Swot analysis of Panasonic. Panasonic Corporation or Matsushita Electrical Industrial Co. Ltd is an electronics manufacturing Japanese multinational company. Konosuke Matsushita was the founder of Panasonic, and he laid the foundation of the company on March 13, 1918. The headquarter of the electronic company is in Kadoma, Osaka, Japan.
Panasonic’s main products are consumer electronics, construction, rechargeable automobile batteries, home renovation, industrial system, avionic system, real estate, software, and home appliances.
According to an estimate, the annual revenue of Panasonic in 2020 was 68.914 billion dollars, and it has decreased by 4.32%. Out of which, the net income of the consumer electronic brand was 2.077 billion dollars, and it has declined by 18.8%.
Panasonics top competitors are Fujifilm, Nikon, Canon, Electrolux, Blue Star, Whirlpool, Philips, Sony, Haier, LG, and Samsung. However, the company has employed more than 259,358 employees to manage its various operations across the world.
Today, we’ll discuss the swot analysis of Panasonic. It’s going to focus on the internal and external factors impacting the world’s leading consumer electronics manufacturing company. Here’s the swot analysis of Panasonic as follows;
Strengths of Panasonic
Panasonic owns the Japanese Professional Football League and Rugby Club and the company partners with the AFC Champion League. However, the brand has also sponsored mega international events like English Football Club Nottingham Forest, Toyota Racing Formula One, NASCAR Busch Series, Olympic Games, Boston Celtic, and many others. Sponsoring such tournaments to attract the attention of a lot of customers and present a better image of the company.
Along with sponsoring international events, Panasonic also uses various channels like billboards, social media platforms, print media, TV channels, and others for the promotion and marketing of its company’s products.
The sponsorships and marketing have given Panasonic global recognition in the international market. The consumer electronic company is one of the largest companies in Japan.
Panasonic has established many manufacturing units in various countries like India, Indonesia, UK, Serbia, Netherland, the USA, and many others. In fact, the company falls under the category of the world’s top 20 semiconductor manufacturers and top 5 TV producers.
Panasonic offers a diverse range of products and services to cater to the needs of various types of customers. It ranges from consumer electronics, home renovation, batteries, construction, and real estate to industrial.
According to an estimate by Forbes, the market capitalization of Panasonic is 18 billion dollars. The consumer electron brand falls at the 256th position of Global 2000 companies in 2020. The high market value and top-ranking show the excellent position of the company.
The worth of Panasonic assets is over 60 billion dollars along with the strong market position. It gives the company a leading role in the internal consumer electronic market.
Weaknesses of Panasonic
The technology and advanced printing machines have made it easier to copy the logo of any of the brands. That’s what is happening with the logo of Panasonic, some manufacturers are illegally selling their poor quality products under the disguise of Panasonic. It’s jeopardizing the main parent brand.
It’s no doubt Panasonic is the world’s leading consumer products manufacturing brand. But the growth and annual profitability of the brand have been declining even before the pandemic of covid-19.
Opportunities available to Panasonic
The market demand for semiconductors has been growing extensively for the past few years. Panasonic is already operating its business in the consumer electronics industry. Now, the company should exploit this opportunity and launch semiconductor devices that businesses need.
The usage of smartphones and other electronic devices is increasing all over the world. Especially the developing countries like Latin American and Asian countries have got great growth potential. Therefore, Panasonic should consider expanding its market there. It would multiply the company’s growth.
Healthy trends and environmentally sustainable trends are growing across the globe. People are now preferring brands those brands are following healthy and environmentally standards and practices. Therefore, Panasonic should follow the environmentally safe practices and market them, it would help the company to attract new customers.
Threats Panasonic has to face
The pandemic of covid-19 has brought the global economic recession because of worldwide lockdown and shutdown of businesses. It has also impacted the growth, sale, and profitability of Panasonic. However, the annual revenue and net income of the company have dropped by 4.32% and 18.8%.
Panasonic is also competing with the illegal smuggled electronic products in the black market. When people could the same products at a lower price in the streets, they won’t buy through the legal channel which is good for the company.
The rapid technological innovation and development are putting more pressure on Panasonic to keep in terms of increasing research and development costs. That’s why it has become difficult for the company to maintain revenue while keeping up with the trends at the same time.
Conclusion: Panasonic Swot Analysis
After a careful study of the swot analysis of Panasonic, we’ve concluded that Panasonic is indeed the world’s leading consumer electronic manufacturing brand. The economic recession, increasing competition, black market, and fake products are some of the main challenges. Panasonic should utilize its resources and brand name to expand its market.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.