Restructuring / Turnaround Strategies Case Study

Sony's Return to Glory?

Abstract:

Once an unassailable brand, Sony has fallen behind in critical product segments, such as flat-screen TVs, DVD players, and portable digital music players. Faced with falling electronics’ prices, tough competition from other manufacturers, and increased restructuring costs, Sony is also heading for its first ever loss in a decade. In March 2005, Sony has appointed its first non Japanese CEO, Howard Stringer, to turn the ailing company around.

The case outlines Sony’s rise, its decline and Stringer’s turnaround strategy. Stringer mercilessly cuts costs while unifying the rank-and-file, and curbing the internal rivalry among engineers that had led to a confusing line-up of products, and the diminution of the once wanted brand. He believes that high-definition products are the key to Sony's future success. He also launches a makeover of the SonyStyle.com web site and bets on electronic iPod like books for future success.

Pedagogical Objectives:

• The case traces Sony’s growth strategy
• It highlights the reasons behind its stagnation
• It outlines Sony’s rise, its decline and Stringer’s turnaround strategy.

Keywords : Sony Corporation; Howard Stringer; Consumer electronics market; Turning around Sony; Nintendo; Problems at Sony; sonystyle.com; Sony Reader; Restructuring / Turnaround Strategies Case Study; Network Walkman; Mora; iTunes; iPod