Wednesday, July 17, 2013

Sony's divisions should be kept together

Many analysts are trying to get Sony to separate it's internal divisions as they are valued more individually than its sum of parts but seriously, I think they are quite old-schooled.

The reason is simple. Have the analysts tried to minus off the synergy benefits of the integration between the different divisions in Sony when they tried to calculate their individual value? Many people tend to discount the fact that the synergy between divisions within an organisation can often make 1 + 1 = 11. By splitting them, the standalone entity will start losing its edge because there is no longer any information flowing in and out.

For example, I could see so many integration points between Sony Music, Sony Pictures, and the Playstation division. If they are split, all 3 divisions might suffer "damages" that could not be recovered. In fact, there might also be integration points between the playstation, mobile and tv division.

I myself use a Sony playstation and integrate it with my Sony TV so that I can control it all with my TV remote control. It's something that many people have discounted, and no, it's not something new.

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