Sony's Troubles

Here I was thinking that Sony was the dominant electronics company that which is almost invincible in its stature. But the Japanese firm is more akin to a - to quote Nixon - "big, pitiful giant" than an inspiring 21st century technology-savvy firm.

In 2008, Sony recorded its first lost ever loss in 14 years at $3 billion. And, as The Economist [which the article borrows heavily from] further reports, nearly all its division are unprofitable.

For instance, Sony LCD TVs are an enviable possession and the company is the world's second-largest produced of such monitors. But for the last five years, it has sold every LCD at a loss. Why? I guess just poor and inefficient management.

The gaming division with the once-monopolistic Playstation used to be the firm's star and the division's earning would often carry the entire company. Not any longer. Sony games is expected to report a loss for 2008 in contrast to Nintendo which made over $6.1 billion last year due to its highly popular Wii.

The mp3 division is in even worst shape. It has been demolished by Apple's immensely popular iPod and iPhone, along with the compliment iTunes. Sony's effort to even come close to rivaling Apple's market share have all feel flat.

The cell phone division - Sony Ericsson - is also a small player as the firm has a limited supply line that is either low quality or expensive "smart" phone, leaving out middle-buys who then turn to rivals. The iPhone has probably hurt Sony "smart" phones sales as well.

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[Not if it doesn't revamp itself. Sir Howard Stringer.]

Sony used to be a pioneer with its Walkman and the Playstation. And it still is in many ways with the company's LCD TVs, digital cameras, and Blu-Ray disc. And Playstation sales are weighed down not because the consul is inferior to the Wii, on the contrary, but PS3 is simply too expensive right now. But the firm is too tied down to a Japanese extra-cautious model of business that moves too slow in a world with an ever-increasing myriad of cutting edge firms. Sony needs to be revamped and made into a more aggressive company. HP itself was once brought down by its own weight acquired in early years of growth and dominance, the firm become almost shiftless. But under new management, HP brought out a new more modern product line and has replaced Dell as the world's #1 PC maker. But HP is headquartered in fast-moving America [and in Silicon Vally at that], Japanese business culture just may not have the stomach for the types of changes HP enacted.

But Sony does have a new [relatively] boss who is of Welsh origin and once ran America's CBS; a major network. Although Sir Howard Stringer recognizes that timid nature of Japan - “I’ve got to respect the country that I’m in," he states - he still intends to "push them as far as I can.”