global business environment

Topics: Panasonic Corporation, Multinational corporation, Multinational companies Pages: 16 (3274 words) Published: October 18, 2014
Executive summary
The following report is aimed at analyzing current Panasonic localization strategies in China market. Through the fully discussion and comparison, we concentrate on finding whether these strategies are best suiting for generating continuous profits and expanding marketing share for the transnational enterprise in local market. Subsequently, based on investigation, providing insightful recommendations to increase effectiveness and efficiency of the company’s operation to achieve competitive advantage and sustainable competitive advantage.

There are three main sections involved in localization problems in Panasonic Company. Firstly, current customer localization strategy should be updated, as the improvement of Chinese peoples’ lives, nowadays there is a huge change of customer demands and preference, such as high quality and multifunctional requirement for TV design. Secondly, under strong influence of Japanese culture, current human resource management have some disadvantages, such as lacking of sufficient number of local staffs, complex hierarchical structure in the organization decreasing the efficiency of decision-making and local staff promotion and welfare issues. Thirdly, distribution channel should adapt to local market situation with Chinese characteristics, such as eliminate unnecessary direct selling all over the country, concentrate on collaboration with factories store and establish E-commence selling products through the online shop.

The most interesting finding through the report refers that, implementing web-based tools and technologies of supporting online payment will certain benefits Panasonic in distribution channel aspects especially for sales transaction carried out on the local famous online shop such as in Taobao, Jingdong.

Table of Content

1.1Background of Panasonic & Panasonic China market
Japanese giant--Panasonic is referring to one of the largest and leading electronic product manufacturers and outstanding performer in the world and recognized as world’s well-known brand. It stands for the depth and diversity of its research capabilities, which spending $5 billion annually on research and development. The company’s slogan is “Ideas for life”. What’s more Panasonic, is also famous for its manufacturing expertise, high quality and sophisticated products since 1918(Panasonic, 2014). Now it has more than 230 companies around the world with more than 250,000 employees. Among them there are as many as 54,000 employees in China. In the year 2006, the total annual sales reached more than $76 billion. It was initially called Matsushita Electric until year 2008, which then changed to Panasonic. Its products cover 14 areas of business compromising of digital network products, white domestic appliances, brown goods, components and parts, and industrial equipment (Panasonic, 2014). In the year 1978,China went into the global economy at the same time attract tremendous influx of foreign capital, after Chinese leader Deng Xiaoping visited to Japan, he met with Konosuke Matsushita, the founder of Panasonic on that year, Panasonic began to entered into China market in 1987 with significant amount of investment.

1.2 Panasonic Current Declines
During the past two decades, Panasonic had enjoyed great benefits in emerging market such as lower cost of labor, higher demand from consumer, less barriers for setting up factories, lower cost for land renting and administering. However, nowadays as accelerated globalization as well as increased competition, there are more and more competitive electronic manufactures’ giants in the world, such as South Korea national brand Samsung, China famous brands Haier, Chang Hong, and the other Japanese giant Sony. Under this globally competition and inappropriately specify local customers’ demands and prefence, there is a significant decline on sales of Panasonic particularly in TV and air...
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