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The Article Summary
This article explained about how Panasonic overcome their difficulties in expanding their market in China, and the failure to make China as a manufacturing based by using competitive advantage strategy and local adaptation. The journey was started in 1978 when Deng Xiaoping visited Japan to ask for help for modernizing China’s industries. So in 1987 Panasonic established the Beijing Matsushita Color CRT. Panasonic started to understand the Chinese market when the market of home appliances in China is increasing by 20 to 30 percent annualy, but their growth in the market was flat. It is happened because they did the product development in Japan, eventhough it is based on customer preferences study. It makes the China plant’s productivity become low. Competitors also hit Panasonic by exporting their product to US, Europe, and Southeast Asia. In 2002 Panasonic record loss, and in the following year Panasonic starts to fix itself.
In 2004 Panasonic Home Appliances Company established the China Lifestyle Research Center in Shanghai, to get the deep knowledge of Chinese customer preferences. This research center focusing on interpreting the data. They started their research to various region and income group. Here the staff needs to learn about the Panasonic’s technology. The staff also build an informal relationship with engineers from various business technology to get the technology knowledge for developing new product.
Panasonic’s market in washing machine increase up to 12% when they introduce the silver ion technology, based on their research that 90% of people in China that have washers still laundrying their underwear by hands. They worked with Jiao Tong University and showed the daata of the silver ion study to ensure their customer. Back to their home country they applied the silver ion technology for refrigerators. Since 2008, China home-appliance subsidiary has authority to make decision.
The experience in China helped Panasonic to
This article explained about how Panasonic overcome their difficulties in expanding their market in China, and the failure to make China as a manufacturing based by using competitive advantage strategy and local adaptation. The journey was started in 1978 when Deng Xiaoping visited Japan to ask for help for modernizing China’s industries. So in 1987 Panasonic established the Beijing Matsushita Color CRT. Panasonic started to understand the Chinese market when the market of home appliances in China is increasing by 20 to 30 percent annualy, but their growth in the market was flat. It is happened because they did the product development in Japan, eventhough it is based on customer preferences study. It makes the China plant’s productivity become low. Competitors also hit Panasonic by exporting their product to US, Europe, and Southeast Asia. In 2002 Panasonic record loss, and in the following year Panasonic starts to fix itself.
In 2004 Panasonic Home Appliances Company established the China Lifestyle Research Center in Shanghai, to get the deep knowledge of Chinese customer preferences. This research center focusing on interpreting the data. They started their research to various region and income group. Here the staff needs to learn about the Panasonic’s technology. The staff also build an informal relationship with engineers from various business technology to get the technology knowledge for developing new product.
Panasonic’s market in washing machine increase up to 12% when they introduce the silver ion technology, based on their research that 90% of people in China that have washers still laundrying their underwear by hands. They worked with Jiao Tong University and showed the daata of the silver ion study to ensure their customer. Back to their home country they applied the silver ion technology for refrigerators. Since 2008, China home-appliance subsidiary has authority to make decision.
The experience in China helped Panasonic to