Andy Lack’s first annual meeting at Sony was in April 2003, the same week that Apple launched the iTunes Store. He had been made head of the music division four months earlier, and had spent much of that time negotiating with Jobs. In fact he arrived in Tokyo directly from Cupertino, carrying the latest version of the iPod and a description of the iTunes Store. In front of the two hundred managers gathered, he pulled the iPod out of his pocket. “Here it is,” he said as CEO Nobuyuki Idei and Sony’s North America head Howard Stringer looked on. “Here’s the Walkman killer. There’s no mystery meat. The reason you bought a music company is so that you could be the one to make a device like this. You can do better.”

But Sony couldn’t. It had pioneered portable music with the Walkman, it had a great record company, and it had a long history of making beautiful consumer devices derma21. It had all of the assets to compete with Jobs’s strategy of integration of hardware, software, devices, and content sales. Why did it fail? Partly because it was a company, like AOL Time Warner, that was organized into divisions (that word itself was ominous) with their own bottom lines; the goal of achieving synergy in such companies by prodding the divisions to work together was usually elusive.

Jobs did not organize Apple into semiautonomous divisions; he closely controlled all of his teams and pushed them to work as one cohesive and flexible company, with one profit-and-loss bottom line. “We don’t have ‘divisions’ with their own P&L,” said Tim Cook. “We run one P&L for the company.”

In addition,  Sony worried about cannibalization. If it built a music player and service that made it easy for people to share digital songs, that might hurt sales of its record division hk business registration. One of Jobs’s business rules was to never be afraid of cannibalizing yourself. “If you don’t cannibalize yourself, someone else will,” he said. So even though an iPhone might cannibalize sales of an iPod, or an iPad might cannibalize sales of a laptop, that did not deter him.

That July, Sony appointed a veteran of the music industry, Jay Samit, to create its own iTunes-like service, called Sony Connect, which would sell songs online and allow them to play on Sony’s portable music devices. “The move was immediately understood as a way to unite the sometimes conflicting electronics and content divisions serviced apartments hong kong,” the New York Times reported. “That internal battle was seen by many as the reason Sony, the inventor of the Walkman and the biggest player in the portable audio market, was being trounced by Apple.” Sony Connect launched in May 2004. It lasted just over three years before Sony shut it down.