At a recent Tokyo news conference, Sony CEO, Howard Stringer, unveiled the company's new corporate strategy. Sony plans to raise its return on equity to 10 percent in three years which would bring its profitability closer to levels at Samsung. To do so, the company will improve the operations of its TV business and expand its PC, Blu-ray Disc-related products and component/semiconductor businesses. Sony also expects its game division to become profitable by the end of the fiscal year and will be launching a video distribution service on its PlayStation Network this summer.
Sony today presented a series of new initiatives designed to build on its previous three-year revitalization plan and to position the company as the leading global provider of networked consumer electronics and entertainment. In particular, the company will focus on strengthening core businesses, enhancing network initiatives and leveraging international growth opportunities to build for the future and drive further growth and profits. In addition, Sony announced the following key mid-term goals:
Expand our PC, Blu-ray Disc-related products and component/semiconductor businesses into “trillion yen businesses,” joining LCD TVs, digital imaging (digital cameras and camcorders), game and mobile phones and raising the total number of “trillion yen businesses” to seven.
Ensure that 90% of our electronics product categories are network-enabled and wireless-capable by the fiscal year ending March 31, 2011 (“FY2010”).
Roll out video services across key Sony products by FY2010, starting with the summer 2008 launch on the PLAYSTATION®Network.
Double annual revenue from BRIC (Brazil, Russia, India, China) countries to 2 trillion yen by FY2010.
It will be interesting to see if Sony can pull all of this off. If you'd like to read more, Sony's entire announcement can be found here.
