I just finished reading Hiroko Tabuchi’s excellent article How the Tech Parade Passed Sony By. I’ve felt bad for Sony for quite a while now. Despite having started out over 60 years ago with rice cookers and having successfully adapted to several huge technology shifts, Sony is on the verge of becoming irrelevant.
The article cites a few reasons for Sony’s decline:
- lack of focus - dozens of poorly differentiated models
- internal tension between the content and technology parts of the company
- failing to embrace trends in technology (digitization, a shift towards software, importance of the Internet)
I’d add to the list the following:
- many core products being commoditized (TVs, low end camcorders)
- insistence on proprietary formats and technology (ATRAC/mini disc, memory stick, etc) as the world has largely adopted open standards
If I were put in charge of Sony I would do everything I could to refocus the company on becoming a world class brand in home entertainment. A few ideas:
- Sell the Vaio business
- Get out of the phone / mobile audio / professional / camera / camcorder businesses
- Cut the TV unit to one model that comes in different sizes, all including a great video camera and supporting voice / gestural input
- Dramatically reduce the mess of other home theater products - there is no reason to be selling multiple mid-range receivers!
- Build a great software experience into the TV (apps for all major media / communication services, universal media queue, robot recommendations, share + recommend to your friends)
- Build great companion apps for every relevant platform
- Buy Netflix or Hulu if possible
- Offer all-you-can-eat access to Sony-owned content, for free (subject to release windows etc.
- Continue to fight hard for games.. I don’t really know about this market so can’t really comment
Thoughts?