Can Sony Still Do A Turnaround?

There was a time when Sony Corp (ADR) (NYSE: SNE) was considered a forerunner in the hardware and technology space.

Rob Enderle, president and principal analyst at Enderle Group, was recently on CNBC to discuss Sony's restructuring plan and what business verticals are driving the company down.

"The indicators are a little more positive than they have been, but that company is still incredibly complex and it's very difficult to manage a company with this kind of breadth," Enderle said. "I still maintain that they need to go back to basics, get the company back to a core they can build from because that’s typically the strategy that turnaround that works long-term. As they leave the complexity in place, the problem is when you have got too many balls in the air you're going to end dropping some of them."

"Actually, I think the weak link is the content. The idea in acquiring content was to use content as an advantage to sell the hardware -- that never materialized. The content became a drag on the hardware."

When asked about the revenue projections made by Sony's CEO from its movie and music business, Enderle said, "Well, with music and movies it depends on the hits. So, it's very difficult to make an accurate forecast because as we've seen a lot of time big blockbusters don't deliver the audiences that folks think they're going to deliver. It's all about rolling the dice,"

Shares of Sony recently traded at $21.87, up 1.11 percent.