Panasonic Creates a Single Version of the Truth from Its Data important mis case study CASE STUDY
1. Evaluate Panasonic’s business strategy using the competitive forces and value chain models. Panasonic is one of the world’s leading electronics manufacturers. To be effective, their goals, objectives, culture, and activities needed to be consistent with their strategy. In order to increase their profit margin, they had to find ways to reduce costs and increase sales. For Panasonic, this meant that they needed to create a common set of data across all of their collective businesses and streamline their operations. Competitive Forces:
· Substitute products or services — the threat of substitute products is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose. Ideally, Panasonic would like to be in a market in which there are few substitutes. However, in the electronics market, products can be easily duplicated by competitors. For companies who are “first to market”, the competitive lead is often short lived. Competitors duplicate products and many will be offered with more features and at a lower price. · Customers’ bargaining power — buyer power is high when buyers have many choices of whom to buy from and low when their choices are few. To reduce buyer power (and create a competitive advantage), Panasonic must make it more attractive for customers to buy from them than from their competition. Consumers expect the price of new technology to decrease over time, and they would not accept price increases. In today’s global economy, customers quickly search the Internet to locate competing product offerings and pricing structures. · Suppliers’ bargaining power — supplier power is high when buyers have few choices of whom to buy from and low when their choices are many. Supplier power is the converse of buyer power. Panasonic is a very large manufacturer of electronic products and they compete on a global scale. By streamlining their database they would be in a better position to bargain with their suppliers who would also benefit through quality supply chain management techniques. · Threat of new entrants — is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to entering a market. Panasonic is a leading electronics manufacturer however; it must offer customers an array of electronic products that are quicker to the market than those of the competition. This strategy will enable them to create significant entry barriers to competition. · Positioning and rivalry among existing competitors — is high when competition is fierce in a market and low when competition is more complacent. Panasonic must be able to get their products to market quicker and cheaper than their competitors in order to gain any measure of first-mover advantage. Margins tend to be low in this industry and the consolidation of global data is one way of making that will allow them to keep their costs down and the efficiencies high. By following this strategy they will be able to process faster, cheaper, and more accurate that their competition. This equates to lower prices for customers and increased rivalry among existing competitors. Value Chain Model: In using this model it is important to keep in mind that a customer is only willing to spend a certain amount for a product. When organizations add value-created activities they must ensure that they will not result in increasing costs as customers will not be willing to absorb them. The result is a decline in sales and customers looking to the competitors for more favorable results. The value chain of Panasonic is very high. This company is extremely dependent upon technology to provide topnotch products to their customers. They are also heavily dependent upon technology in order to maintain their competitive advantage. The electronics...
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