Our research results suggest that the decline in Sony’s sales was not driven by the economic chaos seen this past year. The economic issues just made Sony’s underlying issues more prominent. These include a lack of desired innovation, and increased competition. The interviews conducted provided a lot of information regarding potential consumers buying motives and strategies for purchasing a TV. However; more research is needed to get a clear idea of the issues, and their specific effects on the sales of Sony. Secondary Research
Stacked heading. -Christopher Thacker 3/20/10 5:15 PM
While researching Sony Corp, our company noticed there had been a significant decrease in their net sales for the fiscal year
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Lexus Nexus (2010) shows a quick ratio for Sony of only 0.69; that is significantly lower than the desired minimum of 1. A low liquidity ratio tells us that the corporation will have tough time paying off their current debt obligations. Sony’s primary responsibility should be to become more financially stable; they need to find a way to boost sales and cut their debt liabilities. Perhaps if they managed to reduce their production costs without sacrificing quality, they could then drop the cost of their products and make them available to a larger market of consumers. As it stands, if Sony’s sales continue to drop, they run the risk of no longer being among the top consumer electronics corporations. In turn they will have a much harder time competing, and corporations with stronger finances will overtake them in the market.
Our company wanted to determine the primary cause of Sony’s net loss; to establish what their most important focus for change should be. We wanted to see if it was really just an indiscriminate factor of a troubled economy, as Howard Stringer stated, or if there was some other deeper issue involved. Issues such as: increased market competition, or lack of innovative products. These issues would continue to make it difficult for Sony to be successful, if and when the market improves. We decided to conducted research to get a deeper understanding of the market and what