Sony Corporation’s Aibo: An Intelligent Decision? (Japanese version)

Tulsi Jayakumar

Product #:W34639

Supplier:Ivey

Discipline:Strategy

Setting:Japan, 2017

Details:Case (PDF) • 17 pages • 2023-07-17

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In November 2017, the chief executive officer of Sony Corporation (Sony) was preparing to announce the company’s release of its rebooted robo-pup, the Aibo, a robot equipped with sensors and actuator technologies, and powered by artificial intelligence that allowed this virtual pet to behave like a real dog. Sony, the 70-year-old iconic Japanese manufacturing company, had diverse businesses. After significant restructuring since 1999 to address its financial troubles, the company was expected, in March 2018, to post a record operating profit for the first time in two decades. How did a virtual pet business, especially one that had already proved unviable in the past, fit into such a restructuring exercise? Was Sony's Aibo an intelligent decision?

Learning Objectives

This case is suitable for a graduate-level general management or strategy course. After working through the case and assignment questions, students will be able to • understand diversification as a corporate strategy; • distinguish between competitive strategy and corporate strategy for a diversifying company; • analyze the conditions for diversification; and • evaluate a corporate strategy of diversification.

Sony Corporation’s Aibo: An Intelligent Decision? (Japanese version)

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Learning Objectives