hi I’m Evan Carmichael and welcome to another edition modeling the Masters
another edition modeling the Masters
another edition modeling the Masters where we look at how you can model the
where we look at how you can model the
where we look at how you can model the successful strategies of famous
successful strategies of famous
successful strategies of famous entrepreneurs today we’re going to look
entrepreneurs today we’re going to look
entrepreneurs today we’re going to look at akio morita a man who turned a
at akio morita a man who turned a
at akio morita a man who turned a bombed-out department store in japan
bombed-out department store in japan
bombed-out department store in japan into one of the most successful consumer
into one of the most successful consumer
into one of the most successful consumer electronic companies in the world Sony
Akio Morita was a Japanese businessman
Akio Morita was a Japanese businessman and co-founder of Sony Corporation along
and co-founder of Sony Corporation along
and co-founder of Sony Corporation along with Masaru Ibuka a bucha was 38 years
with Masaru Ibuka a bucha was 38 years
with Masaru Ibuka a bucha was 38 years old and Morita was 25 when they started
old and Morita was 25 when they started
old and Morita was 25 when they started the company founded just after world war
the company founded just after world war
the company founded just after world war ii and based nagoya japan the company
ii and based nagoya japan the company
ii and based nagoya japan the company was established with initial capital of
was established with initial capital of
was established with initial capital of just three hundred and fifty dollars in
just three hundred and fifty dollars in
just three hundred and fifty dollars in a bombed-out shop that had been
a bombed-out shop that had been
a bombed-out shop that had been abandoned Japan at the time was known
abandoned Japan at the time was known
abandoned Japan at the time was known for making low quality products and
for making low quality products and
for making low quality products and Morita was determined to reverse that
Morita was determined to reverse that
Morita was determined to reverse that stigma he is often cited as a man who
stigma he is often cited as a man who
stigma he is often cited as a man who increased the value of the words made in
increased the value of the words made in
increased the value of the words made in Japan supported by innovative product
Japan supported by innovative product
Japan supported by innovative product launches like the Walkman Sony became
launches like the Walkman Sony became
launches like the Walkman Sony became the first Japanese company to ever be
the first Japanese company to ever be
the first Japanese company to ever be listed on a New York exchange and has
listed on a New York exchange and has
listed on a New York exchange and has revenues in the trillions of dollars
revenues in the trillions of dollars
revenues in the trillions of dollars Morita helped with his country back on
Morita helped with his country back on
Morita helped with his country back on the map while building his own
the map while building his own
the map while building his own reputation across the world in 1998 a
reputation across the world in 1998 a
reputation across the world in 1998 a Harris survey revealed that Sony was
Harris survey revealed that Sony was
Harris survey revealed that Sony was ranked the number one brand name by
ranked the number one brand name by
ranked the number one brand name by American consumers ahead of coca-cola
American consumers ahead of coca-cola
American consumers ahead of coca-cola and General Electric
and General Electric
and General Electric so the next question is how can you
so the next question is how can you
so the next question is how can you model the success of Akio Morita here
model the success of Akio Morita here
model the success of Akio Morita here are three action items that you can put
are three action items that you can put
are three action items that you can put to use into your business today action
to use into your business today action
to use into your business today action item number one trust your gut
item number one trust your gut
item number one trust your gut there’s never enough information to make
there’s never enough information to make
there’s never enough information to make a decision that you can be 100% sure of
a decision that you can be 100% sure of
a decision that you can be 100% sure of by the time the information becomes
by the time the information becomes
by the time the information becomes fully available it’ll be too late either
fully available it’ll be too late either
fully available it’ll be too late either someone else would have scooped the idea
someone else would have scooped the idea
someone else would have scooped the idea from you or the window of opportunity
from you or the window of opportunity
from you or the window of opportunity will have closed as entrepreneurs we
will have closed as entrepreneurs we
will have closed as entrepreneurs we have to trust our gut when making
have to trust our gut when making
have to trust our gut when making decisions using the best information
decisions using the best information
decisions using the best information that we have available in 1978 Sony
that we have available in 1978 Sony
that we have available in 1978 Sony developed the prototype product that
developed the prototype product that
developed the prototype product that would allow people to listen to cassette
would allow people to listen to cassette
would allow people to listen to cassette tapes while they were on long flights
tapes while they were on long flights
tapes while they were on long flights the project was put on hold as market
the project was put on hold as market
the project was put on hold as market research indicated that no consumer
research indicated that no consumer
research indicated that no consumer would buy a tape recorder that did not
would buy a tape recorder that did not
would buy a tape recorder that did not have the capacity to record and that
have the capacity to record and that
have the capacity to record and that earphones would hold the product back as
earphones would hold the product back as
earphones would hold the product back as they were seen to be irritating and
they were seen to be irritating and
they were seen to be irritating and potentially associated with hearing loss
potentially associated with hearing loss
potentially associated with hearing loss despite the advice given to him by his
despite the advice given to him by his
despite the advice given to him by his marketing department Morita chose
marketing department Morita chose
marketing department Morita chose instead to trust his gut
instead to trust his gut
instead to trust his gut he told Sony SAP that they were going to
he told Sony SAP that they were going to
he told Sony SAP that they were going to create a worldwide culture of headphone
create a worldwide culture of headphone
create a worldwide culture of headphone wearers and in 1979 Sony released the
wearers and in 1979 Sony released the
wearers and in 1979 Sony released the Walkman it went on to sell over 330
Walkman it went on to sell over 330
Walkman it went on to sell over 330 million units Morita then gave the
million units Morita then gave the
million units Morita then gave the following advice for business owners
following advice for business owners
following advice for business owners carefully watch how people live get an
carefully watch how people live get an
carefully watch how people live get an intuitive sense as to what they might
intuitive sense as to what they might
intuitive sense as to what they might want and then go with it don’t do market
want and then go with it don’t do market
want and then go with it don’t do market research
action item number to find a good
action item number to find a good company name and product name the names
company name and product name the names
company name and product name the names you choose your company and products our
you choose your company and products our
you choose your company and products our people remember you by
people remember you by
people remember you by if they’re too hard to pronounce
if they’re too hard to pronounce
if they’re too hard to pronounce difficult to spell are not easy to
difficult to spell are not easy to
difficult to spell are not easy to recall then you lose out on the
recall then you lose out on the
recall then you lose out on the opportunity of having customers talk
opportunity of having customers talk
opportunity of having customers talk about you to their friends and coming
about you to their friends and coming
about you to their friends and coming back as repeat buyers Sony’s original
back as repeat buyers Sony’s original
back as repeat buyers Sony’s original company name was Tokyo jooshin kogyo
company name was Tokyo jooshin kogyo
company name was Tokyo jooshin kogyo kabushiki kaisha long and difficult to
kabushiki kaisha long and difficult to
kabushiki kaisha long and difficult to remember in English the company decided
remember in English the company decided
remember in English the company decided it would need to change its name
it would need to change its name
it would need to change its name to better serve the North American
to better serve the North American
to better serve the North American market trying to find the new name
market trying to find the new name
market trying to find the new name Morita found that sonís is the Latin
Morita found that sonís is the Latin
Morita found that sonís is the Latin word for sound he thought its meaning
word for sound he thought its meaning
word for sound he thought its meaning was appropriate considering their
was appropriate considering their
was appropriate considering their industry however he didn’t think that it
industry however he didn’t think that it
industry however he didn’t think that it was catchy enough Morita decided to
was catchy enough Morita decided to
was catchy enough Morita decided to combine sona’s with Sonny a nickname
combine sona’s with Sonny a nickname
combine sona’s with Sonny a nickname that had become popular amongst American
that had become popular amongst American
that had become popular amongst American kids Morita thought Sonny would help
kids Morita thought Sonny would help
kids Morita thought Sonny would help portray the image of the company as a
portray the image of the company as a
portray the image of the company as a youthful one with lots of energy and
youthful one with lots of energy and
youthful one with lots of energy and bright future ahead with that the Sony
bright future ahead with that the Sony
bright future ahead with that the Sony Corporation was formed
Corporation was formed
Corporation was formed similarly when Sony first released a
similarly when Sony first released a
similarly when Sony first released a Walkman Sony’s u.s. division considered
Walkman Sony’s u.s. division considered
Walkman Sony’s u.s. division considered the name Walkman to be improper English
the name Walkman to be improper English
the name Walkman to be improper English and changed the product to the sound
and changed the product to the sound
and changed the product to the sound about for the American market other
about for the American market other
about for the American market other divisions also began using different
divisions also began using different
divisions also began using different names until Morita put his foot down and
names until Morita put his foot down and
names until Morita put his foot down and insisted that everyone used the same
insisted that everyone used the same
insisted that everyone used the same name Walkman became such a success that
name Walkman became such a success that
name Walkman became such a success that is listed as a word in almost every
is listed as a word in almost every
is listed as a word in almost every major dictionary
action item number three look after your
action item number three look after your people if you’re building a company
people if you’re building a company
people if you’re building a company beyond yourself you’ll quickly realize
beyond yourself you’ll quickly realize
beyond yourself you’ll quickly realize how important it is to have the right
how important it is to have the right
how important it is to have the right people in place and to look after them
people in place and to look after them
people in place and to look after them money is important to them but don’t
money is important to them but don’t
money is important to them but don’t forget that people want to feel
forget that people want to feel
forget that people want to feel appreciated challenged and be a part of
appreciated challenged and be a part of
appreciated challenged and be a part of a team that’s working on important
a team that’s working on important
a team that’s working on important problems
problems
problems here’s akio morita is advice the most
here’s akio morita is advice the most
here’s akio morita is advice the most important mission firm manager is
important mission firm manager is
important mission firm manager is develop a healthy relationship with his
develop a healthy relationship with his
develop a healthy relationship with his employees to create a family feeling
employees to create a family feeling
employees to create a family feeling within the corporation a feeling that
within the corporation a feeling that
within the corporation a feeling that employees and managers share the same
employees and managers share the same
employees and managers share the same fate we will try to create conditions
fate we will try to create conditions
fate we will try to create conditions where persons could come together in a
where persons could come together in a
where persons could come together in a spirit of teamwork and exercise the
spirit of teamwork and exercise the
spirit of teamwork and exercise the heart’s desire the technological
heart’s desire the technological
heart’s desire the technological capacity I believe people work for
capacity I believe people work for
capacity I believe people work for satisfaction I believe it is a big
satisfaction I believe it is a big
satisfaction I believe it is a big mistake to think that money is the only
mistake to think that money is the only
mistake to think that money is the only way to compensate a person for his work
way to compensate a person for his work
way to compensate a person for his work people need money but they also want to
people need money but they also want to
people need money but they also want to be happy in their work and proud of it
so remember trust your gut
so remember trust your gut find a good company name and product
find a good company name and product
find a good company name and product name and look after your people I wanted
name and look after your people I wanted
name and look after your people I wanted to end the video today by sharing one of
to end the video today by sharing one of
to end the video today by sharing one of my favourite true stories about Akio
my favourite true stories about Akio
my favourite true stories about Akio Morita Akio Morita was born into a
Morita Akio Morita was born into a
Morita Akio Morita was born into a family that had been in the Sakae
family that had been in the Sakae
family that had been in the Sakae brewing business for over 15 generations
brewing business for over 15 generations
brewing business for over 15 generations from his childhood it had always been
from his childhood it had always been
from his childhood it had always been assumed that Morita would continue the
assumed that Morita would continue the
assumed that Morita would continue the family tradition of making sake he had
family tradition of making sake he had
family tradition of making sake he had begun being groomed to take over the
begun being groomed to take over the
begun being groomed to take over the family business by the age of 10
family business by the age of 10
family business by the age of 10 at which time his father even made him
at which time his father even made him
at which time his father even made him attend all of the company’s board
attend all of the company’s board
attend all of the company’s board meetings in just a few years
meetings in just a few years
meetings in just a few years Morita have become an expert on
Morita have become an expert on
Morita have become an expert on everything from monitoring the brewing
everything from monitoring the brewing
everything from monitoring the brewing process to evaluate in quality the sake
process to evaluate in quality the sake
process to evaluate in quality the sake that their factories were producing to
that their factories were producing to
that their factories were producing to managing their workers but while Morita
managing their workers but while Morita
managing their workers but while Morita was learning the ins and outs of the
was learning the ins and outs of the
was learning the ins and outs of the family business so too did he discover
family business so too did he discover
family business so too did he discover that his interest was not in sake after
that his interest was not in sake after
that his interest was not in sake after all
all
all Morita realized that he was not destined
Morita realized that he was not destined
Morita realized that he was not destined to keep the family tradition alive
to keep the family tradition alive
to keep the family tradition alive much the disappointment of his father
much the disappointment of his father
much the disappointment of his father and followed his true passion for
and followed his true passion for
and followed his true passion for mathematics and physics which led him to
mathematics and physics which led him to
mathematics and physics which led him to founding Sony
thank you for joining me for another
thank you for joining me for another edition of modeling the masters I hope
edition of modeling the masters I hope
edition of modeling the masters I hope you enjoyed I’d love to hear your
you enjoyed I’d love to hear your
you enjoyed I’d love to hear your thoughts if you want to leave a comment
thoughts if you want to leave a comment
thoughts if you want to leave a comment below and stay tuned for the next
below and stay tuned for the next
below and stay tuned for the next episode
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