Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Version: 2004
Length: 12 pages
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https://casecent.re/p/62308
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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 primarily aimed at cutting costs and regain the company's competitive edge. This case provides the scope to discuss the restructuring strategies of Sony and its 'Transformation 60' initiative through which the company aims to increase its growth and profitability amidst severe competition and challenges in the global consumer electronics industry.
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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 primarily aimed at cutting costs and regain the company's competitive edge. This case provides the scope to discuss the restructuring strategies of Sony and its 'Transformation 60' initiative through which the company aims to increase its growth and profitability amidst severe competition and challenges in the global consumer electronics industry.