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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the issues and challenges faced by large multinational corporations with regard to handling a product safety crisis
• and Understand the importance of clear and effective communication with customers in the event of a controversy/crisis.

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