Sony’s Sir Howard Stringer Focuses on Emerging Markets
Sony’s chairman and chief executive officer, Sir Howard Stringer, recently announced that the company has come up with investment plans for emerging markets in Brazil, Russia, India, and China. The move is meant to boost Sony’s annual sales to at least $18.5 billion by March 2011.
In the past 3 years, Sony has had to lay off several employees as well as close down some factories and sell several assets. The shift of focus to developing markets will help generate a positive push in the company’s profitability levels.
Stringer’s move of investing $16.7 billion to emerging markets is a bold choice considering the fact that Sony is still slowly trying to recover from huge losses incurred in the previous years. However, targeting emerging markets and moving away from their safe havens in Japan, North America, and Europe may help bring in additional profits. Though these markets are relatively untested in terms of Sony’s market chances, these countries also have some of the world’s fastest growing economies.
Sony’s technologically-advanced products will also be quite interesting for these countries’ consumers.
One of the things Sony has to work on, however, is their high production costs. Controlling these costs will help Sony come up with better and more competitive prices.
In the long run, Stringer’s gamble may pay off, especially since he has demanded Sony’s business leaders to take bolder and more energetic and imaginative steps in handling the company’s businesses.
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