Sony's strategic Transformation: seeking development in cooperation

Since November 2007, Japan's Sony Company began a planned strategic transformation to give up the semiconductor business in exchange for Blu-ray DVD of a single big, increase with Samsung in the eighth generation of LCD panel cooperation, shares sharp tenth generation LCD panel factory, invested heavily in developing OLED panel technology development, six months of business adjustment, abandon semiconductor, Exclusive high-definition DVD, High-stakes LCD panel, cooperation in the development of the company, unwittingly Sony strategic transformation of the basic completion.

One, Toshiba: Give up the semiconductor for Blu-ray DVD a single big

In November 2007, Sony will sell its PlayStation 3 chip production line to Toshiba, opened the prelude to Sony's strategic adjustment, Sony will sell the loss of the chip production line to Toshiba, including its well-known game machine PS 3, the use of multimedia chips and graphics chip production line, Sony's chip division lost $86 million trillion in 06 years. Sony, Sony Computer Entertainment and Toshiba set up joint ventures to focus on the development of embedded higher-order chips, with Toshiba controlling 60% per cent.

February 19, 2008, Japan's Toshiba Company issued a statement to withdraw HD DVD and its related business, the end of the development and production of all HD DVD players, video recorders, computer optical drives, notebook optical drives and other peripheral products. This new generation of HD DVD Optical storage format war finally settled, Blu-ray (BLU) Camp wins, High-definition DVD standards are unified.

March 20, 2008, Toshiba announced a 835 million-dollar price to buy Sony in Nagasaki's highly functional semiconductor plant. Meanwhile, Sony, Sony Computer Entertainment and Toshiba set up joint ventures to focus on the development of embedded higher-order chips, with Toshiba controlling 60% per cent of the stake and lending a wafer factory bought from Sony to a joint venture starting April 1.

Through cooperation with Toshiba, Sony in exchange for Blu-ray DVD eminence, but also has lost the semiconductor business to Toshiba, Toshiba through the acquisition of Sony Semiconductor business to strengthen its core competitiveness, to win the Sony of this big customer, the two sides can be said that the cooperation is a mutual benefit, Sony cooperation for development strategy first success

Samsung/Sharp: High-stakes LCD panel

Also on February 19, 2008, Sony announced plans to invest about 22 billion yen, strengthen medium and large size OLED (organic light-emitting Diode) panel production technology, and accelerate the development of large and high quality OLED panel steps. Sony will intensify the development of the TFT (thin film transistor) and El (electroluminescent) layer coating treatment facility in the Sony Mobile display company, and plans to implement the production technology in fiscal year 2009-2010 until March 31, 2010.

In the strengthening of self-developed OLED panel, Sony February 27 announced the investment of nearly 1 billion U.S. dollars, together with the global LCD panel leader Sharp set up a joint venture to develop and expand the tenth generation of upstream LCD panel business. This is also the Sony after joining hands with Samsung to build the eighth generation LCD panel factory, once again with the global TV competition to expand the Panel on the depth of cooperation. The two sides have signed a framework agreement, and the new joint venture will produce and sell the tenth-generation LCD panel and module Group of large size (40 inches, 50 inches and 60 inches) based on the Osaka panel factory that Sharp is building. Sony injected 100 billion yen (about 926 million US dollars) into the Sharp Osaka panel factory, gaining 34% per cent of the plant, with sharp holding a 66% per cent stake. According to previous plans, the plant is expected to launch in March 2010.

April 25, 2008, Samsung and Sony announced the signing of an agreement to build a new eighth generation LCD production line in the Joint Venture workshop S-LCD (the second eight generation line). For the new factory capital injection, according to the announcement of the news, Samsung 51%, while Sony is 49%. Shares the same proportion of the two companies held in the joint venture S-LCD.

Through the cooperation with Samsung, Sharp and its own increased investment in OLED, Sony in the LCD field completed the eighth generation, the tenth generation of layout, but also for the future in the field of LCD television continued to dominate the foundation.

2008 Global LCD Television market size is estimated to be about 100 million units, Sony's goal is in the global LCD TV market to reach 15%-20% market share, according to this share to calculate, Sony 2008 Annual LCD TV shipments will be up to 15 million-20 million units, Samsung and Sony are the world's top two LCD TV sales, Sony mainly from its joint ventures with Samsung and Taiwan enterprises to obtain LCD panels, sharp provided the panel will help Sony to meet the rapid growth of LCD TV demand for future Sony in the LCD TV competition laid a foundation.

Third, cooperation and development, cooperation strength of this

With the development of industry, whether the semiconductor business or the liquid crystal panel business, billions of of billions of dollars of investment, more and more, the risk of the enterprise is increasingly high, by selling the loss of semiconductor business to Toshiba set up a joint venture, Sony not only for Blu-ray DVD of the Juntong, but also further activate the semiconductor business beyond the cost , with Samsung, sharp cooperation has a similar advantage, although Sony these cooperation are not in the holding position, in exchange for the future in the LCD TV competition in the dominant position, no doubt Sony's strategic transformation is successful.

Competition to seek cooperation opportunities, industry in the competition between different enterprises has become inevitable, competitive needs of strength, cooperation also needs strength, the power of the supremacy between the two companies in the initial stage of the Chinese enterprises more difficult, like Huawei, ZTE, Lenovo, like relying on a strong Chinese market rapid development, internationalization, Joining the international Strong club as soon as possible is the only way for Chinese companies to do so, otherwise the gap will only grow larger. Without the strength to do the foundation, the competition will not be at the unified level, cooperation is also difficult. The market for technology is whimsical, sent out of the market, in exchange for only the outdated technology, want to step on the shoulders of giants, but the giant is forever trampled underfoot. (author, Lao Yao)

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