Where Sony away from the consumer market

Coincides with the Chinese new year, Sony announced a restructuring strategy. Preliminary development plan for the next three fiscal years, clear parts, gaming and Internet service, television and music business as the main driver of profit, while the downturn and loss-making smart TV, smart-phone business will control the scale of investment, even gradually stripped away the two businesses. Disney iPhone 6 Plus Case

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Sony's strategic contraction and spin off mobile phone, TV service, a great tragedy of a strong man's broken wrist, and this makes the once-Japan consumer electronics giant, is further away with the mass consumer market.

Mobile phones, TV business continued to slump, led to deep losses the muck

In recent years, Sony's decline is an indisputable fact.

According to Sony's latest fiscal year 2014 earnings, Sony group in fiscal year 2014 to 128.4 billion yen net loss, compared with expanded twice. Sony also expects fiscal year 2015 appear 5th loss in 6 years.

Sony mired in huge loss of swamp with phone, television, two large downturn in the consumer electronics business has great relevance.

Three years ago, Sony Ericsson 50% Sony Ericsson held by stakes, Sony hopes the phone business, and want to be able to grab the throne of the world's third largest mobile phone manufacturer. But Sony's mobile ambitions apparently did not keep up with the changing situation, due to the rise of China's manufacturers, Sony in terms of market response, research and development, cost of losing ground, led to the "high quality, low on the" dilemma. In recent years, Sony mobile phones have not seized Chinese market, and in the global market is flat.

In the business of smart TV, although there are technical advantages such as display, speakers, but in content, applications, services and other aspects of the short Board is also very serious. Plus TV-for-rate low, threshold, lower impact factors such as Internet TV, Sony's television business has been losing money for eight consecutive years.

Reluctantly give up both units, to abandon the "Sony" strategy

Due to the ongoing downturn in the consumer electronics market, in recent years, Sony took a great deal of strategic adjustment. Among them, Hirai in 2012 since taking over as CEO, the introduction of a "Sony" strategy, trying to save Sony from their dire straits. "Sony" strategy is to hope that Sony's advantage in terms of software, content, hardware and software integration, to promote the development of mobile phone and TV services. But the strategy did not get good results, continued loss of mobile phone and TV businesses, dragging down the overall performance of the Sony has more and more obvious, and there has been no improvement.

After so many years of "self-help" after the fruitless, Sony had to deny, the shrinking of business strategy. Previously, Sony had disbanded the optical disk drive sector, split the VAIO computer Division, and now also will spin off television and mobile phone businesses.

In July last year, Sony has split the TV business, and set up separate subsidiaries--Sony Visual products company. The next step will be its Mobile Division, and the Department is currently engaged in a massive reorganization. Disney phone case

Recently, Sony (China) public relations director Jiang Jingyuan said, Sony move is currently working on the medium-term strategy, including the regional strategies, product strategies and sector structure. Among them, including massive job cuts. At the beginning of February this year, Sony officially confirmed, its mobile unit will cut 1000 jobs on the basis of last year to cut 1100 jobs. The goal is in the mobile sector by March 2016 the number of employees was reduced to 5000 people. Sony mobile unit the scale of contraction, also predicted Sony will likely take the form of stripping, to split the mobile unit went out.

Previously, Hirai, "said Sony will no longer be pursuing smart growth in mobile phone and TV services. "It means that almost three years after he was at the helm of Sony, will completely give up," a Sony "strategy, to let go of authority to departments and separate subsidiaries.

Away from the consumer electronics market, where Sony?

Sony's consumer electronics business on the scale, it is helpless. Split cell phone, TV service, also means that Sony will be moving away from the two major consumer markets.

However, spin off mobile phones, televisions and other consumer electronics business, Sony is pinning its hopes on the three other big businesses. According to Sony's latest plan will be part of their businesses in the future, gaming and Internet service, television and music as the driving profit growth's three major sectors.

But this does not seem to have clear prospects for development planning. In terms of its components business, while Sony's CMOS sensors and other components has a strong market demand, but its size is hard to compare with end products such as mobile phones, TV. And in terms of film, because film costs, the risk is large, and will deliver long-term, stable profits is also unknown.

In addition, the gaming business is believed to be Sony's lifeline. However, it also does not support Sony in the future. Although Sony's in-game content and game machine market has performed well but with global markets, huge number of game providers. In China, for example, Microsoft has entered the gaming market, Huawei, Lenovo, Hisense, established enterprise is ready to enter. Aspirations of Sony's market dominance in the game is not easy to achieve.

Overall, the strategic adjustments, the consumer electronics giant Sony once to move away from the consumer market. But the future, Sony will probably come to a diversity.

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