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Competitive Strategies Case Study

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Case Title:

Sony's Cost Cutting Strategies

Publication Year : 2004

Authors: Shalini, Sumit Kumar Chaudhuri

Industry: Engineering, Electrical and Electronics

Region:Japan

Case Code: COM0238

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Since its inception in 1946, Sony Corporation has been known for its innovation and product quality. However, since the late 1990s, due to high competition from domestic and international players, recession in the Japanese economy and quality concerns of its gadgets, Sony has been facing stagnant growth and decreased profitability. With its core business of consumer electronics witnessing stagnated growth, Sony under its CEO, Nobuyuki Idei, initiated a massive restructuring plan in 1999, which was primarily aimed at cutting costs and regaining the company's competitive edge.

Pedagogical Objectives:

  • To discuss the restructuring strategies of Sony
  • To discuss the company's 'transformation 60' initiative .

Keywords : Sony; Restructuring;Cost Cutting; Restructuring / Turnaround Strategies Case Study; Consumer Electronics

Contents : 
Sony’s Rapid Growth
Business Segment Information
Outlook for the Fiscal Year ending
Sony’s Product and Technology Milestones

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