Sony is predicting that robots will take over its manufacturing lines of televisions, smartphones and cameras as the entertainment conglomerate shifts its attention to services to drive sales of consumer electronics devices. Kimio Maki, head of Sony's electronics businesses, said that installing unmanned production lines was expected to cut costs 70 per cent at Sony's mainstay TV factory in Malaysia by the fiscal year 2023, compared with 2018. The group also has ambitions of using robotics in smartphone and camera manufacturing in the future, although it will maintain some factory workers. On the marketing front, sales data will be analysed using artificial intelligence to more effectively set manufacturing volume. The digitalisation push for cost efficiency comes as Sony's strategy in consumer electronics has pivoted.

One challenge that Sony has been facing is its hierarchical and siloed structure. But that was changing, Maki argued, since Sony spun off its electronics businesses into a separate subsidiary and merged audio, TV, mobile phones, cameras and medical businesses into a single organisation in April 2021. "By being brought together under a single entity and governance structure, we are now able to co-operate organically to create something new. That applies not only to making products but also to purchasing, manufacturing, product development and sales," he said.

1 Distinguish between the short run and long run with regard to the fixed and variable inputs used by Sony. 2 Comment on why it is beneficial for Sony to adopt unmanned production lines and use digitalisation.

3 Explain how Sony can achieve economies of scale through merging a range of electronics businesses into a single organisation.