- Multinational R&D center in Taiwan
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Numerous surveys have shown that Sony's reputation among consumers is unsurpassed, particularly in Taiwan. In a market flooded with consumer electronics made by leading global corporations, many people still consider Sony to be without peer. Even Chairman and Managing Director Naoki Aramaki admits that the brand appeal of Sony in Taiwan is surprisingly powerful.
""We are delighted that Sony is so beloved by Taiwanese consumers, and we are confident that in the future not only will Sony increase its investment in Taiwan, but will also make the most of Taiwanese resources and work with local businesses to expand the market."" At the same time, Aramaki hopes to leverage the advantages of the Taiwanese market to expand Sony's Taiwanese operations and create opportunities for the entire industry.
Focusing on Market Development to Increase Opportunities for Cooperation
In 2000, Sony officially established a subsidiary in Taipei, thereby formalizing a close partnership with Taiwan. With electronics, games, and entertainment as development targets, Sony invested in Taiwan's electronics, gaming device, telecom, and communications industries, with the most important component procurement project receiving upwards of USD 10 billion, making it one of Sony's largest global procurement projects.
In order to develop cutting edge technology and stimulate industrial development, Sony established large-scale operations in Taiwan, including Applications & Devices Marketing Taiwan, Energy Business Group Taiwan, Recording Media and Energy Marketing Group, Chemical Components Marketing Taiwan, Professional Solutions Taiwan, Manufacturing Systems Taiwan, Sony Supply Chain Solutions Taiwan, Business and Professional Support of Taiwan, Taiwan Technical Support and Engineering Center, and Consumer Electronics Products Marketing Taiwan.
In recent years, in response to the Taiwan government's promotion of the digital content industry, Sony Computer Entertainment has not only actively expanded investments, but has begun working with instructors of digital content R&D courses at Tatung University to further enhance Sony's growth in Taiwan.
Forging Industry Links to Make the Most of Opportunities
June 2010 witnessed another milestone for Taiwan's economy, as the signing of the Economic Cooperation Framework Agreement (ECFA) brought the promise of even faster growth in Taiwan for companies like Sony. Naoki Aramaki says that ""Taiwan's strong ICT industry has helped Sony grow in Taiwan. And now, the ECFA removes the restrictions faced by many industries and allows them to sell to China. This will have a positive impact on Taiwan-Japan cooperation, allowing companies to pool their resources and work together in the Chinese market.""
Aramaki has over 30 years of experience in the semiconductor and semiconductor component industry, and from 1997 to 2002 was stationed in Taiwan to help promote Sony's semiconductor operations here. Before returning to Taiwan in 2010, he was in charge of similar operations in Korea, giving him fi rst hand knowledge of semiconductor industry throughout East Asia. Since Taiwan's economic boom started in the 1990s, the government has given full support to the ICT industry, resulting in a strong foundation that Aramaki finds very impressive.
He believes that Taiwan's advantages stem from the government's long term efforts to support the ICT industry, including the creation of industry chains and the training of personnel. These efforts have been crucial for the success of Sony's own operations in Taiwan.
Aramaki also says that since Taiwan is a major player in the global IT industry, with world class R&D, design, prototyping, and production capabilities, Sony's Taiwan operations leverage these strengths and work closely with the country's electronics industry to achieve more efficient global operations. Because of the close relationship between Taiwan and Japan, Taiwan has always played an important role in Sony's global strategy. In recent years, Taiwan has become an even more important partner, taking responsibility for the R&D and design of a greater percentage of Sony's products.
Government and Industry Joining Hands for Success
One of the methods Sony has used to increase its global competitiveness is to establish dedicated teams to carry out strict quality control. Another has been to spare no effort in building and maintaining the Sony brand image. More importantly, Sony creates unsurpassed core capabilities and brand competitiveness through strategic alliances. For instance, in response to global warming, Sony began publishing an environmental impact report in 1997, and in 2003 initiated the Sony Green Partner certify cation program of self-imposed environmental measures, which also prohibited partners from possessing, manufacturing, or transporting hazardous materials, and set a target of zero environmental impact by 2050. Sony will strive to reduce its environmental impact to zero by 2050.
The earthquake in northeast Japan in March 2011, however, followed by the tsunami and nuclear reactor meltdown, were a major blow for the already sluggish Japanese economy, particularly when the recent appreciation of the Yen is taken into account. Aramaki says that these are things that Japanese companies must strive to overcome.
In reality, every company must learn to deal with the vicissitudes of the business environment. This is why Sony is so committed to environmental protection. It is also why the Taiwanese government is committed to supporting business by allocating resources where they are most needed, assisting development, and promoting cooperation. These are the things that have helped make Taiwan such a rich environment for SME growth.
From the signing of the Taiwan-Japan investment agreement earlier this year, to the proposed creation of a ""TJ-Park"" (Taiwan Japan Industrial Innovation Zone) and the planning for an interdepartmental Taiwan Japan Industrial Cooperation Promotion Office, the relationship between Taiwan and Japan is growing and changing for the better. Aramaki believes that everything from technology and intellectual property transfer, to strategic partnerships and joint ventures, working together to tap emerging markets, or focusing all energies on China - all are areas in which Taiwanese and Japanese companies, including Sony, can work together to succeed.
As if providing a blueprint for Sony's future in Taiwan, Aramaki says, ""Government and private enterprise are closely linked. I think that supporting corporate growth and determining policies are the most important things a government can do for industry.""
