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INTRODUCTION ...................................................................................................................................... 1

VISION STATEMENT .............................................................................................................................. 2

MISSION STATEMENT ........................................................................................................................... 2

THE SWOT MATRIX ................................................................................................................................ 3

INTERNAL FACTOR EVALUTION MATRIX (IFE MATRIX) ............................................................ 4

EXTERNAL FACTOR EVALUTION MATRIX (EFE MATRIX) .......................................................... 5

COMPETITIVE PROFILE MATRIX (CPM MATRIX) ........................................................................... 6

STRATEGIC POSITION AND ACTION EVALUTION MATRIX (SPACE MATRIX) ........................ 7

BOSTON CONSULTANT GROUP MATRIX (BCG MATRIX) ............................................................. 8

INTERNAL EXTERNAL MATRIX (IE MATRIX) ................................................................................. 9

GRAND STRATEGY MATRIX .............................................................................................................. 10

QUANTATIVE STRATEGIC PLANNING MATRIX (QSPM) ............................................................ 11

List of figures

Figure 1 SPACE Matrix Plotting ................................................................................................................ 7

Figure 2 The BCG Matrix ........................................................................................................................... 8

Figure 3 The Grand Strategy matrix ......................................................................................................... 10

List of tables

Table 1 The SWOT Matrix ......................................................................................................................... 3

Table 2 IFE Matrix...................................................................................................................................... 4

Table 3 EFE Matrix .................................................................................................................................... 5

Table 4 CPM Matrix ................................................................................................................................... 6

Table 5 SPACE Matrix Computation ......................................................................................................... 7

Table 6 Internal External Matrix ................................................................................................................. 9

Table 7 The QSPM ................................................................................................................................... 11

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The Strategy Formulation Framework of Panasonic Corporation

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Panasonic Corporation formerly known as Matsushita Electric Industrial Co. Ltd. is a Japanese

MultiNational electronics corporation headquartered in Kadoma, Osaka, Japan. Its main business is in

electronics manufacturing.

Panasonic was founded in 1918 by Konosuke Matsushita as a vendor of duplex lamp sockets. It has

grown to become one of the largest Japanese electronics producers, alongside Sony, Toshiba and Canon.

In addition to electronics, it offers non-electronic products and services such as home renovation

services. Panasonic is the world's fifth-largest television manufacturer and is among the world's 20

largest semiconductor vendors. From 1935 to October 1, 2008 the company name was "Matsushita

Electric Industrial Co., Ltd. On January 10, 2008, the company announced that it would change its name

to "Panasonic Corporation", with effect from October 1, 2008 to conform to its global brand name

"Panasonic”. The name change was approved at a shareholders' meeting on June 26, 2008 after

consultation with the Matsushita family. Panasonic is one of the world's largest original equipment

manufacturers of factory installed mobile audio equipment such as head units, speakers and navigation

modules. They have been a subcontractor to most major auto manufacturers, supplying virtually every

Japanese automaker, along with Europe's largest automaker, Volkswagen and America's largest

automaker, General Motors.

Panasonic also formerly manufactured aftermarket vehicle audio products such as head units and

speakers.

On November 3, 2008, Panasonic and Sanyo announced that they were holding merger talks, which

eventually resulted in the acquisition of Sanyo by Panasonic. The merger was completed in December

2009, and resulted in a corporation with revenues of over ¥11.2 trillion (around $110 billion)

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The Strategy Formulation Framework of Panasonic Corporation

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“Panasonic aims to be the No.1 Green Innovation Company in the Electronics Industry in 2018, the

100th anniversary of our founding. We will make the ‘environment’ central to all of our business

activities and take the lead in promoting the ‘Green Revolution’ which is taking place around the world

for the next generation. Specifically, we will work to realize our vision with these two innovations.”

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“To sharpen our competitive advantage by drawing on the strengths of a diverse work force in order to

enhance innovation, growth and customer satisfaction.”

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The Strategy Formulation Framework of Panasonic Corporation

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Strength Weakness

• International presence (S1)

• Innovation (S2)

• Focus on R&D (S3)

• Strong brand image (S4)

• Best quality products (S5)

• Highly trained working staff

(S6)

• Weak financial performance

(W1)

• Quality is higher than the

price ratio (W2)

• Unfunded employee post

retirement benefits (W3)

Opportunities SO WO

• New ways of advertisings

(O1)

• Improved features &

technology (O2)

• Expansion of products and

services (O3)

• e-Commerce (O4)

• Incorporation of latest

technology in products and

services (S2, S5, O3)

• Applying innovative and

creative ways to advertise the

product by highlighting the

product features (S2, O1)

• Enhancing online services by

R&D (S3, O4)

• Taking advantage of e-

commerce to make strong

financial positioning (W1, O4)

• Application of cost affective

technology (W2, O3)

Threats ST WT

• Product substitution (T1)

• High inflation and low

income (T2)

• Competitors offering the

same at lower price (T3)

• Government regulations (T4)

• Patent the technology and

make it a competitive

advantage (S2, T1).

• Using cost effective

technology to produce quality

and affordable products to the

customers. (S2, S5, T2, T3).

• Develop proactive approach

to survive in critical

circumstances (W1, T4).

• Use cost effective strategies

and providing products at

affordable cost. (W2, T3).

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The Strategy Formulation Framework of Panasonic Corporation

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Key Internal Factors Weight Rating Weighted Score

STRENGTHS

1 International presence. 0.20 4 0.80

2 Innovation 0.15 4 0.60

3 Focus on Research and Development 0.10 4 0.40

4 Strong brand image. 0.15 4 0.60

5 Best quality products. 0.05 4 0.20

6 Highly trained Working staff. 0.10 4 0.40

WEAKNESSES

1 Weak Financial performance 0.15 1 0.15

2 Quality is high than price ratio. 0.05 2 0.10

3 Unfunded employee post retirement benefits 0.05 1 0.05

Total 1.00 3.30

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CONCLUSION

The IFE score of 3.30 represents that it is doing well in the industry. To maintain this position in the

industry they can go for latest technologies to develop their product or to launch their product.

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The Strategy Formulation Framework of Panasonic Corporation

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Key External Factors Weight Rating Weighted Score

OPPORTUNITIES

1 New ways of Advertisement. 0.15 3 0.45

2 Improving Features and Technology. 0.15 4 0.60

3 Expansion of product and services. 0.15 2 0.30

4 Online presence of the company. 0.10 2 0.20

5 Increasing concept of online purchasing. 0.10 4 0.40

THREATS

1 Product substitution 0.10 4 0.40

2 High inflation and Low income 0.10 4 0.40

3 Competitors providing products and services at lower cost. 0.05 4 0.20

4 Government regulations. 0.10 3 0.30

Total 1.00 3.25

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CONCLUSION

The EFE score of 3.10 indicates that it has ability to face threats in an efficient manner.

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The Strategy Formulation Framework of Panasonic Corporation

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Success Factors Panasonic Canon Toshiba

Weight Rating Score Rating Score Rating Score

NNNN==== Product Quality 0.10 4 0.40 4 0.40 3 0.30

OOOO==== Relative Product cost 0.10 4 0.40 3 0.30 2 0.20

PPPP==== Management 0.10 3 0.30 4 0.40 2 0.20

QQQQ==== Technology 0.10 4 0.40 4 0.40 3 0.30

RRRR==== Business reputation 0.10 4 0.40 3 0.30 3 0.30

SSSS==== Advertisement 0.20 3 0.60 2 0.40 2 0.40

TTTT==== Information systems 0.10 3 0.30 3 0.30 4 0.40

UUUU==== Market Share 0.10 4 0.40 3 0.30 3 0.30

VVVV==== Customer Loyalty 0.10 3 0.30 3 0.30 2 0.40

Total 1.00 3.50 3.10 2.80

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CONCLUSION

The rate 3.50 confirms that Panasonic is better than Canon and Toshiba.

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The Strategy Formulation Framework of Panasonic Corporation

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Y axis

Financial strength (FS) 5.50

Environmental stability (ES) -2.75

2.75

X axis Industry strength (IS) 6.00

Competitive advantage (CA) -3.00

3.00

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CONCLUSION

Panasonic lies in the aggressive quadrant of the SPACE Matrix and can follow the following strategies

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The Strategy Formulation Framework of Panasonic Corporation

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CONCLUSION

Panasonic lies on star.

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The Strategy Formulation Framework of Panasonic Corporation

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Strong Average Weak

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CONCLUSION

Panasonic Ltd. lies in the 1st Quadrant and they can use intensive, integrative and diversification

strategies.

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The Strategy Formulation Framework of Panasonic Corporation

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CONCLUSION

Panasonic Ltd. lies in the fourth quadrant and it has a strong competitive position but is in a slow growth

industry. Intensive, integrative and concentric diversification strategies can be used.

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The Strategy Formulation Framework of Panasonic Corporation

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STRATEGIC ALTERNATIVES 1 2

Penetrate Advertisement

Key External Factors W AS TAS AS TAS

OPPORTUNITIES

NNNN==== New ways of Advertisement. 0.15 3 0.60 4 0.60

OOOO==== Improving Features and Technology. 0.15 1 0.15 3 0.45

PPPP==== Expansion of product and services. 0.15 2 0.30 2 0.30

QQQQ==== Online presence of the company. 0.10 2 0.20 4 0.40

RRRR==== Increasing concept of online purchasing. 0.10 3 0.30 4 0.40

THREATS

NNNN==== Product substitution 0.10 2 0.20 - -

OOOO==== High inflation and Low income 0.10 2 0.20 - -

PPPP==== Competitors providing services at lower cost. 0.05 1 0.05 - -

QQQQ==== Government regulations. 0.10 2 0.20 - -

Total 1.00

Key Internal Factors W AS TAS AS TAS

STRENGHTHS

NNNN==== International presence. 0.20 4 0.80 4 0.80

OOOO==== Innovation 0.15 4 0.60 4 0.60

PPPP==== Focus on Research and Development 0.10 - - - -

QQQQ==== Strong brand image. 0.15 1 0.15 1 0.15

RRRR==== Best quality products. 0.05 3 0.15 3 0.15

SSSS==== Highly trained Working staff. 0.10 - - - -

WEAKNESSES

NNNN==== Weak Financial performance 0.15 1 0.15 4 0.60

OOOO==== Quality is high than price ratio. 0.05 3 0.15 - -

PPPP==== Unfunded employee post retirement benefits 0.05 - - - -

Total 1.00 4.20 4.45

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CONCLUSION

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The Strategy Formulation Framework of Panasonic Corporation

The score of second alternative shows that it is much more attractive than the first strategy therefore it

should be pursued. It’s not like that it should be solely pursued, combination can also work well. They

need to advertise their products so that it could increase their sales and make their financial performance

better.