Sony Vietnam: Building Quality, Building Confidence.

Essay by janosvargaUniversity, Master'sB, January 2004

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Sony Vietnam:

Building Quality, Building Confidence

Integrative Management Case Studies 1



As a member of an advisory group (team members are Boros Annamaria, Csecserits Bea, Dinnyes istvan, Ferenczne Bozoki Marta, Kacser Viola, Major Laszlo (Dr.), Mittweg Gabor, Nagy Csaba, Szabone Durucz Judit (Dr.), Varga Endre, Varga Janos, Zrubka Zsombor) (hereafter: ?Group?) I was asked to prepare an analysis ? in cooperation with other members of the Group ? on various aspects of Sony Vietnam (hereafter: ?Sovinam? or ?Company?). I am detailing my analysis, concerns and recommendations on various aspects of the Company.

The objective of this report is to provide assistance to the management on operational level aspects of its business operation by calling its attention to various fields on which closer look needed to be taken, and also, by suggesting some strategic alternatives to follow in the future in order to increase profitability and stabilize the company?s market position.


Secondary data, provided by NIHON University, was used for the purpose of the study. The Group also used some studies found on the Internet.


Sony has entered the Vietnamese market by establishing a production plant on 1st November 1994, after the post socialist country began to open its markets to some extents according to the communist government?s Doi Moi policy. The purpose of establishing Sony production facility in Vietnam was to compete in the domestic market. As 100% foreign ownership was not allowed, Sony formed a joint venture (Sovinam) with VTB, a state owned company, where Sony owns 70% of the firm while VTB has 30% of it. Sovinam expected a market growth of 20%.

Placing Mr. Yokota to lead the company in 1998, the management has realized that there are several problems affecting the company?s effectiveness,