Report On Panasonic Corporation - United Kingdom

Type of paper: Report

Topic: Company, Business, England, Market, Corporation, Commerce, Kingdom, United Kingdom

Pages: 7

Words: 1925

Published: 2020/11/06

Internal and External Environment of Panasonic Corporation-UK

For any corporation, the stakeholders and employees require to obtain a basic understanding of their company’s performance, to enable activities such as investing or making long time contracts with each other. For this reason, the company’s market situation is assessed using different mechanisms. The environmental analysis helps in obtaining the details in regards to performance of the organization in the market, and its internal situation. One of the best ways for assessing the performance of the company is the use of SWOT analysis. The word is a short form, indicating strengths, Weaknesses, Opportunities, and Threats. A company that has a lot of strengths and opportunities in its analysis is most likely subject to steady growth. The company often grows and enlarges to cover the wider market niche. However, with the presence of many threats and weaknesses, the company is most likely performing poorly is subject to failure or losses. The major purpose of the SWOT analysis is the identification of strategies that will help meet the firm capacities and market demand.

SWOT Analysis of Panasonic UK

Panasonic Corporation UK has major strengths that help it in maintaining the large market share and therefore maximizing sales. The company therefore maximizes its profits, making it highly investable owing to its productivity.

Capabilities of technological innovations and product development

Panasonic UK has the required technological innovations and capabilities to produce best quality products. It helps in ensuring that the company remains at the upper hand in producing the most technologically advanced equipment, despite the existence of high competition levels. To maintain this capability, the organization must adopt and use the most new technology, maximizing their production levels and therefore building customer loyalty and trust into their products and organization as a whole.

It is among the largest electronics producers, alongside Sony, Toshiba and Canon in Japan

Panasonic UK has a very wide market capitalization, and has plenty of loyal customers all over the world. It helps in ensuring that the company has steady demand at all times. The company is therefore able to maximize its sales and profits through the betterment of customer loyalty, as a competitive advantage over rival companies. With the strengthening of its position in the market share, the company can maximize its sales, and outdo the competition from the market.

Panasonic UK has a leading market position due to strong brand equity

The corporation has a leading stake in terms of market share and is therefore at a competitive advantage over its rivals. The other companies do not match the brand popularity, leading to receipt of steady competition from the organization. It maximizes their competitive advantages, ensuring that the organization is highly profitable (Varadarajan and Ramanujam, 2010, p. 470).

Through sponsorship events, the company has brought together the best personnel for the task

Panasonic Corporation indulges in sponsorship events in terms of education and training to acquire the required tasks to work in a technological firm. Through this method, the company has acquired a pool of skilled labor and managerial board. It helps the company in making better business decisions, and the pool of skilled labor ensures that the organization remains productive and innovative over its rivals (Clark and Lacey, 2007, p. 199). In this way, the organization constantly betters its market stake and customer loyalty. All these amount to competitive advantages over rivals and thus bettering the organization’s market state.

The presence of a strong workforce

The corporation possesses a strong workforce that amounts to maximum productivity and innovativeness in the organization. The large pool of labor ensures that the organization remains highly productive and meets the market demand. This maximizes the profits of the corporation, and ensures that the organization remains at the front in terms of productivity and innovativeness (Aaker 2011 p. 120).

The company possesses a wide spectrum of electronic products

As discussed in the introduction, the company consists of other subsequent branches, which ensures that the organization remains at the top in terms of product differentiation. It maximizes brand recognition and customer loyalty to the company. Through this factor, the company betters its market possession and capitalization.

It is among the top five TV producers and top twenty semi conductor producers worldwide

Panasonic Corporation UK has a major strength, which is of being among the best Television producers all over the world. The company focuses on the strategy of maiming the use of technology in their TVs. For this reason, the company betters its market capitalization maximizes its stake in terms of market possession. The company is also among the top 20 producers of semi-conductors in the world, making it highly profitable due to the expected annual sales (Yahoo! News Network, 2015, p. 1). The company is thus highly profitable and reliable for investment.


The existence of stiff competition from rival companies
The existence of robust rivals such as Sony, Toshiba and others, the company is prone to face stiff competition from them. It limits their profitability levels and hinders growth of the organization. The industry is highly competitive, and thus each company must develop competitive advantages to tackle the competition (Aaker 2011 p. 160).

The presence of counterfeit products

In countries such as China, there is production of counterfeit products, matching the brand names of various companies. Other companies in the name of Panasonic, limiting the company’s success in the electronic market, have produced many counterfeit products.


Eco-line product focus
Panasonic UK is best known for its quest in becoming the world’s most green company, through its purpose of ensuring that it limits its destruction of the environment (Chan, Chiou and Lettice 2011: 76). The company seeks to maximize the production of eco-line products that do not harm the environment. In this case, the company betters its customer loyalty, and is subject to steady growth and increased market share.

Growth in the semi-conductor market

In the United Kingdom, the company has potential of growth in the semi-conductor industry. The company can extend its sales, maximize production to ensure that it satisfies the existing market need, and demand (Yamashita, 2008, p. 93). With such a strategy, the company maximizes its profits and is able to build more customer loyalty.


Intense competition
Panasonic UK faces a lot of competition as discussed. Rival companies include Sony, Samsung, Toshiba, LG, Philips, and Canon (Yamashita, 2008, p. 94). These companies are in an identical industry, and therefore Panasonic must maximize its productivity to keep up with the competition. Lack of elaborate measures poses threats to the organization.

Rapid technological changes

Over the recent years, there have been major technological changes and the industry is therefore not stable yet. The companies must adopt the recent technology to better their products, and lack of innovativeness hinders growth and the company receives stiff competition from rivals. Panasonic is thus faced with the role of ensuring that it remains relevant, through keeping up with the recent technologies.

Competing with smuggled goods, parallel imports and counterfeits

Panasonic is faced with a great inconvenience, in that it has to face competition from very cheap products. Counterfeits, for example, are low quality, and therefore low-priced. The company losses its sales to the counterfeit products, which people consider cheaper, despite their low quality. Smuggled goods are very cheap due to the lack of taxation, making it difficult for Panasonic to compete with them (Chan, Chiou and Lettice, 2011, p. 79).


Political Analysis
The United Kingdom has a democratic and stable system of governance that maintains a strong influence on laws (PESTLE, 2009, p. 1). In fact, the United Kingdom has an influential position in global politics. Thus, Panasonic Corporation operates in a conducive business environment because of United Kingdom’s stable political environment. However, the company should be concerned with the growing tensions in the ruling coalition and the threat of terrorism. Research studies reveal that some of the British nationals are joining deadly terrorist groups such as ISIS and Al-Qaeda. Additionally, the United Kingdom has been experiencing a drop in government popularity.

Economic Analysis

The United Kingdom is among the leading economies in Europe along with countries such as Germany and France. Since the Second World War, the United Kingdom has experienced rapid growth in its domestic economy (PESTLE, 2009, p. 1). A 2003 World Bank reported that the United Kingdom was position seven among countries with the best investment opportunities. The size of United Kingdom’s economy has expanded business opportunities for Panasonic Corporation in recent years. Unfortunately, the United Kingdom was among the countries that were affected by 2008 financial crisis. The crisis eroded consumer purchasing power forcing Panasonic Corporation to either downsize its operations or seek opportunities in emerging economies. In some cases, the Panasonic U.K has responded by offering cheaper products to suit the new consumer purchasing power.

Social Analysis

The U. K. has a high level of living standards. It implies that Panasonic Corporation has a ready market for its consumer electronics because UK consumers can readily afford the company’s products. However, the company is facing slow sales because of UK’s ageing population (PESTLE, 2009, p. 1). Consumer research studies reveal that an ageing population has little demand for consumer electronics. The most favorable factor about the United Kingdom is that the country has experienced changes in customer needs towards preferences for consumer electronics. Such a change has a created an opportunity for the company to offer its consumer electronics products in the market.

Technological Analysis

The United Kingdom has a reputation of possessing high levels of scientific skills and innovative research and development resources (PESTLE, 2009, p. 1). Fortunately, Panasonic Corporation is an innovative company and has utilized the available scientific skills and research resources in the UK to offer top quality products. However, the technological advancement of the United Kingdom market has led to high competition among consumer electronics companies. An increasing number of technology firms are entering the UK market thus posing a threat to Panasonic’s existence.

Environmental Analysis

The United Kingdom actively participates in the formulation of global environmental policies. The country has been at the forefront in campaigning for environmental conservation by proposing high environmental conservation standards (PESTLE, 2009, p. 1). For instance, the United Kingdom supports the use of alternative energy and minimum gas emissions. Consequently, the United Kingdom government emphasizes that manufacturers should source for their supplies in a socially and environmentally responsible manner. The implication is that Panasonic Corporation has to source its raw materials from suppliers who conserve the environment.

Legal Analysis

The United Kingdom has a transparent and efficient legal system that promotes the freedom to do business (PESTLE, 2009, p. 1). However, there are strict laws governing copyright issues such as imitation. Panasonic Corporation has very little legal litigation because it adheres to the country’s rules and regulations.

Company Performance Review

The performance of Panasonic can be attributed to its quest of constant innovativeness, and adoption of new technologies. The company is always at the front in terms of innovativeness and product differentiation. In the electronic industry, the company has depicted exemplary performance as seen in the United Kingdom. In Ireland, the company is among the best producers of electronic products. In this way, the performance of the corporation is exemplary, and constant innovativeness will yield better results.
The company’s intention to transform into a green company is among the major attributors of its good performance review. The company seeks to be the most indulgent in matters of environmental conservation by the year 2018 (Yamashita, 2008, p. 99). It will help improve lives and better its market stake too. The company has already started its plan into transforming into an environment conservative, which has led to improvement in its performance compared to its rivals.
Panasonic Corporation has an annual turnover of £207,721,000.00 and annual profit of £2,450,000.00 (Bloomberg Business, 2015, p. 1). Since January 2011, Panasonic U.K has recorded a 1.37 percent increase in its share price. The current share price is 10.24 Sterling Pound (Yahoo! News Network., 2015, p. 1). In the United Kingdom, the company has recorded an annual turnover of more than £700 million (Experian CheetahMail, n.d, p. 1).
As a global company, Panasonic Corporation has assumed the responsibility of promoting initiatives that enhance the sustainability of people’s lives and the entire society. The company focuses on areas such as compliance with regulations, coexistence with communities, respect for human rights, and contribution to the environment. One of the most conspicuous achievements that Panasonic Corporation has recorded in the last four years was the e-Luminate Festival held in Cambridge in mid last year. It was part of the company’s “Kids School” program aimed at educating children on the how to achieve sustainable technology. During the workshop, students were encouraged to build hybrid cars and LED lanterns.

Reference List

Aaker, D. A., 2011. Brand relevance making competitors irrelevant. San Francisco, CA, Jossey-Bass. 97-190. Retrieved from
Bloomberg Business., 2015. Panasonic Corp (6752: Tokyo). New York: Bloomberg L.P. Retrieved from
Chan, H. K., Chiou, T.-Y. K., & Lettice, F. K., 2011. A Conceptual Model for Greening a Supply Chain through Greening of Suppliers and Green Innovation. 72-97. Retrieved from
Clark, T. A. and Lacey, R. A., 2007. Learning by doing: Panasonic partnerships and systemic school reform. Delray Beach, Fla, St. Lucie Press. 192-269
Experian CheetahMail., n.d. An engaging email strategy at every stage of the Panasonic customer journey - from prospect through to advocate. Retrieved from
Hamel, G. and Prahalad, C. K., 2009. To revitalize corporate performance, we need a whole new model of strategy. Harvard business review, 67(3), 63-76. Retrieved from
Horner, S. V. (2009). Board Power, CEO Appointments, and CEO Duality. Academy of Strategic Management, 8(1), 25. Retrieved from
Park, Y. and Chen, Y., 2010. A centrality analysis of the transaction relationships in Panasonic. Artificial Life and Robotics, 15(4), 395-399. Retrieved from
PESTLE., 2009. Pestle Summary United Kingdom. Retrieved from
Varadarajan, P. R. and Ramanujam, V., 2010. The corporate performance conundrum: a synthesis of contemporary views and an extension. Journal of Management Studies, 27(5), 463-483. Retrieved from
Yahoo! News Network., 2015. PANASONIC (MAT1.BE): Yahoo! Finance. London: Yahoo! Inc. Retrieved from
Yahoo! News Network., 2015. Panasonic posts $1.17 bln FY net profit, reverses huge loss. London: Yahoo! Inc. Retrieved from

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