Original: Sony reform first step, split non-core business connection: Computer World News Commercial Weekly Written, Sony's New CEO and President Howard Stelinger faces a powerful pressure - shareholders ask Sony to increase profit, and Demolition and core business (merged consumer electronics, movies, music, game software is not related to other business. This is because the current Sony's mixed business model does not work, and the Sony Group's profit is expected to be 31%, only $ 69 billion in its $ 69 billion in income of $ 69 billion in its financial year. The median is only 1.5%. In contrast, competitors Samsung Electronics make Sony Khan. As of December 2004 last year, Samsung Electronic sales was $ 56 billion, but its profit reached 10 billion US dollars.
Financial business and core business conflicts
According to Merrill's data, this year's Sony Financial Sector is expected to bring $ 5509 million operation profit. This profit is almost comparable to the Sony movie business. It is far better than a loss of $ 288 million in the consumer electronics department. But the Japanese Insurance Market will begin to transform, and the competition in this market will be fierce. These competitors are recovering, and competition in this field will increase, while Sony does not have sufficient funds and them around, and there are other opponents from abroad, such as American family life insurance companies have sufficient funds, with these opponents strengthen The offensive of the Japanese market, Sony Life Insurance Company will undoubtedly face a more serious challenge.
At the same time, some analysts said that the financial business is also scattered with the high level of the company's attention to the core business. Naoko Nemoto from Standard & Poor's Insurance Analyst said that I didn't see how many synergies between Sony Financial Business and their core services.
Since the company's own resources are limited or less, in the allocated resource allocation, it is possible to lead to sustained support for each intended resource, and the role of diversified risks "is not bright. Western bright ", maybe become" Eastern and Western Unlighted "diversified traps. Moreover, diversified success can be extremely small. The world's first consultation company McKinse has had such statistical data, through analysis of 412 enterprises, Mai Qingxi is divided into specialized management (67% of business income comes from a business unit), moderate diversified operation ( At least 67% of business retardation comes from two professional units), diversified operations (less than 67% of business income comes from two institutions). The result is: Specialized management method, TRS (returning rate) 22%, moderate diversity, TRS (18%), diversified business method, TRS16%.
From the return rate, the way specialized operation is far better than the diversified business method. Under this pressure, Sterlinger has to make a choice: if a business and Sony's core business does not cross The possibility of sales, it must be split, no matter how much it is. Otherwise, Strylinger is difficult to establish its prestige in Sony.
Focus on consumer electronics business
Consumer electron is still the core business of Sony, accounting for 70% of Sony's total operating income, but operating profits account for 36% of total operating profit. Sony's consumer electronics business has been in the past two years, according to the quarterly report released by Japan's e-giant Sony, due to the low price of TV and DVD players and digital camera, but also due to its competition for audio product market Limited to Apple's iPod, leading to the company's seasonal revenue fell 13%. Sony's electronic sector, approximately two-thirds of the group's total income, and the operation income in the quarter has also dropped 23.3%, while Sony's game department operation has fallen by 36.8%, reaching 44.6 billion yen.
"In the operating term, Sony lost a chance. LCD, MP3, semiconductor, one time I gave it to others once again." A employee worked in Sony Japan's headquarters said, "especially iPod, put Sony The inside people are unsatched. "In the past few years, Sony as the" leaders "of the consumer electronics market has been challenged, pure flat-screen TV and Panasonic and Samsung, portable music player products in the DVD player market. Apple iPod in the field is constantly eating Sony's dominant status. In July last year, Samsung won the "Best Design Award" issued by 5 American Industrial Design Association. Like technology research and development, the creation of appearance details and other appearances are greatly attractive to young consumers who are chasing fashion, and young consumers are often the main target customers of consumer electronics. So that Sony Executive Vice President's big wood has to recognize that "Sony should have taken the young and positive strategy, but now it has become the main practice of Samsung, we should reflect on this."
In some parts of the United States and Europe, iPod has become a new cultural symbol - just like Sony Walkman, which affects the world's 20 years. In May 2004, Sony finally launched a hard disk version similar to iPod - VAIO Pocket, however, Apple has already sold 807,000 iPod, and it has been launched for two and a half years from Apple Computer. The market is said that so long is enough to prove how difficult to adapt new competitors and competition rules in new digital ages for new digital ages. In the face of many opponents, Apple has a share of 70% in digital music player and music download market.
Sony once is the best electronic product manufacturer in Japan, but people now criticize Sony's falling, the products in the fields of PC, flat-screen TVs and digital recorders are not attractive. Many people suspect that Sony has lost their creation. The ability of products such as Walkman, Terai TV.
Therefore, to accelerate Sony's transformation, occupying the core consumer electronics business of Sony's overall income must be slim, and push the fashion consumer electronics to the market with faster speed.
Perhaps as Stelinger believes that it does not think Sony has fallen into a crisis, but it is only necessary to focus. But the problem is that Japanese companies have contradict changes unless they realize that they are already at a critical moment they are in life and death. Therefore, Sony needs to accelerate advancement, and improve the internal operational mechanisms, and inject crisis and urgective awareness into Sony will be the primary task of Stryl.
