Why is Sony here

Sony CEO Hirai has taken some recovery plans since taking office in April 2012, but has failed to achieve results, according to a person familiar with the matter, Reuters reported. As a result, he and his deputies are now considering more options, including the sale of loss-making television and mobile handsets or the formation of joint ventures.

In short, the new lead eldest brother Hirai prescribed a prescription, compression cost and focus on high-end strategy, failed, Sony's disease is not good. Even heavier. Sony has cut its earnings forecasts six times since Hirai took office. The company predicts that the net loss for fiscal year 2014 (as of March 31, 2015) will reach 230 billion yen ($ 1.9 billion trillion) and the first dividend payment will be suspended.

Why is Sony here?

The reason is three.

One is that Sony has changed its genes, or that Sony is no longer the Sony.

In the era of Morita, Sony was an innovative Sony, and the idol of Steve Jobs, as Apple today, dominates the innovation world. It invented the world's first recorder, the semiconductor radio into the pocket, the introduction of the Walkman, ... After the resignation of Morita, Sony changed, no longer the innovative Sony, the focus shifted to the design. Sony has become a brand (most of China's Sony powder is designed for Sony fans, is the second generation, foreign first generation of powder is Sony's innovation, they most despise second-generation). At the same time, Sony never made a splash of the world's products. Gradually, it degenerates from greatness to strength. Great is invincible, and strength is hard to say. Sony has emerged as a competitor to Japanese companies outside its home appliance sector, Samsung and LG, and then the Chinese have risen.

The company's genes determine the limits it can reach and determine his future.

Second, dead-protect TV and smartphone business.

It must be admitted that the television is the field of Sony fine tillage for many years, is the first brand, many technology leader. There have been failures-because of missed LCD technology, by Sharp, Panasonic, Samsung beyond the performance of the television sector is poor. In the first quarter of fiscal year 2005, Sony Television lost 7.26 billion yen (about $65 million). Sony's third director Yian bluntly: "TV is the core of Sony's core, whether Sony can turn over, see whether Sony in the television market Deus, fully short-based growth of the rapid LCD TV market, to retake the world's largest LCD TV brand as the goal." "The third quarter, Sony launched the BRAVIA TV, Sony TV back to glory."

Smartphones are also very good, once climbed to the third place in the world.

But the glamorous past does not equate to a happy present with a bright future, and there is no relationship between them.

Sony ignores the general law of a thing: the flow of water to the lower. The bigger name is industrial transfer. Industry shifts have been taking place and are accelerating. It took more than 50 years for Hitachi and Panasonic to make an oscilloscope similar to HP's, and by the time it was 80 years ago, Canon imitated HP's inkjet printer for almost a few hours. This shift took place not only between Japan and the United States, but also between the Japanese and the Asian Dragons of that year, between the Asian dragons and the mainland.

Today, Sony's TVs and smartphones compete with China's many manufacturers, and Sony has technical advantages, such as BRAVIA engine, but this technological advantage is not conclusive. Today, two-thirds of Americans have less than $1000 trillion in deposits, and only a few one-third of Americans will be able to take out 1,000 dollars or just 500 dollars of emergency costs from bank deposits. A survey last June showed that there were more Americans without any savings than those with emergency funds that were sufficient to cover six months of living expenses. "I think a lot of people don't have the ability to save," Clesse Bell, Claes Bell, Bankrate.com banking analyst, said in a telephone interview. I think the findings tell the truth: With just one windfall, millions of of Americans are in financial trouble. "Bell believes that a very bad saving rate is one of the consequences of the Great Recession. In theory, the Great Recession ended in June 2009, but today, more than five years later, the impact remains unchanged. Europe worse. At this time, the importance of performance is certainly not the price. The Japanese character decided they could not do the bargain. If you need 1000 pieces to do a good product, then they will definitely spend 1000, 990 is not. Samsung's OLED screen is known to all, Sony's OLED screen can dump him eight blocks. Why is Sony's OLED not on the phone? A word, expensive, two words, cost, three words, not cost-effective. Why does Sony not shrink its own OLED? In addition to the economic trend of the reasons, there are products. Samsung and LG TVs are no worse than Sony. As for mobile phones, Samsung has a lot of money to sell, and Apple experience is unstoppable, these two Sony can not learn.

In fact, notebook computer has proved that consumer electronics can not go simple design this path. Yes, unlike laptops, where personal color is stronger than tool color (which is one of the big reasons Apple's mobile is invincible and Apple's computer is the enemy), the tool part is not to be overlooked. As personal consumer electronics, it is to be on the basis of almost quality to play the role of design, no one wants a embroidered.

Sony needs a new market, not a traditional market. No business can live forever.

Sony should look at its old rival Panasonic. Just as Hirai became the CEO of Sony, Tsuga became Panasonic's CEO. Under the leadership of Panasonic He Yihong, the focus has been successfully shifted from TV and DVD players to growth areas such as advanced driver assistance systems and high profit home appliances.

Third, Hirai is not an excellent manager.

He did not have the courage to burn his bridges, nor did he have the talent to solve problems. Sony ills difficult, need big wisdom big courage, can the tide. Look what Hirai did? Cut off the notebook business. This is good, but should be cut off should not be TV business? Sony Television, despite its technological lead, has been losing money for several consecutive quarters and has seen no future. Not cut off entirely because of the unique status of television business (TV business in the Sony Tripod for many years). Pingki lacks courage. The smartphone business has done well, and smartphones have become the focus of Sony. In fact, Sony phones do not have any advantage over other smartphones, except for a design, but at this time, with the Apple reference, Sony's products are less stunning, lost the design can bring the greatest advantage.

In summary, I think what Sony needs most now is a new leader who leads a radical overhaul rather than a patchwork of fixes.