Sony Customers Usa

In September 2002, the leadership of Sony Electronics USA was searching for the right organizational structure to implement a new segmentation strategy. They wanted a structure that maintained the links with Sony Japan, yet allowed them to move forward with their new strategy. At the time, Sony Electronics USA was the sales, marketing and distribution arm of the Sony Corporation in the United States. The structure of Sony Electronics USA mirrored the structure of the Sony Corporation, which had been described as "Silos by Sony." The silos were formed around product companies, which designed and manufactured Trinitron TVs, stereo systems, camcorders, Viao PCs, Sony Walkman, etc. The partial structure of Sony is shown in Exhibit One. Not shown are Sony's businesses for semiconductors, broadcasting equipment, music and films, and games. Sony Electronics USA was part of the front end of the structure, while the product companies constituted the back end. The structure of Sony Electronics USA is shown in Exhibit Two.

Sony Electronics USA had a president who was supported by the usual functions of Human Resources, CFO, Legal and Information Technology. The line organization consisted of a Logistics and Supply Chain activity, Service for repairs, which managed the call centers and service centers, and Sales and Marketing. Sales, like Logistics and Service, handled all products. It was organized on a geographic basis for small and medium sized retailers of electronic products. Large national accounts like Best Buy and Circuit City were managed through a dedicated unit. Internet retailers like Amazon and eBay were managed through another dedicated unit.

The marketing department consisted of two marketing functions and product management. Marketing Communications managed the Sony brand and handled relations with Sony Japan and U.S. advertising agencies. Marketing Intelligence gathered information from focus groups along with the call centers, and used the usual marketing research techniques. They collected information about competitors' products as well. They managed the customer database and conducted data mining analyses. The product management units mirrored the product companies in Japan. They ran the product businesses in the United States. They were the profit and loss centers. As a result, they managed pricing, promotions, the advertising budgets and advertising content for their product lines. They provided sales support to the field and were responsible for the demand forecast. The product lines were also a major source of input into the new product development process in Japan.

Each product line was a product category that was made up of several products. Digital imaging products consisted of the Camcorder line and various digital cameras. Visual network products were television sets, VCRs and DVDs.