Sony 2012 Annual Report Download - page 17

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reduction in fixed business costs and a 30% reduction in operating costs as it executes
a thorough overhaul of the television business.
In parallel with cost reductions, Sony will continue to bolster the competitiveness
of its product lineup. The television business will seek to achieve further advances in
image and audio quality in the high-sales-volume LCD television segment in
collaboration with the home audio and visual business and the personal
entertainment business, and by tailoring its product lineup to meet the specific needs
of different geographic markets. Sony is also making strides in the development and
commercialization of next-generation display technologies, including OLED—in which
Sony is considering strategic alliances—and Sony’s proprietary Crystal LED Display. The
television business is also enhancing integration with Sony’s mobile products and
network services, as it aims to offer unique user experiences, drive hardware
dierentiation and enhance the attractiveness of Sony’s television lineup.
III. Expanding Business in Emerging Markets
Sony has built up a solid position in emerging markets in the AV/IT* category over
many years based on meticulously planned and executed global sales and marketing
programs.
Sony’s strengths in emerging markets include its highly efficient operations
backed by tight inventory control through a strong grasp of the retail channel, prod-
uct planning and marketing programs that closely meet the needs of each market,
and its ability to leverage the Sony Group’s entertainment assets including pictures
and music to further enhance marketing eectiveness. For example, in India, Sony
Expanding business in emerging markets


30%
（）

F5
FY09
40%
30%
60%
15%
FY11
Sony
Sony
Sony
Consumer AV / IT
No. 1 share
Consumer AV / IT
No. 1 share
50%
FY14
60%



Strengthen supply chain
& operations
Products tailored to local needs
Promote Group-wide assets
Joint promotions with Pictures
& Music, etc.
NEX-
α



PlayStationNetwork 
PlayStationPlus

PlayStationSuite

F11 F13
󰒄  : 0%

F11F120%

（）
󰒅  : 30%
F11F13

Emerging Market Sales
Composition Target
(AV / IT businesses)
Emerging Market Initiatives India
TV
Home Audio
Notebook
TV
Home Audio
Notebook
30%
35%
15%
Sony
Sony
Sony
Mexico
F11 F13
* FY11 revenue share
15
Expanding business in emerging markets
* AV/IT: Consumer electronics excluding the game business