Sunday, May 30, 2004

Boston.com / Business / Technology / Sony struggles to adapt in digital age

Boston.com / Business / Technology / Sony struggles to adapt in digital age "Since Idei became chief executive in 1999, Sony's shares have lost almost three-quarters of their value. During that time, Sony's market value plunged to $33 billion from $138 billion.
The "Sony shock" accelerated the decline. On April 24, 2003, Sony reported a fourth-quarter loss of $970 million, triple what most analysts had expected. Sony's trouble is that it's too big and too unfocused, says Al Ries, an Atlanta-based marketing strategist. The electronics unit makes everything from image sensors for digital cameras to CD players, personal computers, and headphones. The entertainment side creates movies, music, and video games. The financial arm houses two insurance companies and an Internet bank.
"It becomes virtually unmanageable once you go into so many categories," says Ries, chairman of Ries & Ries, which advised Apple on marketing its Apple IIe computer."
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