Founder of Sony: Masaru Ibuka
History and Growth:
Sony found its beginning in the wake of World War II. In 1946, Masaru Ibuka started an electronics shop in a bomb-damaged department store building in Tokyo. The company had $530 in capital and a total of eight employees. The next year, he was joined by his colleague, Akio Morita, and they founded a company called Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Corporation). The company built Japan's first tape recorder, called the Type-G. In 1958 the company name was changed to Sony.
In the early 1950s, Ibuka traveled in the United States and heard about Bell labs invention of the transistor. He convinced Bell to license the transistor technology to his Japanese company, for use in communications. Ibuka's company made the first commercially successful transistor radios. According to Schiffer, Sony's TR-63 radio "cracked open the U.S. market and launched the new industry of consumer microelectronics." By the mid-1950s, American teens had begun buying portable transistor radios in huge numbers, helping to propel the fledgling industry from an estimated 100,000 units in 1955 to 5 million units by the end of 1968. In the mid-1970s Sony introduces the CRF-320A multiband radio with digital tuning. Zenith Radio Corporation had long been a leader in the high priced multiband radio market with the Trans-Oceanic line, but Sony provided digital tuning (LED display) versus Zenith's analog slide rule tuning in the model R7000 for about the same price. By the 1980s Sony would become the leader of multiband radios with the ICF-2001 and ICF-2010 digital multiband radios using LCD display. Zenith would end the Trans-Oceanicline.
Sony co-founder Akio Morita founded Sony Corporation of America in 1960. In the process, he was struck by the mobility of employees between American companies, which was unheard of in Japan at that time. When he returned to Japan, he encouraged experienced, middle-aged employees of other companies to reevaluate their careers and consider joining Sony. The company filled many positions in this manner, and inspired other Japanese companies to do the same. Moreover, Sony played a major role in the development of Japan as a powerful exporter during the 1960s, 70s, and 80s. It also helped to significantly improve American perceptions of "made in Japan" products. Known for its production quality, Sony was able to charge above-market prices for its consumer electronics and resisted lowering prices.
In 1971, Masaru Ibuka handed the position of president over to his co-founder Akio Morita. Sony began a life insurance company in 1979, one of its many peripheral businesses. Amid a global recession in the early 1980s, electronics sales dropped and the company was forced to cut prices. Sony's profits fell sharply. "It's over for Sony," one analyst concluded. "The company's best days are behind it." Around that time, Norio Ohga took up the role of president. He encouraged the development of the Compact Disc in the 1970s and 80s, and of the PlayStation in the early 1990s. Ohga went on to purchase CBS Records in 1988 and Columbia Pictures in 1989, greatly expanding Sony's media presence. Ohga would succeed Morita as chief executive officer in 1989.
Under the vision of co-founder Akio Morita and his successors, the company had aggressively expanded into new businesses. Part of its motivation for doing so was the pursuit of "convergence," linking film, music, and digital electronics via the Internet. This expansion proved unrewarding and unprofitable, threatening Sony's ability to charge a premium on its products as well as its brand name. In 2005, Howard Stringer replaced Nobuyuki Idei as chief executive officer, marking the first time that a foreigner has run a major Japanese electronics firm. Stringer helped to reinvigorate the company's struggling media businesses, encouraging blockbusters such as Spider-Man while cutting 9,000 jobs. He hoped to sell off peripheral business and focus the company again on electronics. Furthermore, he aimed to increase cooperation between business units, which he described as "silos" operating in isolation from one another. In a bid to provide a unified brand for its global operations, Sony introduced a slogan known as "make.believe" in 2009.
Despite some successes, the company faced continued struggles in the mid- to late-2000s. It became known for its stagnancy, with a fading brand name. In 2012, Kazuo Hirai was promoted to president and CEO, replacing Sir Howard Stringer. Shortly thereafter, Hirai outlined his company-wide initiative, named "One Sony" to revive Sony from years of financial losses and bureaucratic management structure, which proved difficult for former CEO Stringer to accomplish, partly due to differences in business culture and native languages between Stringer and some of Sony's Japanese divisions and subsidiaries. Hirai outlined 3 major areas of focus for Sony's electronics business, which include imaging technology, gaming and mobile technology, as well as a focus on reducing the major losses from the television business.
Current Ceo: Kazuo Hirari