1. Why had Sony been successful in the past (e.g., with the introduction of the Walkman, PlayStation, the CD, and the VAIO computer line)?

2. What was Mr. Idei’s assessment of strategic alliances versus M&A? Do you agree or disagree with his conclusion? Support your assessment.

3. Explain how Sony’s organizational design (structure, culture, and control) inhibited its ability to respond to the competitive challenge of Apple in the digital portable music industry.

4. What could Sony have done differently to avoid failure? What lessons can be learned?

5. Explain how restructuring (as activist investors are recommending) would produce benefits for Sony. What would be the benefits of splitting up Sony as proposed? What would be its drawbacks?