary Research




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Sony Corporation - SWOT Profile                                                                                        Page 2
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Sony Corporation - Business Description

Sony Corporation (Sony) is a Japan based electronics products manufacturing company. The company is engaged in
designing, developing, manufacturing, and selling of electronic equipment, instruments, and devices, games, and
entertainment products. The company is also engaged in offering select financial services, and has presence in the music
industry, offering albums. The company along with its subsidiaries has major operations across North America, Europe,
and Asia. Sony extends its customer support services across 200 counties around the globe. As of March 31, 2010, the
company employed a workforce of 167,900 people.

The company operates through six reportable segments namely, Consumer Products and Devices; Networked Products
and Services; B2B & Disc Manufacturing; Music; Pictures; and Financial Services.

Under the Consumer Products and Devices segment, the company develops and manufactures consumer electronic
products such as televisions, digital cameras and camcorders, home audio and home video, semiconductors and
components. The segment also includes the equity results of S-LCD business. For the fiscal year ended March 2010, the
segment generated revenues of JPY 3,227,712 million, a decrease of 19.9% over the previous year.

Under the Networked Products & Services segment, the company develops, produces and markets its game consoles
and PCs and other networked products. The segment includes the businesses of Sony Computer Entertainment, VAIO
personal computers, Sony Media software and services, and mobile products including Walkman digital music players.
The company’s major products in this segment include Playstation series of gaming hardware. Through its Station.com
segment, the company offers Ever Quest series, Planet Side, and the Matrix Online. The company also introduced
PLAYSTATION Portable (PSP) platform in this segment. For the fiscal year ended March 2010, the segment generated
revenues of JPY 1,575,847 million, a decrease of 10.2% over the previous year.

The B2B & Disc Manufacturing segment comprises the B2B business as well as Blu-ray Disc, DVD and CD disc
manufacturing. The B2B business includes broadcast- and professional-use products. For the fiscal year ended March
2010, the segment generated revenues of JPY 504,233 million, a decrease of 10% over the previous year.

Under the Picture segment, the company is into motion picture production and distribution; television programming and
syndication; home video acquisition and distribution; operation of studio facilities, development of new entertainment
technologies, and the distribution of filmed entertainment. For the fiscal year ended March 2010, the segment generated
revenues of JPY 705,237 million, a decrease of 1.7% over the previous year.

The Music segment comprises the business of Sony Music Entertainment and Sony Music Entertainment (Japan) Inc. It
also includes the activities of Sony/ATV Music Publishing LLC, a 50% owned US-based joint venture in the music
publishing business. For the fiscal year ended March 2010, the segment generated revenues of JPY 522,616 million, an
increase of 35% over the previous year.

The company’s Financial segment operates through Sony Financial Holdings Inc. (SFH). SFH functions as a holding
company overseeing Sony Life Insurance Co., Ltd., Sony Assurance Inc., Sony Bank Inc, Sony Bank Securities Inc. and
Sony Finance International, Inc. The aim of this holding is to increase the synergies among these businesses. This
segment offers various insurance schemes, non-life insurance products, asset management and other financial services,
credit card, e-payment processing and leasing operations. For the fiscal year ended March 2010, the segment generated
revenues of JPY 851,396 million, an increase of 58.2% over the previous year.

The company also offers Internet-related service, a contact less IC card business and an advertising agency business in
Japan. For the fiscal year ended March 2010, other activities generated revenues of JPY 261,851 million, a decrease of
17.8% over the previous year.

The company is continuously focused on technological innovation towards maintaining its market leadership position. It is
engaged in research process in relation with a dye-sensitized solar cell that employs an electrochemical mechanism and
photosensitive organic dyes to convert light energy to electrical energy. These solar cells do not need a large vacuum
process machine in fabrication in comparison with conventional silicon-based solar cells. It is also engaged in research
regarding generation of electricity by a bio battery from sugar utilizing enzymes. For the fiscal year ended March 2010, the
company spent JPY 432,001 million on research and development activities.

Geographically, the company classifies its operations under four segments namely, Japan, US, Europe, and Other Areas.
For the fiscal year ended March 2010, Japan contributed 29.1% towards the company’s total revenues while US, Europe
and Other Areas contributed 22.11%, 22.8% and 25.99%, respectively.

Recently, the company announced the launch of Sony Internet TV, the world's first TV to be based on the Google TV
platform. It is scheduled to first launch in the US in the fall of 2010 and would feature both a standalone TV model as well
as set top box-type unit that would incorporate a Blu-ray Disc drive.

In June 2010, as a part of its initiatives to improve manufacturing efficiency and profitability, the company announced its
plans to discontinue production at its Hungarian manufacturing site in Gödöllö, Hungary. The facility manufactures Blu-ray
Disc players and DVD recorders. Its operations are scheduled to cease by December 2010 and would be transferred to
Sony's Kuala Lumpur, Malaysia manufacturing site. Earlier in March 2010, the company announced its plans to sell a
liquid crystal display (LCD) plant in Japan to Kyocera Corporation. Also in February 2010, the company announced the


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Sony Corporation - SWOT Profile                                                                                    Page 3
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closure of its Alabama plant by September 2010 a
								
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