Sacred cow slaying at Sony Japan

Sony faces a difficult year in 2009 with fundamental changes set to be made to the business in the near future

Sony Japan is set to make fundamental changes to its business, closing factories and 'major divisions' according to latest reports.

The Times reports this week that Sony is planning to close factories in Japan with a number of "sacred cow-slaying" moves set to be made by one of the world's leading consumer technology brands in the coming months.

The Times report suggests that Sony will make fundamental changes to its manufacturing processes and to senior management at board level.

All divisions warning

Sony Electronics, Sony Pictures International, Sony Computer Entertainment, music label Sony BMG and insurance and banking arm Sony Financial Holdings are all set to face key changes in the coming months.

Sony needs to move to the content business and away from manufacturing according to Koya Tabata, an analyst at Credit Suisse.

"The most important thing is that, to improve organisational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo," said the analyst.