Will The Four-Screen Trick Help Sony?
If you're not good at doing something in particular, try doing everything. Sony (NYS: SNE) , the consumer electronic goods company, seems to be following this idea. It's trying its best to adopt the "four screen strategy."
Never heard of it? Well, the four-screens that Sony is referring to comprise televisions, computers, smartphones, and tablets. The strategy aims to integrate these products using a common platform. And in the process, it would provide end users access to a range of content and services, such as movies, music and games, across these "screens."
As a stepping-stone to achieve this, the company recently bought out its Sony Ericson joint venture for $1.47 billion. Besides the enhanced user experience, the strategy would help Sony ensure operational efficiency in terms of research and development.
Is this the right move to make?
Sony has been working on this strategy for the past five years, and hopes to make a quick breakthrough. It can surely make use of multimedia content from its subsidiaries, Sony Music and Sony Pictures, and leverage its expertise in the Playstation arena to deliver gaming solutions on all four screens.
If executed properly, this can help revive Sony's fortune. But this will not happen without stiff competition from Apple (NYS: AAPL) .
Apple, a strong contender
Apple has built a powerful consumer product portfolio over the years through innovations that delight customers. Moreover, there are rumors that Apple might introduce its own TV, which would effectively put it in the "four screen" league, challenging Sony in the process.
On the bright side, Sony is considered to be Asia's most valuable consumer electronics brand, which gives it an edge over competitors in this market.
The Foolish bottom line
The four screen strategy should pave the way for Sony's revival. Given that the company has to compete with Apple, it will have to start showing some progress rather than just talking about it. For this reason, I would prefer to follow Sony's moves closely for the time being.
To stay up-to-speed on Sony's progress, add it to your very own Watchlist. It's free and lets you stay on top of the latest news and analysis for your favorite companies.
At the time this article was published Keki Fatakia does not hold shares in any of the companies mentioned above. The Motley Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of and creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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