Sony's private life

Author: Nathan (USA) as the author, translated by Xu Qin, Qian Zai Jian, Li Ningning
Publisher:
Publishing Date: 2002-10-01
Features: Only John Nathan, a Japan expert, can delve behind the scenes of Sony and tell us its behind-the-scenes stories. He reveals the mysteries of why this outstanding Japanese company has made rapid progress and stumbled. It is a fascinating and must-read corporate legend. Nathan's interviews and comprehensive talent are astonishing. He examines the soul of a Japanese company that lacks Japanese characteristics in a vivid and engaging way. This book records the various attempts and struggles of a Japanese company in its journey toward internationalization. In this process, technical issues are not the biggest challenges, but the conflicts and friction between Japanese business philosophies, decision-making processes, business operations, and the personal will of leaders when integrating with the Western business world become inevitable major obstacles. This is actually the external manifestation of deep cultural conflicts. And these problems are common challenges faced by all Japanese companies, even Chinese companies, in the process of internationalization. The author of this book has insight into the "important role of private relationships and personal emotions in Sony's development." It was due to the founder of Sony, Morita, who insisted on technology and had a vision, that Sony developed radios and color TVs. Because of the international ambitions of Morita's follower, Akio Morita, and his ability to create demand, Sony became a global company and created the Walkman, a product with no technological innovation but huge market potential. Takao Fujio, the successor chosen by Morita, created CDs as a musician, brought Sony into the digital age, and increased Sony's revenue from 15 billion to 45 billion over 13 years. The current president of Sony, Nobuyuki Ohga, who was appointed by Fujio, is dedicated to bringing Sony into the networking age and is a key figure in transforming Sony's decades-old Japanese management system. They formed the success experience of Sony's myth: "valuing the corporate brand, having sharp eyes, discovering new trends in market demand, selecting the high ground of electronic product development, continuously developing new products, driving the market with innovation, and keeping the company full of vitality and upward momentum. But it is precisely because of the strong influence of the personal will of Sony's leaders and the regrets caused by the fading of passionate dreams that planted crises for Sony's future decline, making it necessary for Nobuyuki Ohga to carry out reforms after taking over Sony to maintain its advantages and move forward. It is worth mentioning that this book was completed in 1999, when Sony had not yet encountered the current crisis. Since the year 2000, Sony has faced serious business decline. In 2003 alone, Sony lost about 1 billion dollars in the quarter, and Nobuyuki Ohga was listed by U.S. Business Week as the "worst manager of 2003." In the eyes of the outside world, the Sony myth seemed to have ended. The main reason for all this is actually that Nobuyuki Ohga did not lead Sony to adapt to the new changes in the business world and respond effectively. As more and more manufacturers now have advanced technology, whenever Sony launches a new product, they quickly catch up, and there is not much difference in performance. The time Sony can dominate the market is getting shorter. The technological innovation that was once successful can no longer bring Sony too much competitive advantage. At the same time, facing market changes, Sony in the midst of transformation finds it difficult to make corresponding strategic adjustments, because Sony is too big, and any change is not easy. Past success has also led to internal complacency and a reluctance to break the status quo. Of course, Sony will not decline like this. Sony has announced a structural adjustment plan called "Rebuilding Sony," and plans to achieve a 10% operating profit rate by the time Sony celebrates its 60th birthday, which is in 2006. Of course, Nobuyuki Ohga faces tremendous pressure. His work is even harder than that of Jack Welch at General Electric at that time, because he needs to solve not only the continued transformation of Sony but also the fact that Sony is a Japanese company. In Japan, the political system and economy are under immense pressure, while at the same time, he has to face internal resistance within Sony, as well as the rapid impact of technologies such as the internet, broadband, and wireless. For him, this is an extremely arduous and complex task, with development speeds so fast that he may not be able to control it with one hand, but he is the only one who is fully prepared for it.