Sony this morning reported a massive net loss of $2 billion, but Kazuo Hirai, who yesterday was officially appointed to replace Howard Stringer as CEO, has big plans in mind to get the company back in shape.
In a meeting with investors this morning, Hirai detailed a four-point plan that calls for Sony to focus on its core business, further streamline its TV business, cut costs, and move forward with innovation.
Sure, those seem like common sense fixes for the struggling company, but it’s still nice to see that Hirai is coming on-board with an achievable game plan in mind.
“I thought turning around the PlayStation business was going to be the toughest challenge of my career, but I guess not,” Hirai told the Wall Street Journal in an interview today. “It’s one issue after another. I feel like ‘Holy s—, now what?’”
Here’s the skinny on Hirai’s plans:
Focusing on core business: Acknowledging that gaming and digital imaging are among Sony’s strong suits, Hirai said that he would leverage its expertise in those fields to give it an edge in mobile. He’s also interested in taking on the medical imaging market, with the hopes of it becoming a future core business.
Streamlining Sony’s TV business: Hirai wants Sony to use its Crystal LED and OLED technology for compelling next-generation TVs, but he also points out that the company needs to continue being lean with its TV business, especially when it comes to LCD TVs. (Sony recently split up its LCD venture with Samsung.)
Cut costs by transforming Sony’s business portfolio: Hirai says the company has its fingers in a wide variety of businesses, which can sometimes be a good thing, but Sony also needs to take a closer look at which products aren’t adding much value. The company will then need to either drop those products, or figure out ways to reduce costs through collaboration.
Speeding up innovation: Coming back to medical imaging, Hirai pointed out the company is well situated to become a dominant force in that field. The underlying message is that Sony isn’t afraid to step into new markets, especially if they gel with the company’s existing business. Hirai also said that he’s leading a movement to make Sony’s R&D and business groups work better together.