Sony Corporation has named vice president Kazuo Hirai as president and CEO, replacing Howard Stringer. The company feels the move is appropriate as it is struggling to regain its foothold in the cut throat competitive consumer electronics market.
Stringer will be shifted to the post of the chairman of board of directors, and will not be directly involved in company's management.
Hirai is going to take over on April 1 - and interestingly, the new announcement has come at a time when the company is likely to post a net loss for the fourth year in a row as its TV division bleeds red ink. Sony has faced jarring losses in its market share as it realises that it has lost the innovative edge which it once had during the days of the Walkman.
The urbane and English speaking Hirai will have to come up with a string of strategic as well as tactical changes to get control of this mound of rubble situation. He will have to plot a course to revitalize the electronics giant as consumers have changed their preference and lost interest in Sony's products- at least when compared to the company's glorious past.
"The most pressing issue is to turn around the TV business. Then he can prove to investors that he can make a change, but investors are sceptical how much he can do," Ryosuke Katsura, analyst at Mizuho Securities Co. said, BusinessWeek reports.