Revival of Matsushita
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Case Code : BSTR101
Case Length : 11 Pages
Period : 2000 - 2004
Organization : Matshushita Electronics
Pub Date : 2004
Teaching Note : Available
Countries : Japan
Industry : Consumer Electronics
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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In 2002, the company launched a DVD-RAM recorder and PDP TV. According to the market researcher NPDTechworld, Matsushita captured 50% of the global DVD recorder market in the same year. It also enjoyed a 30% market share of the large screen plasma display TVs. Also its camera cellular handsets were becoming more and more popular.
At the end of the financial year 2003, Matsushita made an operating profit of $574 million on net sales of $61,680 million. The growth was attributed to the 88 V-products launched by the company, which generated sales of 1 trillion yen. MCICL had sales of US$5.9 billion in 2002. It was the first manufacturing company to make a 3G handset for commercial use. MCICL aimed to make thin, light-weight camera phones and capture 15% of the global wireless phone market by the end of 2003. In 2003, Matsushita decided to consolidate all its brands outside Japan under the single brand name 'Panasonic' by March 2004. The brand Panasonic contributed about 90% of Matsushita's sales outside Japan. As a part of its global brand strategy, a campaign "Panasonic ideas for life" was launched in 2003...
Matsushita, along with its partner Tenzing Communications, was working towards the development of an in-flight communication and entertainment system since 2001. The communication system would enable air passengers to send e-mails in flight.
The entertainment system would equip the passengers with the audio and DVD-video quality movies on demand and games. Panasonic entered into a partnership with the International Olympic Committee, for the 2006 Torino Olympic Winter Games and the 2008 Beijing Olympic Games. Under the partnership, Panasonic would be the worldwide official partner of the Olympic Committee in the category of audio, TV and Video equipment, and Recording Media relating to Audio and Moving Images, including Broadcast and Professional use. Panasonic planned to use audio/video equipment such as Astrovision large display systems, RAMSA professional sound systems, large projection systems, and other consumer electronics products to enhance viewer experience...
Exhibit I: Mission Statement
Exhibit II: Operating Profits of Matsushita
Exhibit III: New Business Domain
Exhibit IV: Business Segments