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When Masaru Ibuka and Akio Morita established the Sony Corporation, their dream was to create a world-class company capable of spawning the World''s First, the World''s Smallest, the World''s Biggest, or the World''s Best consumer electronic products. During the second half of the twentieth century, Sony introduced the world to revolutionary technology in the form of the Walkman (personal stereo), Trinitron TV (high resolution colour television), and the PlayStation (video game console), thereby setting global industry standards. However, although Sony was the first company to introduce a videocassette recorder (Betamax), it was the rival VHS technology that prevailed in the market after the major videotape format war of the 1980s. Sony''s conclusion that ownership of content would enhance its ability to set industry standards lead to the company''s diversification into the fields of music, motion pictures, and financial services. This case study elaborates the growth of Sony from a small, unknown Japanese company to one of the world''s best-known companies. It provides insights into Sony''s strategy of foraying into businesses unrelated to its core electronics business, and the apparent failure in successfully merging the company''s diverse operations and extracting operational synergies. The case offers scope to discuss whether bad strategy or bad management was the reason for Sony''s failed synergies.