Two months ago, Sony’s president to-be had announced his plan to turn Sony around. Now, the new President has actually reconfirmed his plans and provided a few more details (Sony CEO wields ax, sets turnaround targets):
Key initiatives to transform the electronics business are:
1. Strengthening core businesses (Digital Imaging, Game, Mobile)
2. Turning around the television business
3. Expanding business in emerging markets
4. Creating new businesses and accelerating innovation
5. Realigning the business portfolio and optimizing resources
The main addition to the strategic plan announced earlier is numerical goals. However, there is not much more detail compared to what we had discussed earlier (except the loss of 10,000 jobs). There is no discussion about how the TV business can be turned around or how Sony plans to reenter OLED TV market after exiting it just a couple of months ago. Nor is there any explanation of why innovation equates to medical devices… No wonder the financial community is underwhelmed:
“I can’t make out a growth story here. It’s good they’ve announced numerical targets, but you can’t tell how they’re going to achieve them,” said Kikuchi Makoto, CEO of Myojo Asset Management.
“It doesn’t feel like an aggressive makeover,” said Tetsuro Ii, president of Commons Asset Management, who oversees $33 million of assets and doesn’t hold Sony stock. “You can’t really see the roadmap for how they’re going to revive the electronics business, nor how they’re going to create new value.”
The full strategy presentation can be found here.