On March 7, 2005, Nobuyuki Idei, Chairman and CEO of Sony resigned, handing over the reins to Howard Stringer. At an emergency meeting in Tokyo, Sony's board approved the transfer of power, making Stringer one of only a handful of foreigners ever to lead a top Japanese company. The move is the biggest management upheaval in Sony's 59-year history.
The top management change comes at a time when Sony is facing many concerns. For a long time, Sony has dominated the consumer electronics market with constant innovation and clever marketing. But, things started changing in the late 1990s. Though PlayStation is the leader in the video gaming market, it faces tough competition from Microsoft and a resurgent Nintendo. Competition in the consumer electronics business from Samsung and LG is intensifying. Apple is giving Sony a run for its money in the portable music devices business with its huge hit, iPod. Sony has delayed its response to Apple's iPod.
In January 1996, Sony announced a new ten-company structure, replacing the previous eight-company structure introduced in 1994. The previous Consumer Audio & Video (A&V) company was split into three new companies - The Display Company, the Home AV Company and the Personal AV Company.
Sony created three new marketing groups, Japan Marketing Group (JMG), International Marketing & Operations Group (IM&O) and Electronic Components & Devices Marketing Group (ECDMG). JMG was responsible for all marketing activities in Japan for five companies - Display Company, Home AV Company, Information Technology Company, Personal AV Company and Image & Sound Communications Company. IM&O was responsible for supporting all overseas marketing efforts for these companies.
By this time, Sony was betting heavily on the PlayStation. Created in-house, this video-gaming device stormed the market, almost decimating its rivals, Nintendo and Sega. With electronics and entertainment movies not performing well, Sony heavily depended on PlayStation. Idei then turned his attention to the movie business. He made Howard Stringer (Stringer) in charge of turning around Columbia Tri-Star studios. |
