Years back, Sony Corp was among the most profitable companies, but its stock price plummeted to $18 in 2012, just a fraction of its competitor’s prices. There are several factors attributed to this drastic change in Sony’s fortune. The prominent ones include its slow pace in adapting new technologies concerning the internet and new software in the market, acquisition of unrelated businesses, too many related products and reluctance of engineers and departments to work together. To deal with its financial problems and regain profit margins, Sony has to address these significant areas.
First, the company should hire new employees with experience in the area of internet-based products such as online games. Sony’s employees probably worked there for years and may have gotten comfortable with the old model of doing things. In today’s world, everything revolves around the internet, and Sony should get people familiar with the competitive nature of the business. Second, Sony should narrow down its range of products to avoid confusing customers. Having one company with competing products makes little sense, and the customers will be confused about which product to choose. The company should focus on selected products and ensure customer satisfaction.
In addition to this, Sony should sell off some of its unrelated business acquisitions. Such business such as chemicals takes away from the core business by diverting attention and resources that Sony should focus on its core products for which it is known in the market. The issue of reluctance among workers to cooperate is another major factor to the company’s dwindling fortunes. To deal with this, the company should come up with ways to encourage cooperation such as team building. Top management should also find out why there is reluctance, and if necessary, employees unwilling to work with others should be let go to ensure a spirit of cooperation within Sony.