Sony Business Leadership: Management Fundamentals

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Because Sony didn’t do a good job of researching the markets they wanted to enter, they ended up losing money and had to close their stores in Canada down to save money. Sony thought that they could enter the phone market, and compete with Apple and Samsung, but they actually ended up getting dominated by those brands. This affected Sony’s business because they got no sales, so they didn’t end up making any money. Sony has to pay for a number of things to be in the mobile market, like the production of the phones, the advertisement, the shipping of the product from country to county, and the salaries for the people working in the mobile section of the business. Because of the lack of sales, the expenses outweighed the revenue, which now forces them to change the way they do business, one example being closing down all their stores in Canada.

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Another reason why Sony’s management has had to change things up and leave Canada is because Sony is now losing their control over the TV market. Sony used to be right at the top when it came TV sales, but as the competition has started to grow, Sony’s sales have started to take a hit. Its camera sales have also been lower than they expected.

In conclusion, if Sony’s management did a better job evaluating the markets they wanted to enter. What Sony should have done was make adjustments to the amount of resources that they put into each market. If they did, they wouldn’t have lost as much money and could have stayed in Canada. Sony should have known how hard it was going to be competing with Apple and Samsung, and should have never went full out with the production of their phones, because all the production ended up costing them more money. If they adjusted how much resources they were putting into their TV’s and cameras, they would have been able to save money and keep their own stores in Canada, instead of having to cut them off to save money.

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Hill, Brandon. “Sony Forecasts $1.7B "Impairment Charge" Due to Poor Smartphone Sales” DailyTech.com. September 14, 2014. Accessed April 16, 2015 http://www.dailytech.com/Sony+Forecasts+17B+Impairment+Charge+Due+to+Poor+Smartphone+Sales/article36565.htm

Marlow, Iain. "Sony to Close All Canadian Retail Locations in next Two Months." The Globe and Mail. January 15, 2015. Accessed April 16, 2015. http://www.theglobeandmail.com/report-on-business/international-business/asian-pacific-business/sony-to-close-all-canadian-retail-locations-in-next-two-months/article22464241/.

Haselton, Todd. "Sony Reportedly Open to Sales of TV, Phone Businesses." TechnoBuffalo. January 14, 2015. Accessed April 16, 2015. http://www.technobuffalo.com/2015/01/14/sony-reportedly-open-to-sales-of-tv-phone-businesses/.