TABLE OF CONTENTS

 COMPANY PROFILE
 SONY: THE LEADER IN PRODUCT INNOVATION
 PAST STRATEGIES
 CURRENT STRATEGIES
 FUTURE STRATEGIES
 SONY GROUP OPERATIONS AFFECTED BY PACIFIC COAST OF
TOHOKU EARTHQUAKE, TSUNAMI AND RELATED POWER
OUTAGES
 SONY AND WIMBLEDON SERVE A 3D ACE
 SONY SUPPORT FOR JAPAN EARTHQUAKE RELIEF EFFORTS
 REFERENCES

STRATEGIC PLANNING | Longitudinal Strategic Development Study

 Company Name
Sony Corporation

Founded
May 7, 1946

Headquarters
1-7-1 Konan, Minato-ku, Tokyo 108-0075, Japan

Representative Corporate Executive Officers

 Chairman, CEO and President
Howard Stringer
 Vice Chairman
Ryoji Chubachi

Major Products
 Audio: Home audio, portable audio, etc.
 Video: Video cameras, digital still cameras, and DVD-Video players/recorders, and Digital-
broadcasting receiving systems
 Televisions: LCD televisions
 Information and communications: PC, printer system, broadcast and professional use
audio/video/monitors and other professional-use equipment
 Semiconductors: LCD, CCD and other semiconductors
 Electronic components: Optical pickups, batteries, audio/video/data recording media, and data
recording systems

STRATEGIC PLANNING | Longitudinal Strategic Development Study

Locations of Major Offices and Research
Centers (in Japan)
Tokyo, Kanagawa, Miyagi

Headcount (Consolidated)
167,900 (as of March 31, 2010)

Consolidated Sales and Operating revenue

(2009)
7,214,000 million yen

Sony: The Leader in Product Innovation 

Sony Corporation is #1 in its industry, with 60 years of integrity and high quality behind its well-
recognized brand name. It has nearly universal brand recognition, and that brand stands for quality,
innovation, integrity, and service. Sony Corporation is doing what others are doing. Throughout the
history Sony has demonstrated the ability to capture imagination and enhance people’s lives. Further,
few companies are as well positioned to drive the digital age into homes and businesses around the
world for the next 50 years and beyond.

Sony is a corporation with meeting at its very heart. Ambitious by an integrated business model, the
company is well placed to bring new benefits to consumers by combining hardware, software, content
and services. Its not all about laptop, refrigerator, but Sony is introducing products which are beyond
thinking of people around. Sony is working to change the life style of people and giving satisfaction to
their customers and introducing new technologies.

STRATEGIC PLANNING | Longitudinal Strategic Development Study

PAST STRATEGIES
Sony innovations have become part of mainstream culture, including: the first magnetic tape and tape
recorder in 1950; the transistor radio in 1955; the world’s first all-transistor TV set in 1960; the world’s
first color video cassette recorder in 1971; the Walkman personal stereo in 1979; the Compact Disc
(CD) in 1982; the first 8mm camcorder in 1985; the Minidisc (MD) player in 1992; the PlayStation
game system in 1995; Digital Mavica camera in 1997; Digital Versatile Disc (DVD) player in 1998;
and the Network Walkman digital music player in 1999.

The very first strategic issue faced by Sony was the unproductive manufacturing structures
which do not affects Sony’s quality only but also affects the reputation and their image of product
started declining. argue that “the essence of most uniquely Japanese management practice will be
they productivity improvement, TQC (Total Quality Control) activities, QC (Quality Control) circles, or
labour relation – can be reduced to one word: Kaizen”. They also argue that “the implication of TQC
or CWQC (Company Wide Quality Control) in Japan have been that these concepts have helped
Japanese Companies generate a process-oriented way of thinking and develop strategies that assure
continuous improvement” DeWit & Meyer (p192). However, in the case of Sony, they did not make
any improvement or perform well in Kaizen or implement an efficient manufacturing structure that
ensure high product quality which affect their product quality and caused a massive damage to the
company. For example, there is the recall of 9.6 million Sony Laptop batteries which were liable to
overheat and potentially burst into flames where Sony even failed to fully study the problem
(Forbes.com, 2nd October 2006) and there are complaints from Japan’s consumer about PS3’s new
system (Wonova.com, 15th Nov 2006) which will affect the compatibility and status of Sony badly.
Besides than quality and reputation issues, Sony are insufficient in responding to the shift of market
demand and losing of its competitive advantages. The delays for the European launch of PS3 due to
manufacturing problems (BBC.co.uk, 6th September 2006). Where as sony failed to complete the
demands of increasing market which make other competitor more string as Microsoft start gaining
market share and enjoys the advantages. As Mintzberg et al (1999: p96) suggest, “first mover may
gain advantages in building distribution channels, in typing up specialized suppliers or in gaining the
attention of customer” and “the first product of a class to engage in mass advertising tends to impress
itself more deeply in people’s minds than the second, third or fourth”.

CURRENT STRATEGIES
Today, Sony continues to fuel industry growth with the sales of innovative Sony products, as well as
with the company’s convergence strategy. Examples include: VAIO notebooks that raise the bar in
both form and function; digital cameras that capture pictures on a floppy disk, CD-R or Memory Stick;
a handheld device that lets you store and view photos as well as moving photo; Minidisc recorders

STRATEGIC PLANNING | Longitudinal Strategic Development Study

with a digital PC Link to marry high quality digital audio with downloadable music; DVD/CD multi-disc
changers that playback both audio and video; digital network recorders that pause, rewind and fast-
forward "live" television using a hard-disc drive; and Hi-Scan flat screen TVs that deliver near HDTV
picture quality through Digital Reality Creation (DRC) circuitry. But Sony is not just the market leader
in consumer electronics.

Currently, Sony are implementing developing strategies from both “inside out”. Competitive strategy
requires both the development of existing internal and external firm-definite capabilities of developing
new ones. Another strategy that Sony implement to boost its core competence is miniaturization
(DeWit & Meyer, 2004). Sony also implement a related diversification strategy which involve adding
businesses whose value chains possess competitively valuable strategic fits with the value chain of
the company’s present business. Related diversification among the different businesses provides
Sony with sharper focus for managing diversification and is a useful degree of strategic unity across
the company’s various business activities (Thompson & Strickland, 2003). Lynch (2000: p71) also
argue that “it is the combination of resources that delivers competitive advantage, because such a
combination takes years to develop and is therefore difficult for others to copy”.

Besides all that to regain sony’s competitive advantages, they appointed first foreign chairman “
Howard Stringer “ . Logically leadership are essential to expand industry forethought, anticipating
which trends are expected to come into view, so it is significant to build Sony’s new core competence
to shape the industry.

Finlay (2000; p11) suggest that “organization alter itself and the products and services it offers
in order to match the needs of customers in its chosen marketplace which is a market-based
approach, so called because the organization looks to the marketplace to see how it should act and
how it should evolve”. Strategic management must consider the range of decisional powers available,
given the forces and demands of the external context. Choices over how organization position in a
competitive environment strategy is all about. Sony valued their customer and positioned themselves
with a differentiation strategy. Sony are rewarded with a premium price with its uniqueness (DeWit &
Meyer, 2004) that help them to gain greater competitive advantages.

In conclusion, Sony must learn from their mistake and implement more effective and efficient
strategies if they want to get out from this current unfavorable situation. Besides than their current
strategies, alternatives strategies suggested above should become another major concern for Sony to
ensure that they can effectively rebuilt their poor reputation and regain more market share in the
future.

STRATEGIC PLANNING | Longitudinal Strategic Development Study

FUTURE STRATEGY
Through research and development, the company has made considerable inroads in the areas of
professional broadcasting (with the creation of the Beta cam, DVCAM, HDCAM and 24P formats);
mobile communications (with digital phones and the CLIE handheld); PCs (with VAIO notebook and
desktop computers); storage and media (with the invention of the floppy disk, AIT and DTF drives,
and the Memory Stick) and, now, the Internet.

Sony’s future brand success will be determined by how the company meets the challenges of
change. Sony has always led the market in terms of innovation. But in a digital networked world,
products will no longer be developed with just hardware in mind. The convergence of technologies –
consumer electronics, computing and telecommunications – is a reality, with new competitors forming
and consumer mindshare up for grabs.

In the future, look for Sony to create entirely new forms of entertainment; blending movies, computer
generated worlds, games and music. Sony has the vision, technology and content to forge a direction
in consumer entertainment that no other company can match.

As the competition is increasing, Sony Company faced many challenges and will be facing more
challenges and that can be aggressive in seeking advantages by any means. The competitive risks of
introduction of products from Japan are more in the dominion of quality and trust than in any truly
competitive risk.

The story of Nintendo’s decline and the raise of Sony’s Play station illustrate the importance of
strategic planning. Managers at Sony formulated and implement strategies that have made play
station to be the best player in the video console business while Nintendo’s, managers failed to
respond to increased competition and changing customer expectation. The story of Nintendo’s
decline and the raise of Sony’s Play station illustrate the importance of strategic planning. Managers
at Sony formulated and implement strategies that have made Play station to be the best player in the
video console business while Nintendo’s, managers failed to respond to increased competition and
changing customer expectation

Things You Didn’t Know About Sony

 Sony’s first product was a rice cooker
 Sony establishes its first major overseas operation in New York City (514 Broadway) in 1960
with a capital investment of $500,000
 Sony becomes the first Japanese company in the United States to make a public offering of 2
million shares of common stock in the form of American Depository Receipts (ADRs) in 1961.
STRATEGIC PLANNING | Longitudinal Strategic Development Study
  In 1986, Walkman was included in the Oxford English Dictionary
 Before the Walkman personal stereo became a worldwide brand name, it was introduced
under a variety of names, including the Sound about in the U.S., the Stowaway in the UK and
the Freestyle in Australia.

Sony Group Operations Affected by Pacific

Coast of Tohoku Earthquake, Tsunami and
Related Power Outages

(Tokyo, March 14, 2011) - Operations at several Sony Corporation and Sony Group sites and
facilities have been affected by the Pacific Coast of Tohoku Earthquake and tsunami, and Sony is
monitoring the status of each of these sites on an on-going basis, while also considering the most
effective recovery measures. Sony also has responded to reports of widespread power outages by
voluntarily suspending operations at several sites. No significant injuries have been reported to
employees working at any of these sites when the earthquake or tsunami occurred.

The company is currently evaluating the full impact of the earthquake, tsunami and related power
outages on Sony's businesses and consolidated financial results.

As of 11:00 am, March 14 (JST), manufacturing operations have been suspended at the following
affected production sites: 

　・Sony Chemical & Information Device Corporation,

　　・Tagajyo Plant (Miyagi Prefecture) <Magnetic Tapes, Blu-ray Discs etc.>
　　・Tome Plant, Nakada/Toyosato Sites (Miyagi Prefecture) < Optical devices, IC cards etc.>
　・Sony Shiroishi Semiconductor Inc. (Miyagi Prefecture) <Semiconductor Lasers etc.>
　・Sony Energy Devices Corporation, Koriyama Plant (Fukushima Prefecture) <Lithium Ion
Secondary Batteries etc.>
STRATEGIC PLANNING | Longitudinal Strategic Development Study
　・Sony Energy Devices Corporation, Motomiya Plant (Fukushima Prefecture) <Lithium Ion
Secondary Batteries etc.>
　・Sony Manufacturing Systems Corporation, Kuki Plant (Saitama Prefecture) <Surface mounting
equipment etc.>
　・Sony DADC Japan Inc., Ibaraki Facility (Ibaraki Prefecture) <CDs, DVDs etc.>

In addition to these manufacturing sites, Sony Corporation Sendai Technology Center (Tagajyo,
Miyagi) has ceased operation due to earthquake damage. While certain production sites in Japan
other than those listed above have been moderately affected, there has been no report of employee
injury or facility damage, and operations continue. Possible damage at other Sony Group companies
in Japan is currently being reviewed. Additionally, Sony Chemical & Information Devices Corporation,
Kanuma Plant (Tochigi Prefecture), Sony Energy Devices Corporation, Tochigi Plant (Tochigi
Prefecture) and Sony Corporation Atsugi Technology Center (Atsugi, Kanagawa) temporarily
suspended operations on a voluntary basis, to assist with the alleviation of widespread power
outages.

Sony and Wimbledon serve a 3D Ace

Sony's unique 3D technology brings the world famous Wimbledon Lawn Tennis Championships in
High Definition 3D

London, 7th March 2011. For the first time ever, the finals of Wimbledon, the premier tennis
championship in the world will this year be filmed in 3D and screened live in High Definition 3D to 3D
capable cinemas around the world. The live 3D production, in partnership with the Wimbledon host
broadcaster the BBC, will also be offered to interested global broadcasters.

Sony and The All England Lawn Tennis Club today announced their official supplier partnership to
bring Wimbledon in 3D to suitably equipped cinemas around the world, offering the perfect
opportunity for fans to experience the Championships like never before in a completely new
environment, while retaining all the excitement and atmosphere of the famous Centre Court.

Sony will produce the men's semi-finals, finals and women's finals in High Definition 3D as the official
supplier of the Wimbledon Lawn Tennis Championships. To bring the excitement of 3D tennis to
interested 3D cinema chains worldwide, Sony will work with SuperVision Media, their theatrical
distribution partners.

STRATEGIC PLANNING | Longitudinal Strategic Development Study

The 3D production will also be offered to interested global broadcasters seeking unique and
compelling content for their 3D channels. The two parties will also seek further possibilities to deliver
3D tennis to a much wider audience over time.

Sony is uniquely placed to capture and broadcast the finals of the Wimbledon Championships in Live
3D, bringing the exhilaration and atmosphere of Wimbledon to a larger audience than ever before,
with every forehand, smash and volley yours to appreciate in stunning 3D reality.

Fujio Nishida, President of Sony Europe commented, "We are delighted to be working with the All
England Lawn Tennis Club to bring such a high profile sporting event to consumers around the world
in 3D. Watching tennis in High Definition 3D is a stunning experience, bringing the speed of the action
and the emotions of the occasion to life; it is as close to the atmosphere and excitement of Centre
Court as actually being there. With the Live 3D Wimbledon experience available in 3D cinemas
across the world, many more people will be able to enjoy one of the world's most iconic sporting
events as though they were actually at Wimbledon."

Ian Ritchie, Chief Executive of The All England Lawn Tennis Club, said, "Wimbledon is renowned for
its heritage and sense of tradition. At the same time we are always looking for ways to improve the
presentation of The Championships by successfully blending that tradition with innovation. We are
delighted that our 3D partnership with Sony will not only guarantee we are at the cutting edge of live
sporting television, but also deliver a compelling new viewing experience for our global audiences,
especially amongst our younger supporters.

Sony Support for Japan Earthquake Relief

Efforts

(Tokyo, March 13, 2011) - Sony Corporation today announced that, following the devastating earthquake and
tsunami that struck the northern region of Japan on March 11, Sony and its group companies will donate 300
million Japanese yen to help relief and recovery efforts in communities affected. Additionally, a disaster relief
fund will collect donations across the Sony Group from employees worldwide, and their contributions will be
matched by the company through a matching gifts program. The company will also donate 30,000 Sony radios
to assist the relief of earthquake victims, while the Sony Group will prepare further product donations going
forward, taking into account the local needs.

The Tohoku region is historically important for Sony, with a high concentration of manufacturing sites, and
many employees and their families have also been affected by these devastating events.

“In times like these, we are reminded of how important and fragile we are and of the positive impact we can
have - both as individuals and, collectively, as a Company - to assist those in need,” said Howard Stringer,

STRATEGIC PLANNING | Longitudinal Strategic Development Study

Chairman, CEO and President, Sony Corporation. “We will continue to make the utmost effort to help the swift
recovery of the affected communities in the region.”

Sony and FIFA Announce the World's First 3D

FIFA World Cup
- The Excitement and Action of the World's Most Popular Sporting Event Will be Viewed as Never
Before -

Cape Town, South Africa - Sony Corporation and FIFA (Federation International de Football
Association) today announced an agreement for selected media rights of the 2010 FIFA World Cup in
3D. FIFA is to produce the world's first FIFA World Cup in 3D. Up to 25 of the 2010 FIFA World Cup
South Africa matches will be produced using Sony's 3D professional cameras, which will provide
coverage of the action that is unprecedented in depth, vividness and excitement to people around the
world.

FIFA will utilize Sony's experience and know-how of 3D content production to spread the passion
inside the stadiums at the greatest sport event in the world to more people than ever before.
From 2010, Sony will be incorporating 3D compatibility into a wide range of consumer products such
as "BRAVIA" LCD TV, Blu-ray Disc recorders and players, VAIO and PlayStation®3, to provide a
multitude of ways in which 3D content - from 3D movies to stereoscopic 3D games - can be enjoyed
in the home. By having viewers around the world experience sensational 3D content from the World
Cup tournament, Sony aims to accelerate the expansion of 3D from professionals to consumers in
2010 and beyond.

"The transition to 3D is underway, and, we, at Sony, intend to be leaders in every aspect. Our
sponsorship of the FIFA World Cup allows us to leverage our cutting-edge 3D technology and
premier products with dazzling content to produce a unique and totally compelling viewing
experience. 3D viewers around the world will feel as though they are inside the stadiums in South
Africa, watching the games in person," said Sir Howard Stringer, Chairman, CEO and President of
Sony Corporation.
"This propels the football fan into a whole new viewing dimension and marks the dawning of a new
era in the broadcasting of sport," said FIFA Secretary General Jerome Volcker. "We are proud that
the FIFA World Cup can serve as a platform for advancing technology and the viewing experience,
and are truly fortunate to have Sony as a partner in this endeavour."

Viewers will be able to enjoy 3D experiences at the following locations:

- During the 2010 FIFA World Cup, FIFA will host the "International FIFA Fan Fest public viewing
events in 7 cities around the world (Berlin, London, Mexico City, Paris, Rio De Janeiro, Rome,
and Sydney). At Sony's commercial displays located within the "Fan Fest," people will be able
to enjoy and experience promotional highlight trailers of the FIFA World Cup in 3D.

STRATEGIC PLANNING | Longitudinal Strategic Development Study

- In anticipation of the Official 3D Film, viewers will be able to watch promotional trailers for the
film of the World Cup in 3D at retail outlets (including Sony stores) that sell Sony products
around the world.

- Sony Pictures Home Entertainment plans to produce and distribute the Official 3D Film on the
Blu-ray Disc*1 and other formats.

By combining the excitement of the FIFA World Cup with 3D images generated using Sony's
technology and products, Sony and FIFA will seek to deliver 3D images that convey the action and
emotion of the World Cup to viewers around the world, and a viewing experience as if they were in
the stadium itself.

*1 3D specification of BD is under consideration by the BDA (Blu-ray Disc Association).

* All trade names are either registered trademarks or trademarks of their respective holders.

CONCLUSION
The mission statement of the company is “To approach the customers through advanced
technological products in the various fields to fulfill their needs”. This statement shows that
Sony produces innovative products and customers also expect a bit from Sony company that it will
offer them value added services and products which will enhance their living style and quality of life
and provide a better solution to their demands. This statement indicates the major part of strategy
and that is the development of business..

Understanding the strategy concept, the levels of strategy formulation versus implementation is an
important start toward strategic thinking.

REFERENCES
Textbooks
 Bowman, C. & Asch, D. (1996), “Managing Strategy”, MacMillan.
 DeWit, B. & Meyer, R. (2004), “Strategy: Process, Content, Context”,3rd Edition, Thomson
International Business Press.
 Finlay, P. (2000), “Strategic Management: An introduction to business and corporate strategy”,
Prentice Hall.
STRATEGIC PLANNING | Longitudinal Strategic Development Study
Internet Resources
 Benson, M. (8th November 2006), “Has the sun set on Sony? - [Available at
http://www.wonova.com/11/2006/has-the-sun-set-on-sony/ ]

 Hall, K. & Edwards, C. (26th October 2006), “Sony's Singed Reputation” - [Available at
http://www.businessweek.com/globalbiz/content/oct2006/gb20061026_545666.htm?chan=search ]

 Hall, K. (30th January 2007), “Sony Financial Arm Bent On an IPO” - [Available at
http://www.businessweek.com/globalbiz/content/jan2007/gb20070130_957918.htm?chan=search ]

 Rowley, I. (2nd October 2006), “Sony's Battery Exchange: A Huge Price Tag” - [Available at
http://www.businessweek.com/globalbiz/content/oct2006/gb20061002_176559.htm?chan=search ]

 Simmons, D. (17th November 2006), “Sony's rough ride through 2006” - [Available at
http://news.bbc.co.uk/1/hi/programmes/click_online/6157430.stm ]

 Veiga, A. (21st December 2006), “Sony to pay millions for damaging software” - [Available at
http://www.msnbc.msn.com/id/16314555/wid/11915829 ]

 “Sony Hits More Problems In Japan With The Launch Of The PS3” (15th November 2006) - [Available at
http://www.wonova.com/11/2006/sony-hits-more-problems-in-japan-with-the-launch-of-the-ps3/ ]

 “Sony suffers 94% loss on battery recall in 2Q” (26th October 2006) - [Available at
http://news.xinhuanet.com/english/2006-10/26/content_5253924.htm ]

 “Fire-risk laptops hit Sony shares” (16th August 2006) - [Available at

http://news.bbc.co.uk/1/hi/business/4797073.stm ]

 “PlayStation 3 Euro launch delayed” (6th September 2006) - [Available at

http://news.bbc.co.uk/1/hi/technology/5319190.stm ]

 “ Sony Global Corporate information “– [ Available at http://www.sony.net/SonyInfo/CorporateInfo/ ]

 http://www.sony.net/SonyInfo/News/Press/201103/11-0314E/index.html

 Sony news releases: Sony and Wimbledon serve as 3D ace. [ Available at

http://www.sony.net/SonyInfo/News/Press/201103/11-028E/index.html ]

STRATEGIC PLANNING | Longitudinal Strategic Development Study

 Sony Support for Japan Earthquake Relief Efforts [ Available at
http://www.sony.net/SonyInfo/News/Press/201103/11-033E/index.html ]

 Sony and FIFA Announce the World's First 3D FIFA World CupTM [ AVAILABLE AT
http://www.sony.net/SonyInfo/News/Press/200912/09-137E/index.html ]

STRATEGIC PLANNING | Longitudinal Strategic Development Study

STRATEGIC PLANNING | Longitudinal Strategic Development Study