CHAPTER 12 Investments
FEATURE STORY
Playing for Fun and Profit
Sony (JPN) has thrived for decades despite being engaged in lines of business that are constantly changing. It is not an environment for the timid. Sony began in 1945 as a radio repair shop in Tokyo. Soon, it was making Japan’s first tape recorders. Long before Apple’s (USA) iPod, Sony changed the way the world listened to music by developing high-quality, low-cost transistor radios, which enabled people to listen to music on the go. Then came the Walkman portable tape player, which combined Sony’s tape recorder technology with its ability to make things small. When CDs replaced audio cassettes, Sony was ready with the Discman. Over the years as technologies, tastes, and lifestyles changed, Sony adapted and invested.
Much of Sony's success in electronics is due to the innovative spirit within the Sony Electronics division. As a result of this innovative spirit, Sony has invented many game-changing new products. However, despite its internal successes, Sony has not been afraid to invest in other companies when it saw strategic advantages and opportunities. For example, Sony Electronics recently acquired Hawk-Eye Innovations (GBR) and Chip Plant (JPN) to enhance the competitiveness of its product lines.
One of Sony's most well-known recent successes is the PlayStation® video-gaming console. PlayStations have outsold all competitors. Yet, even in this case, Sony has made strategic investments to strengthen its position. ...
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