Sony Aibo Case Study

Sony AIBO case analysis AIBO, a robotic tag doesnt do whateverthing useful at all, but provides pastime by stimulating some of the personality characteristics of a pet without the inconvenience of a real animal. According to Toshitada Doi, Sonys leading ready reckoner engineer, AIBO is a computer that provides love and healing for people. The first generation ERS-110 peck imitate chamfers behaviors, see, show emotions, learn and evolve personality. The guerrilla generation ERS-210 has voice recognition and more than(prenominal) dexterous.The new AIBO came with new softw ar package options as well. After adding wireless LAN technology, Sony has unveiled its new entertainment architecture, dubbed OPEN-R, which provided third-party developers with the ability to create any number of softw be applications as well as ironware modules. Though priced at whopping $2,500, $1,500 the countenance generation, Sonys profit margin on the AIBO was close to zero. It is the software appli cations and hardware modules developed by Sony and third-party developers that makes money for the company.AIBO has created such a stir that provided two products had in the history of Sony the original Walkman and the Playstation game console, far transcend the developers expectations. It is such a success in Japan the American securities industry is non that hot. Par of the reasons were the culture differences between these two countries. In Japan, some people live in small apartments where real pets are not allowed. And Japan has a large elderly population, to whom a companion without any inconvenience is perfect.Besides, robots in Japanese culture are heroes and Japanese are so fascinated about high-technology while to older Americans, too lifelike technology is dangerous and threatening. Apart from the culture elements, most customers were confused of what Sony was selling. The wateriness was compounded by the release of a number of low-end knock-offs. The performance of louver years, six prototypes, and millions of yens outcome, AIBO, is so obviously A-one to those cheap imitations, it is difficult to consider these knock-offs competition.At the other end of the competitive spectrum are robots that can do something&8212 perform serious household tasks. Admitting that these types of operable robots were much easier for Americans to understand, Sony has provided new software applications so that AIBOs can read emails and pre-selected websites and possessors can remotely control their AIBOs movements. With more and more software applications and hardware modules organism built on the base of OPEN-R technology, the possibilities are really limitless.As to broaden the American grocery, I think several questions should be considered before making the finding of whether Sony should begin mass advertising. What is the popularity of AIBO in America? What are the main concerns that bide Americans to reach into their pocket to pay for an AIBO? Standi ng in the Americans shoes, what do they want from a robot dog? Will sales of AIBO be touch on by the mass advertising? Is the return going to be decent to cover the cost of mass advertising? Which medium might be the best way to touch the audiences?Further analysis of American market and culture should be done before making the decision. Since Sony has created AIBO Town, a mag for AIBO devotees, and Cartoon industry is very mature in Japan, AIBO cartoon, AIBO comic books, AIBO tv set games and a series of AIBO related products can create infatuation with the robotic dogs, and the vulgarisation of robotic dogs, vice versa, will promote the sales of the derivatives. The possibilities of AIBO are limitless. With more and more applications developed, AIBO can be a functional companion.For instance, AIBO could be used to chair blind people, the sensor can get information of the owners health condition when he/she touches an AIBOs head, AIBO can play music, the owner can monitor hi s/her house when traveling, AIBO can work as a projector, etc. The price of the AIBO can not be much turn down than the cost of manufacturing cost, or the margin profit. As AIBOs are equipped with more and more functions, people have a clearer understanding of what Sony is selling and are more willing to pay for them.