Deoz said:
theprof00 said:
Deoz said:
"What they need to do is stay big, pray for the economy to improve and cut the fat.", what if it doesnt at the rythm sony would benefit?
I agree with most of the text but this quote is kind of misleading. I think they should improve in this economy too nut just grab into the edge of surviving and wish things get better. |
I mean yeah they could shutter some plants or put people on layoff for a while, but see, Sony's talent is their ability to absolutely flood a market with products with abandon towards likely profit. This is a big strength....in the right type of market. In a growing economy, Sony can become a powerhouse again, and learn from their mistakes and train themselves to look toward shifts in the economy and then adapt accordingly...but if they shut down too many future avenues and markets and stop too much R&D, then, when the market is growing again, they'll soon find themselves being outpaced by faster more flexible competitors.
So, they need to keep their options open while at the same time cutting down on what they make and research. Right now, I don't see a whole lot for them to be actively developing, aside from developing the right business strategy regarding their tv models. I think they're movign at the rights steps right now, tightening the laces of the shoe, so to speak. Every part of Sony has become very disparate from one another, often functioning with complete disregard to their core business.
I like the movement towards the playstation suite, and things of that nature. Tying the phones and electronics together, and getting everything on the same page so that they are very much extensions of one another. Working around that kind of business model (similar to Apple) is what is going to help help sell their hardware platforms. They need infrastructure so that you can buy a Sony camera, and your Sony laptop will automatically receive the pictures....vaio's that have access to streaming Sony movies and music...things like that.
And they need to rebrand..that's for sure.
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They should search for this flexibility then, their "stifness" would likely make their best ability in their worst weakness when economic times changes. But you are right, in this moment they are not in the position to really developing anything, and should focuse in making their situation better. I dnot think Sony really belives they will go to balck numbers in such short time but i dont expect them to put less hope into investors.
I like PS suite as long as it doesnt became a one package thing and keeps itsef as extensions.
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See, the only thing is that it's such a gue strength in good economic times. Smaller more flexible companeisw simply rely on outsourcing and short term expensive contracts. It costs a little more to get started, but stopping costs nothing, and they can stop on a dime and pursue an entirely new goal if they want.
Meanwhile, in a great economy, pricing of the manufacturing contracts will go up also as the long term contracts start pouring in, making short term contracts more risky. As a small flexible company, it's harder to compete in a great economy.
It goes both ways.
It's just that now is a down-period. A time for the small company...and Sony is already late to the aprty if they decide to join. What happens if they shutter too much and the economy gets better? This is a question they have to ask every day, adn they need to figure out how to solve it without losign too much.
