Sony TV; What Caused the Downfall
What caused the downfall of Sony TV? In the eighties and nineties,it was the top brand, and many families owned one and bragged about the clear picture and outstanding sound.The pride and love for that television brand echoed everywhere. On February 10, 2014, an article appeared in Bloomberg online and other media outlets stating the company is profitable but not in the electronic industry. It is an electronic company, so that news shocked readers. Everyone wondered what went wrong with the Japanese company. The following information provides the answers.
Sony was usually more expensive than other televisions. Many customers liked the quality so much they were willing to spend the money for a superior television. Then the inevitable happened. The Japanese company announced a one billion dollar loss, the sale of its computer business, and a split of the TV business into a separate unit, which it could eventually sell. Thousands of employees will lose their jobs in this company plan. However, aside from the electronics, the corporation does profit from its financial products in auto insurance and life insurance. The electronics were a liability and have been in the red since 2003. Mr. Hirai blamed the tsunami for part of the problem.
Sony TV Crew In Best Years
Sony has outsourced their small and medium size tvs for some time, even the design of the television.Those tvs have only one original company part with remaining parts belonging to Samsung and others. The plan is to concentrate on large Ultra HD TVs which are not outsourced..
An example of the downfall is the story of the family who purchased a $2300 television in 2003.which lasted for three years and was out of warranty. No one wanted to deal with this heavy TV. One service man did come out but said it looked like a major problem, not worth the money to repair. A company representative looked at the set briefly and stated it needed to go out of state for repair. The brand began to go downhill with several design flaws that resulted in a lawsuit against Sony for some models.. One was a color flaw and the other a flaw in the lamp area, prompting blinking lights that never turned on the television. The family reached a decision not to have the set repaired and never learned about the flaws that appeared after several years of ownership of such sets. They later learned that some consumers received money from the lawsuit..
Explanation by Economist Gerhard Fasol
According to Tokyo based economist, Gerhard Fasol, and other experts, the corporation failed to move along into the digital age and lost to the companies who made the transition. They remained loyal to their mechanical devices, and did not make use of all the updates in the digital age. Apple and Samsung got into the phone with Internet business. Samsung TV began to expand on quality, design, and price, while Sony lagged. Experts say that dissension and a lack of consensus on how to proceed became issues. No one took charge in the leadership to make the company thrive and profit. The old story of ignoring the theory "Do it when? Do it now." prevented many companies from taking advantage of technical advances over the years.
The current CEO is Kazuo Hirai who states that, with this February announcement, the bulk of Sony's restructuring is complete. Much of their concentration will also focus on video games, mobile devices, and digital cameras, which show some promise and income. Mr. Hirai has been the CEO since 2012 when he took over for Howard Stringer who was with the company for fourteen years.
Empty Showrooms in Japan
The decline is very sad. An interview with a Mom and Pop store proprietor in Japan in 2012 revealed the company has not provided them with that brand for some time. They stated the fancy showrooms and stores are deserted. The glamour of the famous electronics firm, with its superior color, disappeared like a puff of smoke. Someone saw a once expensive rear projection set sitting in the trash near their store.
Sony, a once profitable TV company, has announced the layoff of many employees, and, among other moves, is splitting off the television business and outsourcing it. For the last ten years, Sony has not shown a profit. By not keeping up with the times and neglecting quality control, they have been deluged with complaints and delivered poor customer service. A lawsuit filed against them for numerous complaints did not help the situation. Some Wega and Bravia models delivered poor results due to design flaws..
Some consumers still possess good TV sets, but Samsung is now in the driver's seat. Sony did too little too late and disappointed themselves and their customers. It is a sad day for Sony and all the patrons who used to love the beautiful picture and attractive chassis. People become attached to their "stuff" and even though they no longer possess it, the memory of their favorite Sony TV may linger in their memories forever.
Home Base is Tokyo, Japan
This is the home of the electronics company.
Did you recently (2010-2014) have a Sony TV that broke down quickly?
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