Sony

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Category: Business and Industry

Date Submitted: 02/10/2013 07:42 PM

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Sony Corporation has had a rough two years. At its height in the last 2 years, Sony Corporation (SNE) was valued at 56.44 USD, Today, that stock is work a mere 1/3 of that at 15.00 USD. Sony has Invested heavily in developing new technology and investing heavily in new market where it usually is not the contender. These markets include; smart phones, tablets and high-end digital photography. In the Television market, Sony has also lost money in the television market. On every television that Sony currently makes they lose money. This is because they do not build their own electronics; they simply acquire parts from different manufactures and complete a television. Televisions are a big market for Sony, one that can easily put them out of the electronics business.

Sony’s current ration sits at .8, for every dollar they owe; they make 80 cents of that back. That is not a good place for a corporation to be, however Sony has several markets where it is dominant for instance; music, video games, computers. These markets keep Sony afloat, it is however, to the best interest of Sony to turn a profit in other markets in order to flourish and stay afloat.

In current standing, Sony is current valued between 15 to 20 billion USD, and can easily be bought by a corporation like Apple, but Sony is a holder of many patents in all electronics market and could easily license them to any and all that would like to use them. Cutting off multiple sectors of the market in which Sony makes products, for instance, cutting off the consumer camera market would be a plus, but they recently acquired a big chunk of Olympus the camera manufacturer and it is very unlikely.

The television business of Sony could cut as well, since the number one in that market is Samsung. In its video game sector, for every PlayStation they make, they lose money; however, they make all the profit in the games and the accessories that accompany the gaming system. Sony just recently entered the smart phone...