Further, as part of the reform, Sony will cut around 16,000 employees and close up to six of its 57 factories around the world. Sony expects all this to save around $3 billion in cost in fiscal year 2010.Reorganisation efforts like this are likely to have a positive impact on the group’s businesses in the future. ’ Focus on BRIC economies helps long term growth Sony’s largest regional growth economic opportunity exists in emerging markets, led by the BRIC countries-Brazil, Russia, India and China. These four nations are some of the world’s fastest-growing economies and represent over 40% of its population.
It has already achieved considerable success in India, with the strong presence of its film, television and music content complementing its electronics business. The group plans to replicate this model in the other BRIC countries and other emerging markets.Sony plans to double its revenues from the BRIC countries over the next three years. It achieved JPY1,000 billion in revenues from the BRIC countries (including Sony Ericsson and Sony BMG Music Entertainment) in FY2007, and it aims to achieve JPY2,000 in revenues by FY2010.
In the future, Sony’s growth would be driven by high growth BRIC economies, as its mature markets become saturated and their growth continues to remain close to stagnant. ’Partnership with FIFA to enhance corporate value The group recognises the significance of responsible marketing strategy. In January 2007, Sony signed a global partnership program contract with FIFA (Federation International de Football Association). As part of the partnership, Sony would embark on a range of activities as an official partner of FIFA. This contract will run for 8 years until 2014, with a contract value of $305 million. Sony’s agreement with FIFA makes it a FIFA partner, the highest level of sponsorship status accorded to only six companies.
Sony has been chosen to partner FIFA in its ‘Digital Life Category’ (covering a wide variety of business activities from entertainment to electronics), and will engage in an array of global marketing and advertising activities at more than 40 FIFA events, including the 2010 and 2014 FIFA World Cups. This partnership would enable Sony to associate its logo with forthcoming FIFA events. Other rights will include advertising boards in stadiums, on-screen IDs or first negotiation rights for TV Commercial spots. These activities are likely to heighten awareness and trust regarding the Sony brand and would enhance its overall corporate value. ’
