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Sony Aibo Presentation
Sony Aibo Presentation
SONY
AIBO
Presented by :
Group 4 Section A
The Problem
Failure to position the product to appeal to
two different consumer mindsets (Japan
and US)
Unable to categorize the product as
consumer needs vary across societies
The product remains unprofitable for Sony
at current production levels
Possible Causes:
Situational Analysis
Strengths:
Association of Sony brand name
Sony is market leader AIBO is the first
commercially available robot
Weaknesses:
Not part of Sonys core competencies
electronic, games, and entertainment
Situational Analysis
Opportunities:
Social: Baby boomers in the US market
Technological: The research holds the
potential of being extremely valuable to
external high tech companies
Political: Government agencies have a
keen interest in how new technology can
improve its operations
Turn the robotic pet into a learning tool at
schools or an automated caretaker at aging
homes
Situational Analysis
Threats:
Competitors: Honda's Asimo uses a
platform recognition and network integration
technologies similar to the AIBO
Technological: A high-tech company such
as Sony and its competitors are always
threatened by a high rate of technological
obsolescence
Economic: By the nature of the product
categories in which they compete, Sony and
its industry offers many high-end, luxury
products
US
Positioning
Value
proposition
An interactive robotic
dog could be used for
emails, notifications
Consumer
Need
Consumers more
functionality driven;
Consumers averse to
technology; AIBO had
failed to convey the
value effectively
Gap
Alternatives
Stop Production
Reasons:
Sony AIBO is unprofitable
Does not fit with core product strategy
American market has a history of
associating robots with enemies
Alternatives
Market Penetration
Alternatives
Market Development
Attract the early adaptors and lead
towards a mass market
Functional AND emotional positioning
Build primary demand
Market is large and will offer long-term
growth
Short-term profitability because low
R&D
Alternatives
Product Development
Exploit the tech-savvy, innovator market
that it currently targeted
Develop the AIBO to the point of being
less of a continuous innovation and
more like a discontinuous one
Purchase because of the novelty
Alternatives
Diversification
Two diversification strategies
a) diversification towards a highly functional
AIBO which performs duties and is targeted
towards adults
Development of a highly functional product that
answers the question, But what does it do?
American consumer is pragmatic
Low short-term profits
Most aligned with Sonys core competencies of
producing high-tech electronics
Alternatives
b) a primitive-version AIBO that is geared
towards children
Implementation