Sony faces real financial challenges, but their latest mid-term strategy report indicates that they are coming out swinging – which is good news for digital filmmakers like us. I’m excited.
OK, let’s get to the proverbial bottom line: Sony lost money last year, big time.
On the other hand: their product development is smoking hot in the interchangeable lens camera space.
And now, the most important fact: Sony management appears to understand both, knows what they mean, and is taking the only path that makes sense to it: give customers killer products and charge appropriately for them, even if it means lower volume.
Sound like a familiar strategy? It should: it’s what Apple does.
Sony released their “Mid-Term Corporate Strategy for FY2015-FY2017” on February 18th and the guys over at SonyAlphaRumors have done a good job of highlighting some of the key points.
Here are a couple of further thoughts for your consideration:
1) Sony’s ambition is raise return on equity over the next three years from -5.68% to more than 10%
2) Sony’s further ambition is to raise operating profit from -$2 billion (give or take) to about +$4 billion (again, give or take) over that same time frame
The outstanding news for us is that it’s simply not possible to do this beyond a certain point simply by cutting costs. They HAVE to innovate, offer great products and service, and charge reasonably.
And they have HAVE to do this quickly.Sony strategy is big, hairy, audacious Click To Tweet
Fascinating and appropriate, then, that they’re going to deconsolidate a number of their operations into stand-alone business units where those units will be unfettered by non-relevant concerns of other markets and products – and way cool that one of those new units will be Video & Sound, home for their cameras and lenses.
Even more fascinating is that the company understands and is aiming for recurring revenue as well.
App store, anyone?
Just to put this all into perspective, I’ve created a chart of selected statistics for Sony, Canon and Apple, courtesy of Yahoo! Finance.
Back in the old days, we’d call Sony’s published strategy a set of BHAGs (big, hairy, audacious goals). I think that’s what they are today, too.
We’re rooting for them to succeed. Big time.
PS: Am I the only one who thinks that by splitting itself up this way, Sony can spin off the entire division to someone else? Am I the only one who thinks the same thing may be in the back of Canon's mind with its “Glass First” campaign? And am I the only one who wonders what a now-more-feasible Canon glass/Sony sensor merger might mean for all concerned?
Sony publishes the Mid-Term Strategy plan. Focus on High Value Mirrorless cameras!
Sony released their Mid-Term Corporate Strategy for FY2015 – FY2017 (Full press text here: sony.net/SonyInfo/News/Press/201502/15-017E/index.html). Here are some of the key info:
1) Overall it looks very good for Sony. They target for consolidated operating profit of more than 500 billion yen for the Sony Group in FY201.
2) Focus on High Value mirrorless cameras. The actual words used by Sony are: “While Sony does not anticipate overall market growth in these areas, the Company will target certain areas within each market that are unlikely to experience commoditization by continuing to offer new, high value-added products such as its advanced mirrorless single-lens reflex cameras and high-resolution audio products.”
3) Customer attention: “Sony will seek to reinforce its deployment of “recurring-revenue business models…also for interchangeable lenses and accessories within the Digital Imaging business.” Recurring revenue models provide a way to reach out to customers more frequently and build a more loyal customer base.
(cover photo credit: snap from the SonyAlphaRumors)