A G E N D A

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A G E N D A

• Company History
• Founder Akio Morita
• Corporate Policy
• Strategy Organization
• Current Initiatives

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Company History

• 1946 - Tokyo Telecom Engineering
• 1950 - First Japanese tape recorder
• 1955 - First transistor radios
• 1957 - First pocket-sized radio
• 1958 - Name change to Sony
• (from "sonus," Latin for "sound," and "sonny,"
  meaning little man)
• 1968 - Intro of Trinitron color TV explosive
  growth
• 1979 - Walkman personal stereo

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Company History

• 1980s - Major Producer of computer disks/
  floppies
• 1988 - Bought CBS Records for 2 billion.
• 1989 - Bought Columbia Pictures for 4.5
  billion.
• 1994 - Sony Playstation released to great
  success.
• 1997 - JV with Philips (inventors of the CD) to
  make Super Audio CD
• 1998 - Launched Wega flat-screen TV
• 1999 - JV with Philips, Sun Microsystems to
  develop networked entertainment products
• 1999 - Walkman with MP3 capabilities

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Company History

• 2000 - Formed PlayStation.com games/software
  online
• 2000 - Restructured all entertainment units
  under Sony Broadband Entertainment
• 2001 - JV Sakura Bank and JP Morgan Chase for
  online bank.

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Founder Akio Morita

• Groomed to take over 14-generation family Sake
  business
• Strong entrepreneurial spirit Tokyo Telecom
  Engineering
• Revolutionary thinking Brand is lifeblood of
  company success
• Listed Sony on NYSE in 1970.
• 1966 Never Mind School emphasize the
  capabilities of individuals, rather than their
  prior academic background and history a
  revolutionary concept for Japan.
• Strong belief RD leads to new ways to meet
  customer needs.
• Co-chair of various conferences, including the
  Japan-U.S Business Council, The Trilateral
  Commission, and the World Economic Forum in
  Davos.

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Founder Akio Morita

• Instrumental in easing trade friction with the
  U.S by playing leading roles in the Keidanren
  (Japan Federation of Economic Organizations), the
  Japan-U.S. Economic Relations Group.
• 1998 - Morita chosen as one of Time magazines
  20 most influential business people of the 20th
  century - the only Asian member on its list.
• Akio Morita The Sony man
• who put Japan on the corporate
• map passed away in October 1999.

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Procurement Policies Reflect Corporate Policy

• Open Doors and Fairness
• Quality and Competitive / Reasonable Price
• Delivery Assurance and Services
• Optimum Procurement
• Technology Development
• Suppliers' Management

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Strategy and Organization

• Continue to focus on communications and home
  electric appliances, but also content and
  services
• Vertically integrated business
• Vision is to become a broadband entertainment
  company
• CEO Idei Nobuyuki wants Sony to be wherever
  people gather (Internet)
• Product-Market Strategy Apply IT to product
  design, production, distribution, and sales

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Sony Business Units

• Electronics
• Audio,Video, Televisions Information and
  Communications.
• Sony Computer Entertainment
• Hardware and related software
• Sony Music Entertainment
• Sony Music Entertainment Inc. Columbia Records,
  Sony Classical, Sony Discos,Sony Disc
  Manufacturing, and Sony Music Nashville
• Sony Music Entertainment Japan Sony Records and
  Epic Records

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Sony Business Units

• Sony Pictures Entertainment
• motion picture - production, acquisition and
  distribution
• television programming, production, acquisition
  and distribution
• home video - acquisition and distribution
• television broadcasting
• operation of studio facilities
• Sony Life Insurance
• Other
• Sony Finance International, Inc.
• Sony Trading International Corporation
• Sony Broadcast Media Co. Ltd.
• Other local entertainment businesses in Japan,
  U.S., and Germany.

Blue Streak Wheel of Fortune
Big Daddy
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Sony Business Units
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Interesting Current Initiatives

• E-Commerce
• SonyStyle.com in Feb 2000
• Strategy reflects its desire to reduce the role
  of the big discounters as middlemen and gain
  greater control over prices
• Car Navigation Systems
• 7 of worldwide market
• These systems incorporate sophisticated
  technology, including web-access and advanced
  voice recognition.
• Video-Game Machines and Console Software
• Sonys Playstation 2 (PS2) is claimed to be the
  first next-generation game console. This system
  can play DVDs, CVDs, and CD-Roms.
• In February, Sony Corp. unveiled an alliance with
  game software makers Sega Corp. and Namco Ltd. in
  online game distribution.

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Interesting Current Initiatives

• AIBO- Artificial Intelligence ROBOT
• As close to human as possible has emotions and
  instincts

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Questions to Ask

• PlayStation2 was an instant success with demand
  clearly surpassing supply. Some say it is because
  of inaccurate demand forecasts while others
  suggest that it was an intentional strategy. What
  is you take on this?
• How is your electronic division and music
  division responding to concerns over MP3 format
  piracy issues and your secure yet not very
  popular format?
• How has the vision of your founder, who recently
  passed away, been passed on to the new management
  team at Sony?
• How has the dissatisfaction of some CD retailers
  over your strategy to sell directly to consumer
  affected your distribution strategy via
  SonyStyle.com?