Under the moniker "One Sony", the next step is to strengthen its successful Digital Imaging, Game, and Mobile divisions. In addition, Harai plans to turnaround Sony's ailing TV business by divesting itself of its joint Sony/Samsung LCD panel manufacturing plant, reducing the number of its Bravia TV products by 40%, and redirecting R&D resources into newer technologies that include both Crystal LED and a return to the OLED camp in order to regain ground from Samsung and LG, who are bringing large screen OLED TVs to market later this year. Also, Sony plans to continue its commitment to the marketing of 4K resolution capable AV products.
Additional steps include placing more emphasis on getting more products sold in emerging markets, such as India and Mexico, as well as looking for ways to create new business opportunities that can lead to sustained growth, such as the medical device market.
For more details, read Read Sony's Official Announcement.
My Take: Sony certainly has a long road to hoe. Turning around a $6.4 billion dollar loss is no small task, but Sony isn't the only consumer electronics manufacturer facing losses, Sharp and Panasonic are also struggling with losses, and although Samsung is doing well overall, they did lose money in their TV division.
In fact, losses in TV sales revenue is at the core of the situation. The demand for LCD and Plasma TVs is down, 3D TV growth is slower than expected, and price competition is so fierce that there is very little profit, if any, to be made on the sale of an individual TV. To reverse this trend, some manufacturers are moving to change TV pricing policies.
Sony is a company that has great success in the past (Trinitron, Walkman, Playstation), but also some major mis-steps (BETA, minidisc), but time moves on, and if Sony can't keep up - the entire company may go the way of many great brands before it, such as RCA and Zenith. I, for one, hope that doesn't happen - more competition means more choice, and better products.