Sony’s new CEO Kaz Hirai has presented a plan to turn Sony’s business around. Hirai has outlined four points that will make this possible. He also reveals that Sony plans to invest heavily in the Crystal LED and OLED technologies.
Sony’s rescue plan
Sony presented a massive $2 billion loss in Q3 2011 and needs to turn things around. The new CEO Kaz Hirai has presented a four-point plan.
Sony to invest in Crystal LED and OLED technologies
1. Re-enforcing of Sony’s core business Sony recognizes that their strong divisions are gaming and digital imaging division, and they want to stregthen and focus on these further. The know-how and technologies in these businesses will also help Sony to efter the mobile segment (after buying out Sony Ericsson) with unique, integrated products, instead of relying on a broad line-up.
2. Rebuilding of TV business Sony’s LCD-TVs have been commoditized and Sony has too many products available. Kaz Hirai wants to focus on fewer and better TVs in the mid-end and high-end segments, integrated through Sony Entertainment Network. Kaz Hirai also says that Sony will make intensive investments in Crystal LED, OLED and other products with Sony’s own technologies to create differentiated TVs in the future.
3. Reformation of business portfolio Sony is involved in many different businesses and wants to examine the line ups in order to find out which products are becoming commoditized products without added value. These product categories will be discontinued.
4. Acceleration of innovation Kaz Hirai wants to strengthen ties between research/development and business divisions and he will oversee this himself. He also wants to make sure that Sony explores how to combine Sony’s competencies and technologies in new product categories.
The note about Crystal LED and OLED is of particular interest. Sony did not exhibit any OLED-TVs at CES 2012 in Las Vegas but did exhibit a Crystal LED-TV prototype. Kaz Hirai’s plan also debunks the rumors that Sony is abandoning the OLED business a rumor FlatpanelsHD rejected earlier.