Sony aibo case study analysis


Sony AIBO: The World’s First Entertainment Robot

If this is carefully managed, then the growth in the customer base will likely result into more financial gains. The rationale for proceeding with the idea under the current conditions can be defined to be feasible. This is because of the fact that the company is in a position to undertake the necessary costs that will be required in order to make the product attractive in the United States. The market is still young in terms of the acceptability and popularity of the AIBO and other robots making it viable for Sony to invest significant resources in order to popularize the product in America.

Competitor action can be defined not to be very challenging and this is largely due to the fact that robot development has not significantly been fully achieved with the existing products which are similar in the market not been very advanced as compared to the AIBO. With the launch of every product in the market, significant risks are always bound to exist.

Sony AIBO: A Marketing Dilemma

These risks are considered very important and necessary and thus there is always the need to ensure that a company takes the necessary steps to ensure that it protects, controls and minimizes the loses that may be incurred as a result of these risks. The major political risks that may affect the revamped AIBO mainly revolve around legislation and political interests. The congress is usually responsible for passing the bills and once unfavorable bills are passed into laws then they limit the ability of a company to engage in business. In the case of the AIBO which is a foreign product, legislator may limit it in the sense that it may impose impossible conditions for doing and engaging in business in America with the main objective of protecting the local interests.

Environmental risks that can be associated with the revamped AIBO mainly revolve around its manufacture, whether or not it pollutes the environment.


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It is unlikely that the AIBO will incur any environmental risks especially if it does not produce the AIBO in industries which pollute the air with gas emissions. The financial risks that relate to the budgetary allocations is a significant risks since the AIBO is being launched into the American market and the cost allocations and estimates at this time are very important and should be considerably allocated. If the company engages in a very high capital intensive approach in terms of capitalization then it may become harder to regain their money and even tricky if the AIBO fails in the US market.

Sony Aibo Case Analysis - Words | Bartleby

The gender risks will always relate to the market target with which the product plans to associate with. Opting to target a specific gender could lead to forgone opportunities if the product appeals to the opposite gender and the company fails to target them result into a lot of vulnerability of this market to competition.

The social risks can be associated with the financial abilities of the different members of the society who form the various social classes. This is because the market is large enough with individuals who are economically empowered and can afford the revamped AIBO.

The market is also characterized with a lot of potential buyer who want to fill the void and emptiness created in their homes as a result of work and ageing. This may be achieved through the use of case studies, interview and other forums that will encourage them to relate with the market directly in trying to identify what expectations potential consumers may have of the AIBO.

Once this is fully achieved then careful planning should be considered necessary so as to ensure that once the product is launched into the market then individuals are not disappointed.

Sony Aibo ERS-1000 Review: It’s the Ultimate Robot Dog!

The product was seen as advancement in the field of technology since the AIBO could perform several tasks that were not common with earlier robots. The Japanese market is very responsive to virtual toys and with the development of the AIBO much success in sales has been achieved. The AIBO is considered well advanced in terms of features and benefits thereby resulting into a good market response with a significant potion of the Japanese seeking the product.

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Sony is likely to have targeted the American market because it is very large. This provides an opportunity to increase sales through a larger market share which is bound to be provided by Americans. The elderly population in America is significantly large and most of them are left to leave alone in their homes making the AIBO a very good companion for them. There is usually a lot of excitement and hype with new innovations in America making it a very lucrative market to launch and sell products. This is because the European market is significantly large which provides the AIBO with great potential for sales particularly if the market is well informed about the features and benefits of the product.

The legislation in Europe is very favorable for the company since the laws are not be restricting and limiting which would allow such a foreign company to pursue these markets with lower risks when it comes to the political situation. Most of the European economies are liberalized and greatly allow free trade which is an added advantage for a product like AIBO to make headway in such markets. Bearden, W. Dodgson, M. Gatignon, H.

Luh, S. The Sony team thought about growing the consumer market in the US but as we will see in the following analysis, there are several factors that need to considered when marketing technological advances in societies where the value proposition of a product might not fit consumer expectations 1. In the following analysis we will identify the the different options and challenges Sony had when trying to reach the American mainstream consumer.


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  • We will do that by addressing the differences between the Japanese market and the American market. To begin with, America has a very high purchasing power with approximately 30 million households, almost double than Japan. In the case of the AIBO, Americans associated the product with a piece of entertainment while in Japan, the concept of robotics has a deeper meaning positioning AIBO as the ideal companion for the elderly not toy. For example, in Japan, people are more likely to live with their parents when they are adults than in the US 4.

    Japan also has the second oldest median age in the world, while in the US the median age is 37 years, in the AIBO case those factors automatically change the product value. Share this link with a friend: Copied! Other Related Materials 3 pages.

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