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Monday, June 16, 2014

Quantities of Sony.

According to the Sony veteran, the middle-aged engineers and technicians that left were the same ones that brought Sony to greatness. They left behind a younger generation that was insecure, afraid of failure, and only willing to work with technology already in place- not build from the ground up. So when a company starts promoting early retirement, most people take that as a sign to get out while they still can and many did. Maybe the idea was that by getting rid of the middle aged and older employees they'd encourage innovation find where consumer pain really lay and bring in some young blood. This effect was more like shooting yourself in the foot. This seemed to be the Saxon business model promoted by a statuary vision.
How could a company like Sony be turning into a Ghost both in Japan and around the world dropping product lines as with it its vision to making consumables friendly. This can happen and has happened as corporations zoom to fill this profitability, leaving Sony a wake of product lines that had to be untethered quickly. What was even worse is that during this period, Korea and Taiwan immediately welcome the exiting Sony techies with open arms. It was better than industrial espionage-Samsung could openly 'buy' the technology that Sony had developed simply by rehiring their best and brightest know, came with market research that assured success. As the representative of a major european investor company in Sony recalls his meeting with Idei very unfavorably.
This investor came to Japan to talk to Mr Idei about our growing concerns with Sony's direction as its revelled to book club. They had dinner together he wanted to talk about profit margins;. Mr Idei wanted to talk about the wine they were having it struck me as a clueless to dilemmas. So when the investor pointed out that Sony's operating profits on electronic products were roughly 2-4 percent and that Samsung was making similar products at a 30 percent profit margin, Idei hushed him by reportedly saying, 'They make the parts for our products. We put them together. It's the difference between a steel maker and an automobile maker. Sony make the automobiles'. An investor apparently countered, 'I've got news for you the expertise you laid off from the car plant are now working at the steel mill, and soon the steel mills will be building cars with your technology?' The warning was not heeded. This was in 2004 profits always constant when they last met, and while the iPod was increasingly becoming the to-go platform for mobile music and multi-media contents, Sony or rather Idei, didn't take it seriously. Leaving technologists with a handle a leaver to explore profitable of rival products Samsung dell generation did arrive, not the only battle Sony had protect it self from. As this speed towards intensive care became a new technological fiasco, as customers and like scrambled away no longer in ownership of iconic Sony brand.

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