Sony

Sony Group Corporation: A Multinational Giant with a Rich History

Imagine a company that has been shaping the technological landscape for over seven decades. That’s Sony Group Corporation, a Japanese multinational conglomerate that started as Tokyo Tsushin Kogyo in 1946 and transformed into one of the world’s leading electronics manufacturers. How did it all begin?

The Early Days

Sony’s journey began with Masaru Ibuka starting an electronics shop in Shirokiya, a department store building in Tokyo. The company built Japan’s first tape recorder, called the Type-G, and changed its name to ‘Sony’ in 1958. Why did they choose this name?

The name ‘Sony’ was chosen as a mix of two words: one from the Latin word ‘sonus,’ meaning sound, and the other from ‘sonny,’ a slang term used in America. The company’s founders considered themselves to be smart and presentable young men, hence the name ‘sonny boys.’ The first Sony-branded product was the TR-55 transistor radio in 1955, with the company name changing to Sony in January 1958. How revolutionary was this change?

Diversification and Expansion

Sony expanded into diverse business ventures, acquiring American CBS Records in 1988 and Columbia Pictures in 1989. The company entered the home video game console market with PlayStation and expanded into the financial sector in Japan. In 2021, Sony transformed into a holding company, handing over the name Sony Corporation to its subsidiary. What does this transformation signify for the future of Sony?

The Electronics Giant

Sony is the largest manufacturer of image sensors, the second-largest camera manufacturer, and a semiconductor sales leader. It is the world’s largest player in the premium TV market for televisions with a price higher than $2,500 and the third-largest television manufacturer in the world by annual sales figures. How did Sony achieve such dominance?

The company has created its own in-house standards for recording and storage technologies, including formats such as compact disc and Blu-ray disc. In the video recording market, Sony introduced U-matic and Betamax formats but lost to VHS. They later launched Handycam products and Video8 format, and also released 4 mm DAT as a digital audio tape standard. What lessons can we learn from Sony’s format wars?

The Gaming Revolution

Sony played a key role in establishing the Compact Disc (CD) standard with Philips in 1983, and later developed write-once optical discs and magneto-optical discs for archival data storage. The company also contributed to the development of DVD and Blu-ray optical disc formats. Sony’s laser communication devices for small satellites rely on technologies developed for its optical disc products. How did these innovations shape the future?

Sony Interactive Entertainment is best known for producing the popular line of PlayStation consoles. The line grew out of a failed partnership with Nintendo. Originally, Nintendo requested Sony to develop an add-on for its Super Nintendo Entertainment System that would play CD-ROMs. In 1991 Sony announced the add-on, as well as a dedicated console known as the ‘Play Station.’ However, a disagreement over software licensing for the console caused the partnership to fall through. Sony then continued the project independently. Launched in 1994, the first PlayStation gained 61% of global console sales and broke Nintendo’s lead. What does this story tell us about innovation?

The Future of Innovation

Sony has targeted medical, healthcare, and biotechnology as growth sectors, acquiring companies such as iCyt Mission Technology and So-net Entertainment Corporation. The company established a joint venture with Olympus to develop surgical endoscopes in 2012 and another with Illumina to provide genome analysis services in 2014. In the mobility sector, Sony was a marginal player until it formed a joint venture with Ericsson in 2001. Sony Ericsson reached profitability in 2003, producing multimedia-capable mobile phones with features like cameras. These were unusual at the time. Despite their innovations, Sony Ericsson faced intense competition from Apple’s iPhone, which was released in 2007. From 2008 to 2010, amid a global recession, Sony Ericsson slashed its workforce by several thousand. In 2009, Sony Ericsson was the fourth-largest mobile phone manufacturer in the world (after Nokia, Samsung and LG). By 2010, its market share had fallen to sixth place. What does this tell us about the importance of adaptability?

Sustainability and Corporate Responsibility

Sony has been actively involved in various initiatives aimed at sustainability. For instance, it launched a joint venture with Honda in 2022, Sony Honda Mobility (SHM), which would deliver its first electric vehicles by 2026. The joint venture announced its new ‘Afeela’ brand and prototype model at CES 2023. How does this reflect Sony’s commitment to the future?

Sony was ranked ninth (jointly with Panasonic) in Greenpeace’s Guide to Greener Electronics in November 2011 with a score of 3.6/10 due to opposition to energy efficiency standards. However, it received full marks for the efficiency of its products and called on the EU to adopt an unconditional 30% reduction target for greenhouse gas emissions by 2020. What does this say about Sony’s approach to environmental responsibility?

Conclusion

Sony Group Corporation is a testament to innovation, adaptability, and resilience. From its humble beginnings in Tokyo to becoming one of the world’s leading electronics manufacturers, Sony has consistently pushed boundaries and embraced change. As it continues to evolve, Sony remains at the forefront of technological advancements, driving progress in various industries while maintaining a strong commitment to sustainability and corporate responsibility. Will Sony continue to shape our future?