According to Sony China, during the annual shareholders meeting last Friday, the company’s shareholders approved the proposal to change the company name to “Sony Group”. The change of name will take effect next year April.
Sony is a multinational enterprise from Japan. Electronic manufacturing is the main business of the company. It was founded in 1946 by Jing Shenda and Shoda Morita. Jing Shenda has a background in technology research and development while is good at public relations and marketing. Today, its headquarters is in Sony City, Konan, Minato-ku, Tokyo.
First Time In 60 years
This is the first time in over 60 years, the company will be changing its name. The change of name will usher in a broader identity positioning. Like electronic development is the main business of Sony, just as earlier stated. The rebranding means that it will increase its efforts in financial services and other businesses. The target is to place these other businesses on par with electronics.
Sony’s CEO, Yoshida Kenichiro said:
“We decided to rename the company to the Sony Group because we want to make full use of the diversity of our business portfolio to promote the development and evolution of the business.”
The Name Was Not Even “Sony” At The Start
Well, the original name of Sony is “Tokyo Telecommunications Industry Co., Ltd.”. However, this name was changed in 1958 to “Sony”. At the time, the name “Sony” represents co-founder Shoda Morita’s ambition to create a global brand. Yoshida believes that the upcoming changes will lead the company to the next new stage.
For a long time, critics believe that Sony has been plagued by “diversity discounts”. Investors tend to avoid buying stocks in companies whose business lines are too diversified. In recent years, some electronics groups in Japan, especially Hitachi, have tried to abandon their non-core businesses.
However, the new coronavirus now makes people realize that Sony’s diversified model also has its benefits: games, music, and other entertainment businesses can meet the needs of consumers who are not leaving home. This can offset for the losses in the sales of electronic products.