Sony

Sony. Management changes at the top are driving the restructuring of the entertainment conglomerate. The arrival of George Bailey as Chief Transformation Officer, reporting directly to the CEO while co-ordinating with the head of the Consumer Products division and Network Products group, has resulted in the pace of transformation accelerating. His experience brings a deep understanding of the consumer electronics industry, contacts and networks. The overall objective is to turn their fixed-cost structure into variable, thereby allowing greater flexibility, as well as exiting peripheral activities such as OLED TVs. In addition to supplier consolidation and outsourcing, they are also bringing together product development across the group. They are very well positioned to benefit from the move to 3D across the entire spectrum of TV, gaming and movies. In the process we expect a leaner business with a sharp jump in profitability over the next two years.