Sony has announced the official outcome of its strategic review following new President & CEO Kazuo Hirai recently taking the helm. The main focus surrounds “One Sony” and leveraging the strength of the entire group when it comes to its core businesses (Digital Imaging, Game and Mobile).
To highlight how important mobile will be for Sony, it is targeting sales of 1.8 trillion yen in FY14 from its mobile division, one-fifth of Sony Group sales in FY14. It plans to achieve this by leveraging its technology from other parts of its business, particularly games and digital imaging as well as its rich content via the Sony Entertainment Network. Unfortunately as part of the group restructuring, Sony announced that 10,000 jobs will go during FY12 (6% of the global workforce), with restructuring costs totalling 75 billion yen ($926m) in FY12.
“One Sony” for Change
[extract from press release]
Mobile - In the area of mobile, Sony is integrating the R&D, design engineering, and sales and marketing operations of its smartphone business (operated by Sony Mobile Communications, now a wholly-owned subsidiary of Sony), “Sony Tablet” and “VAIO” businesses in order to quickly develop and deliver compelling products to market. Sony also plans to aggressively leverage its many technologies in areas such as digital imaging and game, its rich content assets including pictures, music and game, its “Sony Entertainment Network” network service platform, as well as the communications technology expertise and knowhow accumulated through its experience in the mobile phone industry, to launch new mobile products and establish new business models. Additionally, by integrating operations across its entire mobile product line-up, Sony aims to achieve further efficiencies and optimization. As a result of these measures, Sony will target sales of 1.8 trillion yen in FY14 from the mobile business, and significant profitability improvement.