Business model of Panasonic ~ Business Plan, Revenue Model, SWOT Analysis

Posted on by Aditya Jain

Introduction

Panasonic is one of the most prominent electronic corporation in the world. Non consumer products include minicomputers, telephone equipment, electric motors, chemical and solar batteries, and cathode-ray tubes. The company also has developed and marketed electronic measuring and timing instruments, copy machines, automatic traffic control devices, office automation equipment, and products in the communications, broadcasting, and solar energy fields. Business Model of Panasonic involves its Business Plan, revenue Model, its competitors, SWOT Analysis and many more.

The bulk of the company’s sales comes from foreign markets in Europe and North America, among other regions. It has manufacturing and sales subsidiaries in a number of overseas markets.

The Amazing History of Panasonic, Which Was Founded 100 Years Ago by a 23-Year-Old

Since then Panasonic has been on an upward growth path in the country with innovative product offerings, increased investments on business and various promotional initiatives. Today, Panasonic India is increasingly being seen as an Indian company, though with Japanese roots.

SWOT Analysis

Strengths

The strengths of Panasonic looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand’s strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Panasonic :

  1. Even though the company has risen the R&D investments of Panasonic have been consistent year on year and it spends a good percentage of the companies revenue in research and development which keeps the company ahead of the lower tier competitors.
  2. Panasonic is a leader in technological innovations and product development capabilities
  3. Panasonic is a leading market position garnered on strong brand equity
  4. Broad product portfolio encompassing a wide spectrum of consumer electronics
  5. Has a strong workforce of over 250,000 people
  6. Panasonic is among the top five TV producers and top 20 semi-conductor manufacturers
  7. Panasonic brand has excellent top of the mind presence due to advertising and sponsorship of events
  8. It is one of the largest Japanese electronics producers, alongside Sony, Toshiba and Canon
  9. Strong advertising of Panasonic brand using TV, print, online, billboards etc
  10. The company has been actively involved in sponsorship of global events

Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Panasonic SWOT Analysis:

  1. Because of the constant presence of competition, the bottom line erodes and there are continuous price wars in the market to capture a higher market share.
  2. High leverage combined with revenues and profits decline
  3. Panasonic faces intense competition from leaders and also faces trouble from fake replicas

Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand’s opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Panasonic SWOT Analysis:

  1. Many recent brands have shown that investments in marketing and brand building actually gives dividends for the brand. Although Panasonic markets smarter, it does not market as heavily as a mass brand should and therefore its investment in marketing activities need to go up.
  2. Focus on eco-line products to drive future growth
  3. Emerging markets of Asia and Latin America presents business expansion opportunities
  4. Growth in semiconductor market can be tapped by Panasonic

Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Panasonic are as mentioned:

  1. There is omnipresent market competition in the sectors in which Panasonic operates, thereby the market share is always under threat of conquer.
  2. Intense competition can reduce the business of Panasonic
  3. Rapid technological changes
  4. Competition with black market, parallel import and smuggled goods

Competitors

There are several brands in the market which are competing for the same set of customers.

Conclusion

Panasonic is overall a star brand which has a huge scope and potential in the market. It is a consumer electronics brand with a global footprint that also operates in three other business areas including housing, B2B and Automotives. A complex business structure becomes a hindrance to profitable growth. Its competitors have also grown quite aggressive in their business marketing and sales strategies.

 

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