Sony's Battery Recall Fiasco


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : MKTG162 For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Rs. 25 for Shipping & Handling Charges

Themes

Marketing, Crisis management, product safety / development
Case Length : 11 Pages
Period : 2005-2006
Pub Date : 2007
Teaching Note : Not Available
Organization : Sony Corporation
Industry : Computer / Consumer Electronics
Countries : USA, Japan

Abstract:

This case is about the worldwide recall of lithium-ion batteries manufactured by Sony Energy Devices Corporation, a subsidiary of Sony Corporation (Sony). In September 2006, Sony had announced a recall of its notebook batteries after leading notebook manufacturers like Apple, Inc. and Dell Computers had recalled a large number of the Sony-manufactured batteries used in their notebooks due to reports that some of these batteries had caught fire. The case discusses the impact of this recall on the company's image and the criticism leveled by analysts that Sony was slow to respond to the problem.

Issues:

» Analyze the issues and challenges faced by large multinational corporations with regard to handling a product safety crisis

» Understand the importance of clear and effective communication with customers in the event of a controversy/crisis

Contents:

  Page No.
Sony's Total Recall 1
Background Note 2
The 'Zippo' Batteries 3
The Impact of the Recall 4
Future Outlook 6
Exhibits 7

Keywords:

Sony Energy Devices Corporation, Lithium-ion Battery Recall, Product Safety and Security, Crisis Management, Notebook PC Manufacturer, Dell Computers, Lenovo Group Limited IBM, Apple Inc, Public Relations, Brand Image , Matsushita Electric Industrial Co., Sanyo Electric Co., Ltd, United States Consumer Product Safety Commission, Customer Communication, Product Management

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