Complete SWOT Analysis of Panasonic – Explained

Updated on: Sep 15, 2021

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Panasonic is a Japan-based brand dealing in all types of electronic and home appliances etc. It was founded almost a century ago. It ranks 7 as the largest consumer electronic company in the world by sales. Panasonic has become a well-trusted brand in the industry. Panasonic’s main products are consumer electronics, construction, rechargeable automobile batteries, industrial systems, home renovations, avionic systems, real estate, software, and home appliances.

In this blog, we will discuss the SWOT Analysis of Panasonic. Also, check out our other blogs to get more information about different companies.

Let’s start with some background information on Panasonic.

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About Panasonic

brand logo of Panasonic -SWOT Analysis of Panasonic | IIDE

Panasonic Corporation, previously Matsushita Electric Industrial Co, is a large Japanese multinational electronics corporation headquartered in Kadoma, Osaka. Panasonic was founded by Konosuke Matsushita in 1918 basically as a lightbulb socket manufacturer. In the late 20th century, Panasonic became the world’s largest maker in consumer electronics. Panasonic provides a variety of products and services, including rechargeable batteries, automotive and avionic systems, industrial systems, and home restoration and construction. The key people of Panasonic are Shusaku Nagae, the chairman, Masayuki Matsushita the vice-chairman, and Kazuhiro Tsuga. 

Panasonic Group launched a new brand motto in 2013, “A Better Life, A Better World,” to make consumers’ lives better.


SWOT Analysis of Panasonic

SWOT Analysis of Panasonic | IIDE

Swot analysis stands for Strengths, Weakness, Opportunities, and Threats, It is a technique for assessing these four aspects of any business. By using SWOT Analysis the company or business can get the best advantage which can reduce the chance of failure, by understanding what the company is lacking in. 

1. Strengths of Panasonic

  • Performance Consistency– The main strength of Panasonic is that it is mostly loved for its performance consistency. As we all know, Japanese products are mostly known for their good quality. Today consumers are more likely to buy products that have a long-lasting performance and high quality. Panasonic products have a  long-lasting performance consistency which encourages the consumers to buy the product. So whenever you buy any Panasonic product it will surely give you good performance consistency. 
  • Wide Presence– The main factor contributing to the strength of Panasonic is its wide presence in the industry. Today, Panasonic is spread across all continents and multiple regions contributing to its success. Due to its wide presence across the global market, it has to compete with the different competitors available across the globe. Panasonic has gained a lot of customers from all over the world which has inbuilt a sense of satisfaction within the brand. 
  • Strong Marketing Communication– The marketing communication of Panasonic is said to be strong because it does not only target one regular product marketing rather it targets different product marketing. It also targets a mass audience with its strong advertising strategy. It frequently uses brand ambassadors who convey the brand’s message to the audience. If there would not be any strong marketing communication, it could bring a loss to the company’s profile and sales. Panasonic has always targeted all sectors of their products in their marketing strategy and advertisement. 
  • Product Quality And Brand Trust– The best part of Panasonic is its Product Quality, which generates brand trust in the consumer’s mind. Its goal is not to shift millions of cheap, low-quality products because if they do so then the consumer can generate a sense of dislike towards the products which in turn can affect their overall sales. Panasonic produces long-lasting electronics of high standards like Air conditioners, Mobile phones, refrigerators, and all electronic appliances. Due to their high-quality products and long-lasting performance Panasonic has generated trust among its consumers. 
  • Sponsorship– Panasonic owns and operates the Japanese Professional Football League and Rugby Club, as well as partnering with the AFC Champions League. Panasonic has also sponsored many events such as FIFA, Cricket, Olympics, Formula 1 Racing, and others. Sponsoring such events not only gains consumer attention but also creates a better image of the company. 


2. Weaknesses of Panasonic

  • The focus becomes an issue– As Panasonic deals with many different products, focus becomes an issue because it is said that Panasonic has some Internal Management issues which in turn affect the credibility of the product and also can generate a sense of dislike among the consumer. Consumers can think that If the Internal management of Panasonic is not strong then how come consumers can get good quality products and support of Panasonic. At the same time, Panasonic handles 3.3 lakh people, and managing such a large company with a variety of products becomes overbearing. 
  • The constant presence of competition– Due to the constant presence of competition, there is a continuous rise in price to capture a higher market share. Panasonic is constantly competing in the market with Toshiba, LG, Samsung, Sony, Phillips due to which the consumer has a variety of options to search for which results in capturing market share. 
  • Fake Replica– With the development of technology and advanced printing solutions it has become easy to copy any brand’s logo. Panasonic has also faced the same issue, where some manufacturers are illegally selling low-quality products under the name of Panasonic which is affecting the main parent brand.  Also, they are selling products at a cheaper price under the name of Panasonic where the consumer is finding the product cheaper and trying to buy it but after some time they realize that the product is not worth it which in turn generates a sense of distrust within the consumer and the brand affecting the main parent brand.    
  • Low Revenue– Panasonic is said to be the world’s leading consumer products manufacturing brand. But the growth and annual profitability have been declining One of the main reason for Panasanoic’s low revenue is the illegal selling of products under the name of Panasonic where consumer find it difficult to buy the product because they think that Panasonic product doesn’t generate a good quality product Also Panasonic growth and annual profitability has been declining due to the Covid-19 Pandemic situation. 


3. Opportunites of Panasonic

  • New Technology-New technology provides Panasonic to practice different pricing strategies in the new market. So that the firm will be able to maintain its loyal customers by providing new services and attract new customers through other value-oriented propositions.
  • Opening up of New Markets– Because of the new Government agreement, Panasonic has got an opportunity to open new markets to engage more customers. Also, the emerging of new markets in Asia and Latin America presents an expansion of new opportunities. 
  • Creating New Innovations / Differentiation– If Panasonic creates innovations in their products, it will surely be advantageous for the brand. 
  • Decreasing the cost of Transportation– If Panasonic decreases the transportation cost, lowering the prices can bring down Panasonic’s products, which can provide an opportunity for the company- to gain market share by increasing its profitability or to pass on the benefits.
  • Building better customer service– For any brand, its main center of attraction is its consumers, if the consumers are not satisfied then the brand would not develop and do well in the market so for that every brand has to try building its customer services. Panasonic is known to have customer service issues and thus focusing on customer service problems will be able to attract more customers for the brand.


4. Threats of Panasonic

  • Intense Competition– Panasonic’s business can be harmed by fierce competition. Panasonic faces competition from Samsung, Sony, LG, Philips, and Toshiba which are directly competing with different products of Panasonic. It is because each one of them has its different strengths-better quality, lower price, and even better customer support.  
  • Changing Technological Market– The technology market changes every week, or even every day. Who knows whether after 10 years the majority of Panasonic products will be relevant? The segment is dominated by technology, and if one technology gets outdated then the other needs to be caught fast.
  • Economic Recession– Due to the pandemic of Covid-19 has brought the global economic recession because of worldwide lockdown and shutting down of businesses. It has impacted the growth, sales, and profitability of Panasonic. Panasonics annual revenue and net income have dropped by 4.32% and 18.8%. 
  • Black Market– Panasonic also competes with illegally smuggled electrical devices on the black market, where many believe they may get a better deal on the streets. They think that buying from the legal channel could cost them money which is not good for the company. Buying from the black market can give the consumer a low price, but it can’t give them the best quality and performance consistency compared to the legal channel. 
  • Regulatory Pressure- Over the period, they have grown more aggressive about the enforcement of relevant laws and oversights of businesses. Panasonic has maintained a strong brand image and also a good financial position which helps them to overcome the pressure to a large extent and still if the government continues to remain aggressive in their attitudes towards businesses then fast expansion can become challenging.  
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In conclusion, By reading the SWOT Analysis of Panasonic, we can conclude that Panasonic is an overall star brand that has a huge scope and potential in the market, also it has created a reputation for its innovative skills, premium quality by competing in the world’s toughest market. Panasonic has surely gained consumers’ attention but has also gained their trust by providing them with different products. 

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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