Sony Corporation in the New Decade

2059 words 9 pages
Master of Science International Business 2010 Presented by: Fahad Ishaq Student-ID-Mainz: 905202 Student-ID-London: 3000235 Lecturer: Prof. Randolf Schrank Unit: International Strategy Words: 2041

Sony has successfully created an incredible brand name. It is all about high-technology, innovative products and state of the art gadgets. Sony was founded after post-war of Japan 1946 by two innovative thinkers Masaru Ibuka and Akio Morita, who wanted to step in the business of electronics. They setup a small facility in the bombed area in
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From 1987-1990, Sony also acquired Columbia Pictures. In 1992, the successful strategies of the company throughout the world led them to achieve 73% of entire sales outside Japan which tells about Sony’s success in internationalization and providing high premium products. In 1995, Sony went into partnership with Intel Corporation to provide microprocessor chips for their new range of laptops by name of SONY-VAIO. Later in 2001, The Company started a joint venture with Ericsson mobile and launched new range of handy sets for the consumer market by the brand name of Sony Ericsson.
Figure 2: Four Risks of Internationalization FOUR RISKS OF INTERNATIONALIZATION
Country Risk:
Companies need to have an extensive research before entering in a country. These risks can be in different forms depending upon the country governmental regulations, policies, tariffs, and patent protection. Sony had also faced some risks when they had faced problems regarding the weak patent for their electronic products.
Currency Risk: Currency plays a vital role when companies internationalize. If financial position of country is not good, it would be risky to invest. There are risks of adverse exchange rate fluctuation, inflation. In the case of Sony, the strength of Yen from 1985 onwards made exporting increasingly difficult for them. The internationalization of Sony’s production in


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