Sony 2002 Annual Report Download - page 12

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10
Sony Corporation Annual Report 2002
Sony’s Strategy for the Electronics Business
Question: Would you outline the major management themes for the fiscal year ending March 2003?
Ando COO Above all, we must restore profitability. We will continue moving at
full speed to restructure our operations. We expect a significant
improvement in terms of operating income in Fiscal Year 2002 even if
only as a result of the benefit gained from the restructuring of our
OEM business, including computer peripherals and components, and
of Aiwa, as well as an improvement in the profitability of our mobile
phone business. One more central goal for management is making
Sony number one in network electronics. We have been laying the
groundwork for quite some time and, in 2002, a number of highly
competitive products will join our lineup.
Question: Sony has strategies to both enhance its competitiveness and drive growth in its Electronics
business. Please tell us about strategies to become more competitive.
Ando COO Our strategy to enhance competitiveness centers on structural
reforms. At the beginning of Fiscal Year 2001, we created EMCS
(Engineering Manufacturing and Customer Services) in Japan in order
to fundamentally alter our approach to manufacturing. EMCS
combined many factories into one platform offering flexible and
efficient processes covering procurement to manufacturing. During
Fiscal Year 2001, EMCS produced benefits of enormous magnitude,
one of which was a substantial reduction in inventories. Going
forward, we plan to make EMCS global and seamless so as to
become even more competitive.
Sony has both traditional highly competitive products and new,
network-compatible digital products. Going forward, we will
concentrate exclusively on products that can play a part in our growth
strategy. At the same time, we will conduct an exhaustive efficiency
drive in Fiscal Year 2002 extending all the way to sales activities and
the head office. Sales activities will no longer be divided simply along
national boundaries. Instead, we will stress worldwide cooperation in
sales. Our plan is to boost efficiency by closely interlinking sales
organizations in six regions: Japan, the U.S., Europe, Latin America,
East Asia including China, and other regions of Asia.