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SUPER SALESMAN WITH A VISION
OCTOBER 17, 1999 -
THE STAR
IT was like any other evening. He was resting "peacefully" in
his favourite couch listening to Mozart. As usual, his
children and their friends were creating a racket upstairs-
blasting their music to uncontrollable levels.
"Not again, from morning till evening the same loud noise," he
thought. "There must be a way where they can enjoy their music
and I mine."
Thus was born the idea of the world-beater called Sony
Walkman. The man behind the idea was none other than Akio
Morita-the great entrepreneur, inventor, super sales- man and
realist.
The beginning
Akio Morita, heir to one of Japan's famous sake-brewing
families, was born in 1921 at Kosugaya village near the
industrial town of Nagoya. The boy learned about life growing
up in an environment that was conducive and educational. At
the age of 10 he sat with his father in what he called "long
and boring board meetings."
"I was taught that scolding subordinates and looking for
people to blame for problems-seeking scapegoats-was useless."
This lesson he kept throughout his life. He mingled easily
with all members of his staff.
Like his father, he learned to appreciate music and
technological advances in the phonograph industry. His father
made it a point to buy the best set in town in order not to
hurt his children's ears.
Naturally he took to listening to the works of Mozart,
Beethoven, Bach, Brahms and others. One of his favourites was
Ravel's Bolero.
Morita became obsessed with electric phonograph at high
school; he began subscribing to foreign magazines that had
information about radio, sound reproduction and such like. He
regularly read the Japanese magazine Wireless and Experiment.
He bought books on electronics; he reminisced: "In fact, I
became so engrossed in my electronic tinkering that I almost
flunked out of school."
At eighth grade of High School, he decided to enter the
science stream. His parents were surprised as he was a "poor"
student but he managed to obtain a place through hard work and
much tutoring.
He was the lowest ranking student (180th) in his school to
enter the science class. Morita went on to study physics at
Osaka Imperial University. Upon graduation, he joined the navy
during World Was II as a researcher.
On May 7, 1946, some 20 interested people met at a burnt-out
department store in Tokyo. They started the Tokyo
Telecommunications Engineering Corporation or Tokyo Tsushi
Kogyo Kabushiki Kaisha with about US$600.
Akio Morita was 25 years old and Masaru Ibuka, 36, when they
cofounded what was later known as Sony, the electronics and
entertainment giant.
Morita had this to say about Ibuka: "Knowing him has been one
of the greatest blessings in my life and working with him has
been a source of immense joy."
Sony's growth and success was a result of the co-founders'
vision of making it international. The company's Japanese name
of "Tokyo Tsushi Kogyo Kabushiki Kaisha" would have been a
mouthful to a non-Japanese.
They wanted a name that was internationally acceptable, short
and pronounced the same everywhere. The Latin word for sound
was sonus; around this time the term "sonny" or "sonny-boy"
was common in English. Taking the two, Sony was coined.
The inventor
Morita and his friends tasted failure early in their venture.
In 1946, they "invented" a rice cooker. Unfortunately, it did
not work well. In 1950 Sony produced the first magnetic
recording tape and tape-recorder.
Morita, Ibuka and 40 other scientists worked very hard under
trying conditions. Immediately after the war they were trying
to get contracts from the Japan Broadcasting Company NHK,
which needed new technical equipment as mixing units, among
other things.
Sony was recommended by a friend. The American general who
visited the work site was appalled by the primitive, tiny,
ramshackle set- up. He was shaking his head all the time.
However, he was persuaded to give the contract to Sony.
When the equipment was delivered, NHK and the American general
in particular, could not believe the high quality.
Congratulations and additional jobs followed.
The magnetic recording tape and tape-recorder was not an
instant success; it weighed 75lb. But it went on to gain the
confidence of IBM, which chose their tape for data storage.
In 1955, Morita and some researchers came out with the
transistor radio, which became an international hit. This
small radio quickly caught on in the US market and elsewhere.
In 1968, the company came out with Trinitron colour television
sets, which became the standard quality for colour television.
In 1975, Sony invented the Betamax video cassette but failed
to anticipate the customers' liking for a tape that can hold a
whole movie. The VHS format produced by Matsushita and others
outsold Sony's products.
Sony did not give up easily. In 1979 the company launched the
now famous Walkman which took the name of Soundabout in the
United States, Freestyle in Sweden and Stow- away in England.
Although he did not particularly like these ungrammatical
names chosen by his young people, he was relieved that it came
to be known as Sony Walkman the world over.
Morita had got the idea at home, and combined it with his
observation that people were listening to music in cars,
beaches and parks. Engineering was not keen because there was
no recording facility, and accountants protested at the low
price.
Morita insisted on quality music, small size (Ibuka had been
carrying a portable tape recorder the size of a briefcase) and
portability, allowing the user the freedom to do something
else while listening to music.
In 1982, Sony came out with a compact disk (CD) player. It was
the first digital consumer electronics product. Its launch had
a tremendous effect on the record market.
This was closely followed by its camcorder in 1985, which made
home movie-making unbelievably easy. Many families around the
globe took to recording events like birthdays and weddings on
video.
Sometimes, too good a product may not sell. Sony's digital
audio tape recorder did not take off because recording
companies fearing piracy did not support his high-fidelity
product.
Morita practised regular reporting on research and
development. He held monthly meetings where top executives
gathered to hear reports from researchers. As more and more
research was being conducted, he felt there was a need for
department heads to know what others were doing.
To achieve this, they had a Technological Symposium every
month where division heads and researchers could discuss their
work- in-progress. Besides this, Sony also organised a
technological fair once a year for company staff only.
Marketing wizard
Morita had clear thoughts and concepts about marketing. He
related an occasion when he was passing by an antique shop; he
saw a customer buying an antique from the shop and paying a
high price for it.
Morita was not the least attracted to the product but the
customer seemed to be pretty happy with it. The customer's
behaviour intrigued Morita and taught him a principle: "That
no sale can be achieved unless the buyer appreciates the value
of the merchandise."
This he initially put into practice for the sale of Sony's
tape recorders He did likewise for every new product that Sony
came out with. There was a constant need to educate the
customers. Sony set about training and increasing the number
of persons who could communicate to the customers the
usefulness and value of their products.
The people trained included the salesmen, dealers and others
who could explain to a customer the benefits of the product in
a way he could understand.
To Morita, a marketing task was a communication task.
Therefore Sony exported its own products and did not use
trading companies. He himself went to the US to access the
market.
Sony always took customers and their attitude towards
technology into consideration. This helped Sony to create new
things five to 10 years ahead, in keeping with their motto
that "An enterprise is not all well off by being well off only
today."
Sony's market concept was brand identification and brand
responsibility. This meant that customers could expect high
quality and advanced products. In many ways, Morita and Sony
were ahead of their times. While many Japanese companies were
making products for others -for example, Pentax for Honey-
well, Ricoh for Savin, Sanyo for Sears -Sony stuck to its
products alone.
Morita and friends helped to change the notion that
made-in-Japan meant shoddiness to one that meant quality
products. Morita relied on his instinct to guess what
customers wanted. Sometimes, he was wrong but more often, and
in crucial products, he was right.
Sony depended on short life cycles emphasising speed and
efficiency. Thus it was not surprising to see many
competitors imitate and copy them. Sony was the trend-setter.
"He complemented technological wizardry with marketing
ingenuity," says Fortune magazine of Morita.
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