Sony's Battery Recall Fiasco
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Case Details:
Case Code : MKTG162
Case Length : 11 Pages
Period : 2005-2006
Pub Date : 2007
Teaching Note :Not Available Organization : Sony Corporation
Industry : Computer / Consumer Electronics
Countries : USA, Japan
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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.
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"It (Dell Computer's recall of Sony-manufactured
batteries) will be the largest safety recall in the history of the consumer
electronics industry."1
- The United States Consumer Product Safety Commission,2
in August 2006.
"Sony's brand is severely damaged. I think it's going to
be a question whether they can be in the battery business at all."3
- Roger Kay, President, Endpoint Technologies Associates,
Inc.,4 in September 2006.
"The company (Sony) should have investigated
the cause of the battery problem more quickly. The worries over the
batteries spread as a result."5
- Ryoji Chubachi, President and Electronics CEO,
Sony Corporation, in December 2006.
Sony's Total Recall
On September 28, 2006, Sony Corporation (Sony), the, world's second-largest
consumer electronics manufacturer, announced a worldwide recall of its
lithium-ion battery packs manufactured by its subsidiary, Sony Energy Devices
Corporation6 (SEDC).
These battery packs were supplied to various notebook7
computer manufacturers like Dell Computers (Dell), Hewlett-Packard Company (HP),
Fujitsu Ltd. (Fujitsu), Lenovo Group Limited8
(Lenovo), Apple Inc.9 (Apple), and Toshiba
Corporation (Toshiba).
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Even before Sony's announcement, many leading notebook manufacturers like Apple
and Dell 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.
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Sony explained that this had happened because of
microscopic metal particles in the battery cells that could cause the
cell to short circuit, if they came into contact with other parts of the
battery cell.
Sony said that in most cases, the battery would shut down, but in rare
instances, it could overheat and catch fire.
Additionally, Sony had to recall 90,000 battery packs in the Asia
Pacific region, some of which were used in its own VAIO notebooks. |
Sony's Battery Recall Fiasco
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