Company case 3
1. Sony fell behind in technology. The company built its once–mighty empire based on
the innovative engineering and design of standalone electronics—TVs, CD players,
and video game consoles. However, as Internet and digital technologies surged,
creating a more connected and mobile world, standalone hardware was rapidly
replaced by newtechnologies, media, and content. As the world of consumer
entertainment gave way to digital downloads and shared content accessed through
PCs, iPods, smartphones, tablets, and Internet-ready TVs, Sony was late to adapt.
Behaving as though its market leadership could never be challenged, an arrogant
Sony clung to successful old technologies rather than embracing new ones. For
example, for three years prior to the launch of Apple’s first iPod in 2001, Sony had
been selling devices that could download and play digital music files. Sony had
everything it needed to create an iPod/iTunes-type world, including its own
recording company. But it passed up that idea in favor of continued emphasis on its
then-highly successful CD business. “[Apple’s] Steve Jobs figured it out, we figured it
out, we didn’t execute,” said Sir Howard Stringer, former Sony CEO.
2. On March 11, 2011, Eastern Japan had been devastated by an earthquake and
tsunami. Nobody at Sony was hurt. In fact, Sony’s employees dove into rescue
efforts, fashioning rescue boats from foam shipping containers to assist in saving
victims and ferrying supplies. But in the aftermath of the destruction, Sony shuttered
