Consumer technology giant Sony is thinking big with its corporate strategy, after the company outlined ambitious plans for the next three years in a February 18 release.
The move will see its capacity to execute strategy tested as the Japanese firm has projected that it will meet targets of a US$4.3 billion in its 2017 fiscal year – ending March 2018.
The company has revealed that it will implement three crucial strategies to achieve this, they are:
- Business management that emphasises profitability.
- Business management that grants each unit greater autonomy.
- Clearly defined positioning of each business within a broader portfolio.
In order to realise its aims, Sony recognises effective strategic planning as key, and has made moves to aid the process. The management structure will be altered, with a focus on individuals who can act autonomously.
Ultimately, it is hoped that in doing this, sustainable profitability can be unlocked.
Alongside personnel changes, the company will also split its myriad departments into three defined areas.
First, there's the growth drivers. These are areas of the business that have proved profitable in the past and will likely do so in the future – for reference, think PlayStation and Sony Pictures Entertainment.
Second, there will be a core group of stable profit generators. This sample of the company's wider interests will include those that are not making losses and yet are not set for periods of growth. This includes some of the products the company produces in photography and audio.
Finally, the company will focus on volatility management. Areas of the business this encompasses include TV and mobile communications. Sony has explained that they will look to target more specific markets with products from these sectors, aiming to increase sales and ultimately meet its goals even in aspects of the business that are harder to manage.
Whether the company meets its expectations remains to be seen. However, the example that Sony is setting in ambitious strategy mapping is one which enterprises of all sizes can gain insight from.