As consumers, we don’t really care much about corporate structures. When we hear Sony or Samsung, we assume that in each case it’s referring to the same entity.
As consumers, we don’t really care much about corporate structures. When we hear Sony or Samsung, we assume that in each case it’s referring to the same entity. But companies that make a wide range of products often compartmentalize them into groups that have their own R&D, sales and marketing departments among others.
While the goal is for each division to focus on its own products sometimes the separation has a negative effect overall. It seems that’s the conclusion Sony’s executives came to. The company is going to be restructured on April 1 when three of its electronics divisions will be merged into one.
Sony Electronics Corporation will incorporate the three businesses that comprise its Electronics Products & Solutions (“EP&S”) segment (Imaging Products & Solutions, Home Entertainment & Sound, and Mobile Communications) and related global sales and marketing, manufacturing, logistics, procurement and engineering platforms.
With this new, streamlined structure, Sony aims to make its ecosystem of consumer products more cohesive. Having a common leadership will ensure the different teams are following the same strategy. Data, know-how and experience should also start flowing freely between departments.
A good example of why the decision makes sense are Sony’s smartphones. Sony has been making some of the best smartphone camera sensors for years yet the company’s phones keep sliding into irrelevance, their camera performance not on part with that of the leaders in the class, many of which use the same hardware.
The reason for that was that Sony’s mobile division was receiving essentially the same treatment by Sony’s imagining division as outside clients would, and not the close cooperation that’s expected from different parts of the same company. Now, the smartphone team should have access to upcoming sensors earlier, which would be a competitive advantage as the camera software will be more mature by the time of release.
Of course, this move also means Sony is looking to reduce expenses by getting rid of redundant staff now that the three branches are one.
Hopefully, the changes will be beneficial for Sony and we’ll see the company retake some of its lost smartphone market share in the future.