Inside Sony’s “Scrappy” New Strategy

SAN FRANCISCO- How will Sony’s North American operation grow, after laying off over 1,000 employees earlier this year? In a word, they’re going to get “scrappy.”

That’s what Mike Fasulo, the president and COO of Sony Electronics, said Thursday in a briefing with reporters here that he conducted along with Deputy President Toshifumi Okuda.

“The team we’re left with is a strong, talented team,” Fasulo said, which he hopes will help implement his plan and strategy.

So what is that “scrappy” strategy? Fasulo is dividing products into the “Premium” segment- featuring 4K video, hi-res audio and digital imaging- and the “Foundation” segment (essentially, everything else.) The company, as announced by CEO Kaz Hirai earlier this year, has also reduced its SKU count from over 2,000 to about 750.

The major areas of success Fasuo sees are three- the home, audio and imaging.

And with that came the day’s big announcement: Sony is teaming with Best Buy to put “Sony Experience at Best Buy” stores in 350 Best Buy locations nationwide. The store-within-a-store concept will help the company tout its 4K and hi-res audio products, as well as other SKUs. In establishing the mini-stores, Sony joins Apple, Microsoft and Samsung, which also announced that sort of concept on Thursday. (See separate story for more.)

It’s important to remember, Fasulo concluded, that “this is a fun, entertaining industry.”

Comments
  • William Matthies

    With due respect, dropping just one letter from their "scrappy" strategy name will, I believe, result in a better one word description of their strategy.

  • David Berman

    I think Lexus needs to get scrappy too. They should stop making all, but the two cars they started with and they should put them on Toyota dealer lots! What a novel idea! I think chances are good that Samsung and LG will come up with their own version of experience centers inside Best Buy and that will be the end of the Sony experiment. Listen well folks: "more expensive, better quality products belong in independent specialty stores where the value and quality you pay for can be adequately demonstrated and sold. Lexus deserves to be sold separately from Toyota, just as Integra needs to be sold separately from Onkyo.

  • Sam

    Scrappy? ‘Sad to see what was once a great brand turn into a scrappy brand.