Panasonic Corporation is a worldwide leader in the development and manufacture of electronic products in three business fields: consumer, components & devices, and solutions.
Wide product diversification With its four major business domains, Panasonic boats a wide variety of products and services ranging from but not limited to household appliances to PVC (audio, visual and communications) devices.
Well established and reputable company identity The Panasonic Corporation was founded in 1918 and has since been providing excellent products and services to its consumers. Its reputation rests on its high- standards of manufacturing. Highly recognizable and marketable brand name and image The Panasonic brand has achieved global stature and has become a familiar and trusted brand locally and internationally. Emphasis on product innovation Panasonic has strives to become one of the leading innovators of electronics.
The brand itself has become associated with high-technology and excellent performance. Echo-friendly solutions and Energy conservation The company is a leading example of contributing proactive and extensive approach to the development of the natural environment by introducing their cutting edge energy-management technologies.
Unstable financial performance The corporation as a whole is often prone to escalating business costs due to frequent restructuring and losses in net sales.
Struggling TV and semiconductors sector Panasonic has experienced a drop in performance in the TV marker as evidenced Strata SWOT sample By Domestication’s Poor marketing approach Panasonic is lacking with marketing approach, where they should put more efforts n promoting their products like in media such as social networking, radio, billboards etc. And sponsoring some events which results to low trust and turning new lifestyle to other brand. Drastic reduction of manpower due to personnel cuts Just last year, the company reported that it has reduced the number of workers in its headquarters by 50% due to restructuring operations.
Growing global and local consumer and industrial electronics market With the advent and progress of newer technologies, the electronics industry is always rapidly growing. Panasonic can exploit this and reach wider markets by utilizing its highly diversified product business segments. Rapidly increasing demand for echo-friendly devices With energy conservation a major issue in today’s societies, Panasonic can use their technologies to contribute to the development and progress of the natural environment.
Fast-rising local economy The Philippines is now one of the fastest-growing economies in SE Asia and this simply means good business for Panasonic Philippines. The local economic environment provides a suitable condition for local and foreign investments and business partnerships. Strategic alliances and Joint ventures with other electronics firms With an agreement between Panasonic to other firm they are able to share resources or knowledge, to be beneficial to all parties involved.
In this way the Panasonic will have supplement to internal assets, capabilities and activities, with access to needed resources or processes from outside players such as suppliers, customers, competitors, companies in different industries.
Panasonic is always experiencing constant and stiff competition within the electronics industry that can have damaging effects on a company however big or mall. These include cutting down prices to attract more consumers and cost-cutting which is a company’s mechanism for coping with losses in revenues.
Cost-cutting often results in employee lay-offs and even shutting down whole branches. Maturing or near obsolete technologies, products or services. Panasonic endeavors to provide its customer with the highest quality and most technologically advanced components currently available in the commercial marketplace. As technology advances, it sometimes becomes unfeasible to continue production of outdated or older technology components. This phenomenon leads to continuation on some of its products, some of which includes some types of its capacitors, switches, relays, audio, components, etc.
Potential economic slowdown Naturally, the local economy has a major effect on any firm. If the growth of the Philippines’ rising economy suddenly starts declining or even grinds to a halt, the whole consumer base will have their purchasing power reduced. People will have to live with tight budgets. If this scenario occurs, Panasonic Philippines will start seeing a gradual decline in patronage from its customers and significant losses in sales.
CHAPTER V ALTERNATIVE COURSES OF ACTION
(1) Improve struggling TV sector with echo-friendly and energy saving solutions by strengthening its marketing approach.
As stated earlier in this study, Panasonic Philippines has reported a fairly sizeable decline in net sales in the TV market. One of the probable reasons behind this is a lackluster marketing strategy. Panasonic should put an emphasis on its advertising and public relations to gain an even wider customer base. The strategy can focus on utilizing more effective media vehicles such as the internet by promoting energy saving solutions and echo friendly. This, together with the rising popularity of surfing the web on portable devices, means more people are aware of their plasma and LCD highways.
Advantages: Newer and improved marketing schemes can reach a wider audience and exponentially increase Panasonic customer base.
Disadvantages: This can lead to increased spending on advertising, personal selling programs, sales promotions and public relations or endorsements.
(2) Stabilize company financial performance and devise new pricing policies and strategies to maintain longevity and position within the competitive electronics industry. To cope with the losses in sales and decline in performance, Panasonic should consider in devising and implementing new pricing strategies.
Changing prices on their products to break even is simply not enough, especially in the midst of stiff competition and unpredictable market demands. Market Orientation is particularly suitable in this scenario. Panasonic conducts research from the target market and then set prices based on the compiled information. The company can also use Dynamic Pricing which employs information technology to respond to market fluctuations and large amounts of data gathered from customers. This allows Panasonic to adjust prices of goods to correspond to a customer’s willingness to pay.
It also has the basis of time wherein the company can charge different rates according to peak and low seasons (holidays, summer vacations, etc. ). By gaining some measure of financial stability, Panasonic can better expect long- term success in the near future. This can be done through improvement on some financial initiatives: identification and discontinuation of obsolete inventory (controllers), outlining strategies for identifying and selling idle/non-core assets, ND maximum utilization of existing assets or resources.
Advantages: If done correctly, these methods can help the company out-price and outcome competitors and eventually win over more consumers.
Disadvantages: New pricing policies and financial strategies typically involve corporation-wide restructuring and, thus, require time and organization. It also involves high risk-taking and potential backfires.
(3) Use product innovation to replace obsolete products or services and improve maturing technologies. One of the issues facing the company is ever-mounting operating costs.
This is due to a frequent need of restructuring to correspond with certain losses in performance aspects. Seeking and implementing newer, more effective and efficient production methods will guarantee that the company will recuperate from drops in sales and even increase and improve output. The other issue, having its TV sector beaten by more aggressive competitors, is also a cause for concern. One of market. Introducing newer types of television with better capabilities and quality will attract new customers and regain the support of loyal ones.
These improvements in technology may be in the form of more energy-efficient TV’s, TV’s with enhanced internet and wireless capabilities or even simply thinner and wider flat screens.
Advantages: Radical improvements in technology, more often than not, determine which product or service leads the market. Improvements in production technology can exponentially improve a firm’s output and efficiency.
Disadvantages: This requires increased spending on Research and Development which typically involves hiring people with the needed expertise and acquiring new materials.
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