Sony Case

6 June 2017

How have the motivations for Internationalizing R&D changed over time? First these motivations were solving problems faced by local sales and manufacturing activities, but later on these motivations changed Into the fact that problems were olved in concentrated clusters, since tacit knowledge Is hard to transfer. . Why did Sony feel the need to Internationalize Its R&D activities In the late 1980s and early 1990s? They felt this need because 30% of Sony’s total production was produced overseas, and foreign sales represented 70% of Sony’s total sales. And because only a small fraction of Sony’s R&D was settled abroad, they needed to Internationalize more R&D activities In foreign countries In order to make It an success. 4. How did Sony manage Its overseas R&D activities? How did the managerial approach evolve over ime?

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Sony managed Its overseas R&D activities by high Internal coordination and communication to Improve efficiency and to create synergy. Therefore, In the early 1990s, Sony Introduced a regional management system. Several people were assigned to manage worldwide and regional R&D actlvltles. Also, meeting took place twice a year to discuss the Internal collaboration and resource allocation to Improve the R&D coordination and so the R&D actlvltles. Still, the autonomy of overseas labs Is highly valuated under the regional management system, they have the power to plan nd execute their own plans.

The managerial approach evolved due to the need of Innovations In the R&D actlvltles. First, Sony has teamed up with other companies. Second, reducing management layers, Improving coordination and refocussing on growth areas where maln points of change. 5. What have been the problems with Sonys way of managing R&D actlvltles? Sony managers. So, there has been insufficient coordination of resource allocation in R&D for improving existing products. Under the decentralized structure, independent agendas which resulted in waste existed.

Due to problems of duplication and insufficient coordination, Sony’s R&D efforts have been less effective than those of rivals. 6. Besides in-house restructuring to strengthen its technological capabilities, what did Sony do to rejuvenate its businesses? Sony has started to form strategic alliances to compete in the competitive environment. Sony also has invested in R&D resources to improve environmental performance. In addition, they expended to different sectors, for example the health sector. Furthermore, Sony has begun to outsource ertain parts of the value chain to decrease costs.

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