Analysis of Sony

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Sony, originally branded as Tokyo Telecommunications Engineering Corporation, was founded in May 7, 1946, by Masaru Ibuka and colleague Akio Morita. The company originally started as a communication company, building various electronics, such as Japan’s first tape recorder. By the sixties, Sony was successfully selling transistors to nations internationally, and had joined the U.S. market by introducing the new industry of microelectronics. It was until later years that Sony expanded from electronics, into films, banking and insurance. Sony has established itself as a reputable company, as it is one of the leading manufacturers of electronics, and is 87th on the 2012 list of Fortune Global 500.

Sony’s significant change in their management team has resulted in them optimizing their resources, realigning their business and portfolio, and ultimately strengthening their financial position. Sony’s sales and operating revenue in fiscal year 2012 amounted to 6.5 trillion yen, and rose 4.7% to yield a total of 6.8 trillion yen in fiscal year 2013. Another tremendous improvement was that operating income in 2012 amounted to a loss of nearly 63.7 billion yen, but in fiscal year 2013, the operating income amounted to 230.1 billion yen. With significant improvements, it is not surprising that the consolidated results showed the net income attributed to the shareholders at 43.0 billion yen, in comparison to last year’s loss of 456.7 billion yen, resulting in optimal profitability for once in nearly half a decade. With impressive results in the current fiscal year, Sony is starting to break away from stagnancy, and move towards growth.

Sony’s exponential growth in activity can be attributed to several strengthening in policies. Following...

... middle of paper ... fell. Sony’s stocks have been steadily increasing this past year, and are expected to continue to rise.


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