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SONY C O R PO R AT I O N .

AG E N DA ‡ Company History ‡ Founder : Akio Morita ‡ Corporate Policy ‡ Strategy & Organization ‡ Current Initiatives .

" meaning ³little man´) ‡ 1968 .Tokyo Telecom Engineering ‡ 1950 .First transistor radios ‡ 1957 ." Latin for "sound.Intro of Trinitron color TV ± explosive growth ‡ 1979 ." and "sonny.First Japanese tape recorder ‡ 1955 .Company History ‡ 1946 .First pocket-sized radio ‡ 1958 .Walkman personal stereo .Name change to Sony (from "sonus.

‡ 1989 .Sony Playstation released to great success.Launched Wega flat-screen TV ‡ 1999 .5 billion.Major Producer of computer disks/ floppies ‡ 1988 . Sun Microsystems to develop networked entertainment products ‡ 1999 .Walkman with MP3 capabilities . ‡ 1994 .Company History ‡ 1980¶s .Bought CBS Records for $2 billion.JV with Philips. ‡ 1997 .JV with Philips (inventors of the CD) to make Super Audio CD ‡ 1998 .Bought Columbia Pictures for $4.

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

‡ Co-chair of various conferences. rather than their prior academic background and history ± a revolutionary concept for Japan. and the World Economic Forum in Davos. . The Trilateral Commission.S Business Council. ‡ 1966 ³Never Mind School´ emphasize the capabilities of individuals.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. ‡ Strong belief R&D leads to new ways to meet customer needs. including the Japan-U.

Akio Morita: The Sony man who put Japan on the corporate map passed away in October 1999. Economic Relations Group. .Morita chosen as one of Time magazine¶s 20 most influential business people of the 20th century .Founder: Akio Morita ‡ Instrumental in easing trade friction with the U.S by playing leading roles in the Keidanren (Japan Federation of Economic Organizations).S.the only Asian member on its list. ‡ 1998 . the Japan-U.

Procurement Policies Reflect Corporate Policy ‡ Open Doors and Fairness ‡ Quality and Competitive / Reasonable Price ‡ Delivery Assurance and Services ‡ Optimum Procurement ‡ Technology Development ‡ Suppliers' Management .

and sales .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. distribution. production.

Sony Business Units ‡ Electronics: ‡Audio. Sony Classical.Video. Televisions Information and Communications. Sony Discos. ‡ Sony Computer Entertainment: ‡Hardware and related software ‡ Sony Music Entertainment: ‡Sony Music Entertainment Inc.: Columbia Records.Sony Disc Manufacturing. and Sony Music Nashville ‡Sony Music Entertainment Japan: Sony Records and Epic Records .

production. acquisition and distribution home video .Sony Business Units ‡ Sony Pictures Entertainment ± ‡ ‡ ‡ ‡ ‡ motion picture .S. Inc. acquisition and distribution television ± programming. Ltd. .. Sony Trading International Corporation Sony Broadcast Media Co. U.production. and Germany. Other local entertainment businesses in Japan.acquisition and distribution television broadcasting operation of studio facilities Blue Streak Wheel of Fortune Big Daddy ‡ ‡ Sony Life Insurance Other: ‡ ‡ ‡ ‡ Sony Finance International.

872 10.074 63.Sony Business Units Region Japan US Europe Other Regions Total $ (Millions) 20.124 13.012 19.082 % of Total 32 30 22 16 100 .

CVDs. and CD-Roms.Interesting Current Initiatives ‡ E-Commerce ‡ ‡ SonyStyle. in online game distribution. ‡ Video-Game Machines and Console Software ‡ ‡ Sony¶s Playstation 2 (PS2) is claimed to be the first next-generation game console. . In February. This system can play DVDs. unveiled an alliance with game software makers Sega Corp. Sony Corp.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. and Namco Ltd.

Artificial Intelligence ROBOT ‡ As close to human as possible ± has emotions and instincts .Interesting Current Initiatives ‡ AIBO.

who recently passed away.com? . 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.Questions to Ask ‡ PlayStation2 was an instant success with demand clearly surpassing supply. 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.