International Marketing – Panasonic Company 1
In the recent past, trading activities has become increasingly global in some way because of the need to gather and increase the company’s financial bases. This has been attributed to increased growth and sophisticated approaches that organizations are using nowadays to conquer markets. (Hollensen, 2004) Due to modernization and advancement in technology, most businesses are beginning to explore international markets for better profits and opportunities. Advancement in technology including communication efficiency and better international relations has contributed to the promotion of the international trade. To achieve greater investments and better market opportunities in the international market, it is necessary that primary and secondary market research be done to ensure that information regarding the country is achieved. (Hollensen, 2004)
This paper will therefore look into the requirements and plans needed for Panasonic Company to enter a foreign market successfully. The main issues that will be addressed by the paper will be; country analysis using PESTEL, company analysis using SWOT, entry strategies, marketing mix and final evaluation.
Panasonic Company is part of a major Japanese company of groups known as Matsushita Group that goes back to 1918, when Konosuke Matsushita a Japanese industrialist started a small business to manufacture electrical products, his business was based in Osaka Japan. Presently, Matsushita Group has greatly grown to become a global company with more than 300 companies and a workforce of more than 250,000 employees. The
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company manufactures and markets over 15,000 different products under different names, which includes Panasonic, Technics and National among others. (Panasonic Company,
UK is among one of the well economically growing country in the Europe currently, and it is considered to be a very good country for doing business.
PESTEL analysis is used to investigate the vital factors, which affects an industry and the influence they have on a particular company or companies operating in that particular industry. PESTEL is means political, Economic, Social, Technological and Legal factors. Political factors entail government policies, which are related to the industry. The economic factors include the wider economic performance. Social factors on the other hand relates to cultural issues. Technology factors include the adaptation of new available technology and new ideas such as automation. Legal factors comprises of legal procedures, licensing, product legal descriptions and other legal factors. (Punnett and Ricks, 1997)
Political factors whereby the company have to deal with the political interferences that
may be practiced by the UK government. According to research political systems of nations affect the conduct of businesses, for example some countries practice collectivism while others practice capitalism political systems. The UK government practices
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capitalism in that it allows factors of production to be privately owned and the
government performs only limited duties that the private sector cannot perform unlike in
collectivism and communism that stresses collective goals. So Panasonic Company has
no restrictions and hence we can conclude that it enjoys good external political
environment. (Punnett and Ricks, 1997)
Economical factors which mainly deals with financial forces in the economic environment. Such factors include foreign exchange rates, currencies and global
monetary systems like the use of Euro currency, inflation, counter trade, balance of
payments, monetary policies, and fiscal policies among others. After carrying out careful
analysis of these factors Panasonic Company did not face a lot of these challenges with
but only was subjected to few of them like inflation and the balance of payments.
(Muhlbacher, Leihs & Dahringer, 2006)
Social factors are other factors that the company has to consider before going international. Forces within the society such as religion, family, social structure and education may impact positively or negatively the way Panasonic Company will market
its products. Social factors affect our attitude, opinions and interests on the way we view
products from certain companies. (Muhlbacher, Leihs & Dahringer, 2006)
Technological factors are another key factor to be put in consideration before going
global. Many companies as a result of the concept of globalization are now experiencing
advanced technologies. Globalization has taken center stage and now many firms have
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increasingly utilized the use of e-commerce or Internet marketing. The technology of production has continued to develop leading to more premium brands are being produced by the company to fulfill the new demands of the customers that keep changing with time. (Hollensen, 2004)
Legal factors are another factor that must be analyzed before going international. The
way the company operates in terms of operating rules of law for example how Panasonic Company will cope the legal rules in the UK is more important because it avoids conflicts and will enhance the success of the organization. The company is engaged in legal business practice of marketing electrical products in form of televisions, hi-fi that is permitted by the UK laws. (Daniels & Radebaugh, 1997)
A SWOT analysis
Most companies, organizations and institutions today are using SWOT analysis as a strategic method/tool for evaluating their strengths, Weaknesses, Opportunities and Threats with reference to strategic planning. SWOT analysis identifies the internal and external factors that determine the achievements a company has specified in its goals and objectives. (Cullen & Boteeah, 2005)
Strength of Panasonic Company is the image it has, market leadership, financial resources good customer care. Panasonic Company is a market leader in electrical industry, the company servers many people each day. It has many branches located in
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many countries around the world. They driving force has been introducing reliable
consumer electronics products good corporate culture, good service delivery, flexibility
and customer care. Another strength as been Brand image of the company, which makes
the company to stand out from the rest. (Cullen & Boteeah, 2005)
Panasonic Company has employed the latest technology in their technology revolution.
The versatility and diversity of Panasonic products is unequalled, having a big range of
product solution which spans from point- of –sale cash registers found in restaurants to broadcast cameras which are found in media studios. Panasonic Company also is a leader
in the field of video screen technology as shown when it installed giant video screens in
the Sydney Olympic stadium. The reputation and reliability of the company’s products
has made it possible for the company to market its products to a wide range of customers
(Cullen & Boteeah, 2005)
Panasonic Company is a market leader particularly in the area of consumer electronics
and communications equipments. The company’s communications, printing, document
management and also audio-visual solutions, can be found installed in many offices
around the world. Panasonic is currently a powerful electronic company in the whole
world; it has a good reputation of high quality electronic products, going by the quality of
products it offers. (Cullen & Boteeah, 2005)
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A weakness can be defined as any aspect of the company, which may hinder the company from attaining its objectives or goals. Usually, it covers the firm’s assets, resources, and capabilities. Latest research indicates that Panasonic Company is faced with few weaknesses which if not taken care of it may hinder the company’s success. The company’s rules, procedures, and policies are said to be weak as in some markets they have started to perform poorly. Also the human resources, that is, the workers and the management have been performing poorly of late in their respective responsibilities. Laxity on the side of the marketing managers has been pointed out and reports suggest that they have not come up with suitable marketing strategies to cope with the ever-increasing competition in the industry. (Cullen & Boteeah, 2005)
As globalisations continues to open up new markets and eliminate barriers of doing business Panasonic company will continue to have an opportunity of opening up new franchise in other countries or increase their presence in the countries where they have already established. The main opportunities lie in Asia, which has continued to witness good economic growth. Especially in expanding consumer markets in countries such as India and China or located new markets. Also there is still market in other continents as the company is serving less very small portion of the total population of the world. (Levitt, 1983)
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Competition and government policies
Since Panasonic Company is among the biggest electronic companies in the world, it is subject to harsh competition, as almost all other electronic companies will be trying to adopt and outweigh it financially. The biggest competitors of Panasonic Company are Sony Company, LG and Samsung which are posing a threat to its market share. Being a global leader in this field, Panasonic company is exposed to threats from government polices in different countries.
The existing marketing objectives and quotas of the company
The company aims at becoming a leader in the industry by the year 2010, through undertaking management objectives which, realizes the importance of coexisting with the world environment through use of latest technologies.
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Panasonic is dedicated to keeping a standard of high excellence; all manufacturing plants of the company have thorough quality control that checks all the products that are manufactured in the factory. Each product has to pass a set of tests before going to the market.
The company’s management selected to go international by trying to sell its consumer
electrical products to UK. (Chee and Harris, 1998)
Market entry mode
These are ways in which Panasonic company can seek to market its products in global market and usually depends on the quality of the company’s products and the nature of competition that rival firms employ in trying to expand there market share and to maintain there growth. There are various methods of entry to different markets and Wolf Company has to select the effective ones depending on cost, risk and the degree of control, which can be exercised over them in terms of security. The following are some of the modes of entry:
? Direct Exporting
? Indirect Exporting
? Joint Ventures
? Strategic Alliance (Cullen & Boteeah, 2005)
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Product: Panasonic Company deals with a variety of electrical products ranging from
home hi-fi systems to broadcasting equipments. The product of the company are said to
be unique as compared to of that of its competitors.
Price: Price is an important tool in competition and thus firms use it as a mechanism to
outdo themselves in the industry. The product of the company are said to be affordable to
its customers. Research indicates that the company is becoming a market leader because
of the cheap prices associated with the products.
Place: Distribution channels determine the sales of any company and Panasonic
Company has the best distributional channels that have resulted to increase in profit
levels of the company.
Promotion: Panasonic Company has engaged itself in promotional activities of its
products in UK and significant results have been achieved because consumers have
responded well in co. (Chee and Harris, 1998)
Action plan for implementation The company should plan for the activities to be carried and ensure that sufficient funds
and capital are provided to enhance the success of the programs. The strategies that have
been formulated should be implemented effectively in order to counter the moves of its
competitors. The use of pre-testing techniques while introducing the electrical products to
new markets should be utilized in order to give the management the insight of how the
products will perform in the market. The methods of entry adopted by the company
should be implemented too. (Punnett and Ricks, 1997)
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Monitoring of action plan
Constant evaluation should be carried out to ensure that the company’s marketing
activities are a success. The managers should monitor how the products are performing in
both old and new markets of the company as compared to that of its competitors thus will
be able to formulate marketing strategies that can be a success to the firm.
(Punnett and Ricks, 1997)
In the recent past, trading has become increasingly global in some way because of the
need to gather and increase the company’s financial base. Secondary research is
important before a company launches it products in a new market because it gives it vital
information about the market situation of a country. The UK market is one of the best in
the world especially when factors such as population, economic and social prospects.
This company has a chances therefore of getting a fair share of the market if it considers
all the marketing strategies suggested above.