Sony® to trifurcate its TV business
All great firms ride the crests of the waves…and plunge to the troughs. Once in a while they face some rough weather but more often than not, find ways of coming through the storm. Electronics giant Sony is in deep water these days; its TV sales are faring so poorly that the company has said it will divide its TV business into three sections to inject some growth into the ailing division.
Reuters was the first to break the news; according to the news agency, Sony’s TV business would be split into: LCD TVs, outsourcing operations, and next-generation TVs. A company spokeswoman, on condition of anonymity, told Reuters that this operation will be made final on Nov 1, and will aid the firm to “make clearer the mission and responsibilities” of the units.
Sony’s TV business has been struggling for years; in fact, unless company executives can turn their fortunes around, Sony will post a loss for the eighth successive year. For the past many years, Sony shareholders have been requesting the firm to take remedial measures to fix its television business. Shareholders have been urging the firm to sell off the TV division, seeing how poorly it is doing as compared to its chief competitors, Vizio and Samsung.
But one person is smiling amidst the gloom. Kazuo Hirai, Sony’s second-in-command, feels there is no need to despair and that there’s still hope in the TV division. He feels that TVs can still provide a much-needed boost for the beleaguered company. “We all know it’s a challenging business, but that doesn’t equate to ‘We should be out of the TV business,’" he told The Wall Street Journal recently. “The question that needs to be asked, which I am trying to engage in very aggressively, is, ‘What does it take to turn the business around?’ as opposed to, ‘Let’s leave the business or other options.’”
But this is easier said than done. Recent reports indicate that Sony was recalling its Bravia TVs manufactured since 2007 over a design fault. According to a BBC report, nearly 1.6 million TV sets sold globally were affected by the recall.