Earlier this week Sony held its Corporate Strategy Meeting for FY2014. It was a chance for Sony management to lay out its strategic growth drivers and the direction the business is taking across its various divisions.
Sony confirmed that it did not reach its initial sales forecasts in the mobile business. However, it did increase shipments by more than 50 percent compared to the previous year and improve profitability by 50 billion yen. Sony plans to grow the mobile business by implementing and executing on the drivers listed below.
Sony’s mobile strategy – key strategic points
– Reinforce monitoring systems to analyse business outlook, including risks such as sudden changes in the market environment and negative shifts in demand, to help ensure stable operations
Interestingly, Sony CEO Kazuo Hirai considers this the most important factor for the mobile
business this year. Sony recognises that the Smartphone business is highly volatile due to slowing growth in developed markets as well as accelerating commoditization. Kaz said that “opportunities exist back-to-back with business risk“. He went on to say that Sony will “reinforce our monitoring, and establish a structure whereby the business plan can be immediately adjusted if necessary.”
– Add to flagship Xperia line-up in a timely manner
Sony will continue the timely launch of new additions to the flagship XPERIA line-up that bring together the best of Sony’s technologies and assets. Sony wants to secure its standing in the premium market segment and to continue to “enhance brand awareness“. Kaz says that “this has been our most important strategy for XPERIA from the very beginning“.
– Enrich entry-level product line-up to address specific local needs
Entry-level product line-up will be strengthened in the year ahead according to different regional needs.
– Build strategic partnerships with network operators in the United States. Strengthen presence in the U.S. market
It is no surprise that the United States will be of particular focus this year, in addition to Japan and Europe.
– Extend Smartwear concepts
Sony plans to follow the SmartBand with even more uniquely “Sony” product proposals.
– Growing the range of smartphone companion products
Sony’s growing range of accessories will be a continued focus as they help to expand the user experience and contribute to extending Sony’s range of revenue streams. Kaz feels that this business can “become another pillar for creating a more stable business structure” by broadening the scope of Sony’s smartphone business.