- 1 Panasonic SWOT Analysis 2021
- 2 SWOT Analysis of Panasonic
- 3 Strengths In The SWOT Analysis Of Panasonic
- 4 Weaknesses In The SWOT Analysis Of Panasonic
- 5 Opportunities In The SWOT Analysis Of Panasonic
- 6 Threats In The SWOT Analysis Of Panasonic
- 7 Limitations of SWOT Analysis for Panasonic
- 8 Weighted SWOT Analysis of Panasonic
Panasonic SWOT Analysis 2021
Panasonic is mainly recognized as a consumer electronics brand worldwide. However, there are some less well-known aspects of its business that are also operating profitably. The brand operates in four business areas – consumer electronics, automotive, B2B, and Housing.
Its global footprint is one of its most important strengths. A customer-focused company, Panasonic strives to build better lives for people around the world.
The brand has some important strengths and is getting aggressive about its future growth in key regions of the world including Asia and Europe.
Despite a small fall in revenue in 2016, the brand registered good profits. Now, Panasonic is geared for its next stage of growth for which it will start reorganizing its business. However, a large global business also means large risks including economic, political, and structural.
This is a SWOT analysis that highlights how the brand is doing in its respective areas and the key pillars driving performance for Panasonic around the globe.
This SWOT analysis will help you understand the key strengths and weaknesses before the brand as well as its opportunities and challenges in the short and the long run.
SWOT Analysis of Panasonic
SWOT analysis refers to Strengths, Weaknesses opportunities, threats, and strengths it is a strategy to evaluate these four elements of any company.
With SWOT analysis, the business or business will gain the most benefit that can decrease the chances of failure by knowing the areas that the business is weak in.
Strengths In The SWOT Analysis Of Panasonic
- Wide Presence The primary reason for the popularity of Panasonic is the fact that it’s an international brand that has a large reach as well as distribution across many continents and several regions. It is found in more than 100 countries and revenues are split between Japan, Asia, the USA, and Europe.
- Convergence in Performance Consistency of Performance This brand has been adored due to its consistent performance throughout the years. If you buy a Panasonic item it is guaranteed that it will be high in terms of quality. Japanese manufacturing is known for its high quality. In addition, Panasonic has been a firm that has consistently provided high-quality items since the beginning.
- Flexible to market The company hasn’t restricted itself to a single product and has been bringing in additional products from time. It has eliminated products from its inventory that did not have any weightage. In the end, it has reduced the range of products is being trimmed and is maintained.
- Products portfolio and Quality of the product Panasonic’s product range Panasonic is enormous. It has products in Eco Solutions, Appliances, Industrial products, Communications, Automotive, Energy, Healthcare and Manufacturing. The best aspect of it is Panasonic is a well-known and trusted name in every one of these areas and has an impressive revenue share within these categories.
- The brand’s equity and trust in 2017, Panasonic was valued at $6.9 Billion and it is ranked 97 on the global 2000 top brands according to Forbes. This shows that the company has good brand equity as well as trust in Panasonic’s brand on the market.
- Powerful marketing communication The HTML0 standard is a strong marketing communications Marketing at Panasonic is well-known as solid. Panasonic often uses the brand’s ambassadors that communicate a message to the brand. In addition, the brand doesn’t focus on advertising its standard and normal products. Instead, it is focused on the marketing of different products like the cube conditioner. Alongside these differentiated products it also targets the large market through regular advertisements. It utilizes both ATL as well as BTL types of communication. Sponsorships Panasonic has a variety of sponsorships within its arsenal. It’s a prominent sponsor of FIFA, Formula 1 racing, NASCAR, filmmaking, Olympics, Basketball, Cricket, and more. Its sponsorship model is generally different according to the business it is seeking in its marketing campaign.
- R & D investments Investments in R&D Although the company’s revenue has increased, the R&D investments of Panasonic are consistent every year. It invests a significant portion of its earnings in the field of research and development that keeps the company ahead of less prestigious competitors.
- The most prominent company in the electronic industry If you create the BCG matrix for the electronics industry then Panasonic is definitely a shining star within the BCG matrix due to their large percentage of market shares however simultaneously due to the high growth potential in the electronic industry. The sector is growing particularly in the less developed and developing countries in which there are lots of potentials to expand. Being an industry leader in these areas will certainly pay off for your company.
Weaknesses In The SWOT Analysis Of Panasonic
- No Cash Cow – Panasonic has been the mainstay in the BCG matrix across almost every industry, but it does not have cash cows that are major market shareowners. There is no product that is a cash cow to Panasonic. This could be due to the fact that each product is targeted at specific segments that are surrounded by a vast amount of competition, and consequently, market share is always under pressure.
- Focus is a problem Focus becomes a problem With the proliferation of products, focus can become an issue with Panasonic. Panasonic is known for having internal management issues. In the same way, managing 3.3 lakh employees and running an immense company that has many products can be overwhelming.
- The bottom line is dragged down because of competition Because of the continuous increase in competition bottom line is weakened and there are constant price wars on the market for a larger market share.
Opportunities In The SWOT Analysis Of Panasonic
- Emerging economies Developing economies: The most lucrative chance that is available to Panasonic is to take on emerging markets in Asia or other continents. Panasonic is too accustomed to Japan just to the Japanese market and must expand its operations over as many countries as it is able to.
- Marketing: A number of recent brands have proven that investment in marketing, as well as branding, can yield benefits to the brand. While Panasonic market better but it doesn’t market in the same way that an established brand would and, therefore, its investments in marketing needs to be increased.
- Making differentiated products Innovations: A product that is innovative has been a long time coming from the company of Panasonic. differentiates and advances give an advantage of being the first to market to the brand that has created these kinds of innovative products. Samsung through its diverse smartphones and smart TVs has demonstrated its effectiveness in differentiating. Panasonic simply needs to concentrate more on creating differentiation quicker instead of becoming just a follower of the same direction.
- Making better client service Customer service: Whatever the category, if the service is of the highest standard The company’s brand grows quicker and has better customers retention figures. Panasonic is known for having problems with customer service and the focus on issues with customer service is a good idea for the brand.
Threats In The SWOT Analysis Of Panasonic
- China is a major competitor. China Competition from China While Japan produces high-quality products, China manufactures for a mass of people. This means that concurrence from China is significant to the Japanese company. The number of new products being developed by China is causing a decline in Japanese sales. Japanese products are always more expensive, but recently, Chinese products perform better and are of high quality. Of course, Japanese brand names will struggle because of the high cost and margin of products from China.
- The dependence is dependent on technology Dependence on technology This category is controlled by technology. If one technology is obsolete, the next has to be caught up quickly. In contrast, when one company develops innovative technology, the other brands are given six months to adopt the same technology, or else they’ll lose market share. This dependence on technologies is always an issue for Panasonic.
- Market competition There is an omnipresent market competition in the various industries within which Panasonic operates, so its market share is always in danger of being taken over.
- Federal regulations Changes in energy norms for air conditioners are an excellent illustration of regulations from the government taking into consideration the operation. The government frequently changes the standards for energy use in air conditioners. The rating of the stars is affected, and the manufacturers need to modify their entire product line. Similar situations can occur with the numerous products manufactured by Panasonic. In the end, Panasonic is overall a top brand with enormous scope and potential in the marketplace. However, like all brands, there are areas for improvement that Panasonic is able to be successful in overcoming.
Limitations of SWOT Analysis for Panasonic
While SWOT analysis is a popular tool for strategic planning, SWOT analysis is extensively used to plan strategic strategies However, the analysis has some limitations.
- Certain aspects or capabilities of an organization could be both a strength as well as a weak point at the same. This is among the most important limitations that SWOT analyses have. For instance, changing environmental regulations could be an opportunity and a threat to the company. However, however it could also be an opportunity in the sense that it can allow companies to be in a position to compete with their competitors or even gain an advantage over competitors if they are can develop their products quicker than competitors.
- SWOT doesn’t provide a way to get a competitive edge and therefore it shouldn’t be considered a solution in and of itself.
- The matrix is merely an initial point of reference for an analysis of how the suggested strategies can be implemented. It offered an evaluation window, but no implementation plan that was based on the strategic competitiveness of Panasonic
- The SWOT model is a static analysis and analysis of the existing conditions and a small number of potential modifications. As the environment, circumstances threats, strategies, and circumstances evolve, the dynamics of a competitive setting cannot be analyzed in one single matrix.
- SWOT analysis can make a firm over-emphasize one external or internal aspect when formulating strategies. There are interrelations between the important external and internal elements that SWOT cannot reveal. might be crucial.
Weighted SWOT Analysis of Panasonic
Given the previously stated weaknesses of the SWOT analysis/ matrix, the management of corporations has decided to assign the weightage of each of the strengths and weaknesses of the business.
They also consider the likeliness of events happening in the near future and the impact they can be on the performance of the company.
This method is known as the Weighted SWOT Analysis. It’s superior to basic SWOT analysis since using weighted SWOT analysis Panasonic managers are able to focus on the most important elements and ignore the less crucial ones.
It also eliminates the problem of the long list, which is when organizations create lengthy lists but do not address any of the elements that are considered to be crucial.
Panasonic is a well-known brand, both in terms of technology and finance. It is a household electronics manufacturer with a worldwide footprint, and also has a presence in three different business segments, including B2B, housing, and Automotives.
One of its strengths is its ingenuity in technology, as well as its expanding emphasis upon R&D. The company has been financially successful as its operating earnings have been growing and so have net earnings too.
However, the company needs to undergo some restructuring before it is able to move further into international markets.
A complicated business structure can be an obstacle to profitable growth. The competition has also become more aggressive in their strategies for sales and marketing.
Although regulatory and competitive pressures have been increasing and the regular big and small economic fluctuations in some of its markets can also be a sign of an issue, Panasonic is poised for expansion based on its more advanced technology and the focus on research and development.