STRATEGIC MANAGEMENT (MBA-401)

CT-2 ASSIGNMENT

GROUP - 14

Submitted To

DEPARTMENT OF MANAGEMENT STUDIES

TEERTHANKER MAHAVEER INSTITUTE OF MANAGEMENT AND

TECHNOLOGY, MORADABAD

In Partial Fulfillment of the Requirement of the Degree of

Master of Business Administration (MBA)

SESSION: 2018 - 2020

TEERTHANKER MAHAVEER UNIVERSITY

MORADABAD

Submitted to: Submitted By:

DR. AASHISH MEHRA ARHAM MEHMOOD(TMG1802074)

VIDIT AGRAWAL (TMG180242)
PRASHANT RAJPUT (TMG1802081)
LG has its headquarters in Seoul, South Korea. It is an electronics company with
over 82,000 employees working worldwide in close to 120 subsidiaries. Globally,it
had over $55.91 billion sales in the year 2014.

LG operates through different units namely; Home entertainment, home

appliances and Air Solutions, independent business area and Mobile
communications. Home entertainment deals with televisions and monitors, Car
entertainment systems and PCs for IT. Home appliances section provides washing
machines; healthcare appliances; refrigerators et cetera, with lightings and air
conditioners provided under Air conditioning and Energy Solutions.

In the independent business division, products e.g. telematics, solar cells,

compressors and storage devices are provided. The mobile and communications
division ensures all handheld gadgets e.g. tablets and handsets are customised to
suit the target market.

Life’s Good electronics was founded in 2002 and in 2011 it was the 2nd in the
world in Television manufacturing. 

LG Electronics Inc. is a South Korean multinational electronics company

headquartered in Yeouido-dong, Seoul, South Korea. 

Customer service: 1800 315 9999

Headquarters: Seoul, South Korea

Parent organization: LG Corp

Founded: October 1958, Yeonji-dong, Busan, South Korea

LG Mission Statement

We wish to maintain our hard-earned reputation for bringing added value to the
lives of consumers.

LG Vision Statement

LG Electronics constantly researches and introduces a full range of innovative,

greener products and services, and continue to be a leader in developing green
innovations. LG Electronics will realize Global Top Company in the EESH area
through corporate level EESH management system operation, energy efficiency
optimization, business site safety & health, and employee health improvement
activities. By providing differentiated customer value, LG Electronics will pursue
earth environment preservation, sustainable social advancement, and improve
the quality of life for stakeholders

LG competitors
1. Samsung
2. Sony
3. Panasonic.

Marketing mix of LG – LG marketing mix

LG electronics is a multinational company of South Korea that deals in

electronic goods. This Global Company has spread its network all over the world
with its headquarters in Seoul. It was founded in the year 1958 with the aim of
rebuilding its nation with domestic consumer goods. From a national company
to an international company it has come a long way. Currently LG electronics has
become the second largest manufacturer of television in the world. It also
comes under the top hundred brand names in the world. Some of its chief
competitors in the world market are as follows –

 Samsung
 Sony
 Videocon
Product in the Marketing mix of LG

LG electronics deals in various electronic industries like vehicle components,

mobile devices, consumer goods and home appliances. The company holds the
distinction of being the first to make the CDMA mobile digital handsets and the
first to develop the plasma TV of 60-inch. LG electronics is also the largest
manufacturer of LCD panel in the world. In the year 2010, the company took
initial steps in the smartphone industry. Its products include-

Television –

1. 55-inch OLED TV
2. 65-inch and 77-inch OLED TV
3. LG Smart TV
4. Plasma TV

 Smart Devices and mobile phones – A varied range of tablet devices and
smartphones like

1. G3,
2. G Flex
3. G2
4. A smart watch that is based on Android wear

Home Entertainment

1. Music Systems
2. Home Theatre Systems
3. BLU Ray Players
4. DVD Players

Computer products like monitors

Home appliances

1. Refrigerators
2. Dishwashers
3. Microwave Ovens
4. Vacuum Cleaners
5. Washing machines
6. Water Purifiers
7. Air conditioners

LG gives tough competition to Samsung and other top brand companies due to its
ability to have a complete chain of products. If you look at the product range of
LG, it is second to none. Thus, in the marketing mix of LG, you will find that
product is the topmost advantage of the brand.

Place in the Marketing mix of LG

LG electronics serves a worldwide market with five business units in nearly a

hundred and ten locations. Its aim is rapid and fast growth and as it can only be
achieved through globalization. It started its overseas operation with USA. In
order to sell its products LG has tied up with a number of distributors who are
given the responsibility of distributing the products efficiently and timely with
minimum of fuss. In India, the company realized that it had to be innovative in
order to capture the market. Therefore, it sent vans with company logos to every
part of the country, sometimes covering a distance of 5000km in a month, in
order to increase the awareness about its brand.

 Next, it opened its own manufacturing units in places like Noida, Bhopal etc. The
company tied up with retailers for the direct sales of its products and distributors
for the channel sales. LG has 46 branch offices that work directly with every field
of distribution. A policy of regional distribution is maintained and they follow the
policy of stock rotation. LG products are available very easily at all the malls and
supermarkets. The company has its own well-maintained showrooms to provide
every service to its customers. Online shopping for LG products is also possible at
every shopping site. The LG exclusive showrooms are known to be the most
profitable for retailers because of the product depth that LG has. Excellent
distributors and the companies focus on supply chain are the two reasons for the
success of the place element in the marketing mix of LG.

Price in the Marketing mix of LG

The pricing policy of LG consists of “cost plus fixed markup”. It means that the

policy for pricing consists of cost of the product and a reasonable profit.A special
team has been appointed to research the market in a detailed manner. Here the
prices of its competitors are collected along with the consumer’s thoughts
through extensive research. Every factor is thoroughly analyzed and after
evaluating its own costing and the market research the actual price of a product is
determined. When the company launched its products in India for the first time,
they were all of high range but later as the company opened its own
manufacturing units; it has been able to lower the prices of the products.

LG electronics has decided to follow a policy of price competitiveness for the rural
areas.  In order to reach out to the rural base in every nook and corner it has
decided to reduce the prices as increase in volume will result in huge revenues
and profits.

Promotion in the Marketing mix of LG

LG electronics has always believed in the concept of promotional advertisement.

It feels that a direct communication with the consumer is necessary to sell its
products and hence its advertisements can be seen throughout the year in
televisions, magazines, newspapers and internet. The brand also gives special
discounts to retailers and distributors who advertise regularly and who open
exclusive shops for LG. The advertisement is the maximum for newly introduced
products and for products which give high turnover like panels and refrigerators.

In order to maintain its brand name the company is accustomed to invite famous

personalities from the field of entertainment and sports. For example,
In China Kim Tae-Hee, a famous actor is its brand ambassador, whereas in India,
Akshay Kumar, the famous Bollywood actor has acted in the LG commercials. LG
became the first brand to sponsor the 1999 and 2003 world cup of cricket. LG has
also sponsored the ICC Awards and the Formula-One for five years from 2009-
2013.
Financial details of the company
SWOT analysis of LG – LG SWOT analysis

Strengths in the SWOT analysis of LG electronics

1. Global Giant: LG Electronics controls 114 local subsidiaries

worldwide, with roughly 82,000 executives and employees. LG is
an MNC and is a well-recognized brand which deals in white &
brown goods. It has always been known for its simple design,
easy to use, Innovative & reliable technology.
2. Extensive distribution system: LG being a fast moving consumer
durable company makes its products available in
the markets through its distribution partners. Because of its
pull strategy, LG observes very fast stock rotation but also has to
use dumping of stocks to the channel partners. It uses Glo-
cal strategy (be global act local) to market its products.
3. Diversified products across the categories: LG has a
huge product line and length across the product categories both
in white & brown goods.
4. High TOMA: Through its continuous branding efforts, sponsoring
sporting & lifestyle events like ICC cricket world cup, Formula
one championship, soccer matches etc. LG has created high
visibility and thus is successful in its branding efforts.
5. CSR activities: LG has always been involved in community work
so as to involve the people in the co-creation of the wealth.
6. Brand equity – The long term presence of LG in the market,
along with their amazing product strategies, and reliability on
their products has ensured that LG has a strong brand equity,
and hence is able to survive in a tough business environment.
Weaknesses in the SWOT analysis of LG electronics 

1. Management: Due to its extensive presence in the white &

brown goods market they are not able to focus on every single
product category properly due to which they are losing their
market share in several products like T.V, Refrigerator etc.
2. No Cash cows – Samsung has amazing brand equity due to its
smart phones and smart TV’s. Similarly, most brands have a
super hit product which is a cash cow. However, in LG, there is
hardly any product which is a cash cow for them. 

Opportunities in the SWOT analysis of LG electronics

1. Changing lifestyle: Growing urban population, Rise in disposable

income, shift towards technological products & migration from
rural to urban areas are some of the factors that will be the
driving force for the home appliances, electronics goods
2. Competitors helping in the adaptation of the new
technology: Intense competition in the industry is helping LG in
making their products acceptable to the society. So LG can
leverage out benefit of this & can increase their market share by
considering competitors move.
3. Market Expansion: By further penetrating to the emerging
markets will help the company in accelerating its growth rate.
4. Strategic Partnership: Till now LG has been involved in the
collaborative partnership with many companies. It is making
technology advances and identifying business opportunities
through various partnerships relationships with some of the
world’s leading companies. Strategic alliance between
corporations in which companies with different infrastructures
cooperate in the fast-developing. 
Threats in the SWOT analysis of LG electronics 

1. Intense rivalry within the industry: Every company in this

industry is fighting hard to make their presence felt & hold their
market share. Majority of the players in the industry follows red
ocean strategy in order to kill the competition which is affecting
the industry as a whole.
2. Stagnant Urban demand dynamics: Since more & more
companies are venturing out in the over competitive urban
market, there is little growth left in these markets, so over
dependence on these market will be riskier for the company like
LG.
3. Government Regulations: Government policies relating to use
of innovative technology for energy & power conservations is by
& large affecting the industry & forcing them to switch to
renewable sources of energy.
4. Sluggish Economy: Macroeconomic uncertainty, Recession, un-
employment etc. are the economic factors which will daunt the
industry for a long period of time.
5. Rising Raw material cost: Due to rising raw material prices &
labor cost, LG’s margins are shrinking which is making the
business operations less profitable.
Samsung electronics is another top company that manufactures electronics. It
also operates through divisions i.e. Device solutions division, IT and mobile
communications division and consumer electronics division.

Samsung’s Device solution is concerned with the integrated system’s circuit. The
IT and mobile communication ensure that the handheld gadgets e.g. phones and
tablets, digital Cameras and PCs are of the required standard with the Consumer
electronics division providing medical devices, Air conditioners, Refrigerators,
monitors, cable televisions, et cetera. The company was founded in Suwon, South
Korea in the year 1969. Currently, it employs more than 93,000 people and has a
market capitalization of over $254 billion. By mid this year, its sales value was
around $174 billion.

Samsung is clearly the topmost amonst all LG Competitors due to many reasons.
LG and Samsung are big time competitors in products like refrigerators, television
and others. They are also competitors in Smartphones as well as Laptops.
Samsung is in fact an all around LG competitor and hence the toughest
competitor LG has to beat.

Samsung is a South Korean multinational conglomerate headquartered in

Samsung Town, Seoul. It comprises numerous affiliated businesses, most of them
united under the Samsung brand, and is the largest South Korean chaebol.
Samsung was founded by Lee Byung-chul in 1938 as a trading company. 
Customer service: 1800 407 267 864

Founder: Lee Byung-chul

Founded: 1 March 1938, Seoul, South Korea

Headquarters: Seoul, South Korea

Revenue: 21,123.14 crores USD (2017)

Subsidiaries: Samsung Electronics, Samsung Life Insurance,

Samsung’s Mission Statement

Samsung’s mission statement is “We will devote our human resources and
technology to create superior products and services, thereby contributing to a
better global society.”

Samsung’s Vision Statement

Samsung’s corporate vision is to “Inspire the world with our innovative

technologies, products and design that enrich people’s lives and contribute to
social prosperity by creating a new future.”

Samsung frequently refers to a shortened version of this corporate vision: “Vision

2020: Inspire the World, Create the Future.” 

Samsung competitors

1. LG
2. Sony
3. Panasonic.

Marketing mix of Samsung – 4P of Samsung

Samsung has a vast product portfolio and its presence is in several different
product categories. The brand image driver for Samsung are the Samsung
Smartphone’s such as the Samsung note series or the Samsung galaxy series.
Overall, Samsung is present in the following product categories.

Products in the marketing mix of Samsung

1. Tablets
2. Mobile phones – Smart phones, normal phones,
3. Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV etc
4. Cameras and Camcorders
5. Refrigerators
6. Air conditioners
7. Washing machine
8. Microwave ovens
9. IT – Laptops, printers and accessories

The benefit of Samsung in terms of its product is that there is a trust on all
Samsung products because of the way Samsung products have performed in the
last few years. Problems with the products has been negligible.

And with its Smart phones, Samsung has achieved a status symbol for its
customers. At the same time, Samsung is known for its service and people know
that Samsung gives a very fast service for any of its product. Thus in
the marketing mix of Samsung, the product portfolio is one of the strongest point
for Samsung.
Price in the marketing mix of Samsung

Because of its presence in different product categories, Samsung uses

various pricing strategies. We can divide the pricing strategies and match it with
the products that it is used for.

Skimming price – Samsung’s smart phones are one of the best in the market and
are the market leader in terms of the features and USP’s that they provide. The
recent Samsung Note 3 + Gear is another entrant in the market which is catching
peoples eyes. Thus Samsung uses Skimming price for these products wherein it
tries to get a high value in the start before competitors catch up. Once the model
is old or any competitor has launched a similar product, Samsung immediately
drops the price.

Competitive pricing – For products other than smart phones, Samsung

uses competitive pricing. Televisions, air conditioners, refrigerators and other
products have competition in the form of Panasonic or LG. Samsung is known to
be a great brand but it is not greater than LG for home appliances.
In fact LG beats Samsung where home appliances are concerned. Similarly in
Washing machines – Whirlpool, and in Cameras – Cannon, are the brands which
are to be beaten. You can view this article on top Samsung competitors in each
segment. Thus in various categories, Samsung keeps competitive pricing so as to
beat the competitor. Samsung as a brand hardly uses penetrative pricing because
it doesn’t enter late in the market. In fact, it is present in most consumer
durable segments in the market.

Place in the marketing mix of Samsung

Samsung is present through various channels in the market. It works on

the channel marketing concept wherein there are three segments. Sales and
service dealers, Modern retail and Distributors. The sales and service dealers
handle key accounts for Samsung and are involved in corporate sales. These
dealers may also open exclusive Samsung showrooms.

The Modern retail segment includes large retailers like Croma, Hypercity, Vijay
sales, Vivek’s and any others who are present in the modern electronic retail
chain. Samsung being such a branded product, the retailers are bound to keep
Samsung as an alternative or as the primary product for their customers.

The distribution network is the most interesting in the case of Samsung. In several

cities, Samsung has a single distributor through whom they distribute throughout
a territory. For example – In Mumbai, Samsung has SSK distributors who are
distributors for all Samsung products.

This distributor has a huge investment in Samsung and both, the distributor and
the company, go hand in hand for the sale of Samsung’s products. Thus all
material of Samsung will be sold to a single distributor who in turn will sell it
forward to retailers.
Promotions in the marketing mix of Samsung

Samsung uses multiple forms of promotions. Samsung as a company believes in

pulling the customer to themselves through advertising but at the same time uses
strong tactics to push the product to the customer through sales promotions.

Thus on one hand, Samsung uses various marketing vehicles across the year
covering festive season as well as non festive time. On the other hand, it gives
many offers and discounts to its trade partners to motivate them to sell Samsung
above competition. With such a strategy, Samsung’s brand is on the rise so that
both, the pull as well as push strategy is working simultaneously in Samsung.

The marketing mix of Samsung is a lesson to marketers in several points.

First, Business will grow if you have multiple products at once as all of these
products can become revenue drivers for your company. Second, Pull strategy,
though expensive, is far more beneficial in the long time
Financial details of the company
SWOT analysis of Samsung

Strengths in the SWOT analysis of Samsung

 Samsung enjoys the widest range of product portfolio which

includes Mobile phone, Tablet, TV/Audio/Video, Camera,
camcorder, Home appliance, pc, peripherals, printer, memory
cards and other accessories
 Samsung holds significant market share in most of the product
categories
 Samsung is NO.2 in terms of market share in mobiles, it
captured Nokia’s market share by superior innovation in smart
phones
 Samsungs is the best in terms of design features and technology.
It was the first to introduced dual screen mobiles , 65k TFT/LCD
colour phone, first phone with polyphonic ringtones, phones
with rotating lens, thinnest and lightest note pad etc
 Samsung enjoys the first mover advantage in terms of
introducing advance features in LCD, refrigerator, Air
conditioner etc. It introduced the world’s smallest MP3 player
and India’s first 17” TFT-LCD-TV monitor.
 Samsung took advantage of the growing economy of Asian
market by setting up manufacturing plant in India there by
reducing logistics and supply chain costs.
 Samsung brand value increased by 80% in past three years
Weaknesses in the SWOT analysis of Samsung

 Samsung Mobile launched a series of Smart phones recently

which led to cannibalization
 The demand for LCD panels is expected to decline in the future
 Still Nokia is considered to be the most preferred product in
India in terms of ease of use, reliability and resale value
 Chinese products focus on economies of scale and dump into
Indian market for lesser cost. This results in reduction of sales
 Samsung is a hardware leader but has too much of dependence
for software from other parties.
 Online stores which sell a wide range of products are giving
better deals as they don’t incur cost in distribution channel

Opportunities in the SWOT analysis of Samsung

 Samsung is planning to make the air-condition product category

more strong with unique technology called ‘Triple protection
proposition’
 Samsung is the India’s official ‘Olympic partner’ for the 2012
London Olympic and recently launched ‘Olympic Ratna
Program’. This will result enhance brand awareness and increase
the sales
 Samsung Mobile and Home appliance has future plans of
launching Customized products for Indian market. This will
improve the market share in rural market
 The Indian youth population is growing and mobile phone sales
is expected to increase due to lesser call rates
 Its financial position is strong and there is a scope of entering
into unrelated diversification
Threats in the SWOT analysis of Samsung

 Samsung has wide variety of product lines, failure of

one product line will have impact on the other and will result in
brand dilution
 The competitors like Nokia are focussed only in one segment
 Since India is a potential market, entry of foreign players is likely
high. Foreign players like Haier have already started gaining
market share in India in home appliances.
 Threats from Chinese products
 Retail Chains like Bigbazaar sell consumer electronics and home
appliance in low cost strategy which are procured in bulks from
foreign market
Sony Corporations was founded in the year 1946 in Tokyo, Japan to design and
market electronics. Some of its products include; software and game consoles.
Like Samsung and LG, Sony’s modus operandi is through segments, i.e. the
financial services segment; mobile communications segment; network services
and gaming and product imaging and solutions.

Since the 1980s, Sony communicates to its customers through slogans. In the
early 1980s, the slogan was ‘the one and only’ after which it adopted ‘Its Sony’
until the year 2002. From then the slogan changed to ‘like no other’ and in 2009
another one dubbed ‘make belief’ was introduced. ‘Make believe’ was abolished
in 2014 and ‘Be moved’ which is still in use introduced. The company has around
14,000 employees

Sony Corporation is a Japanese multinational conglomerate corporation

headquartered in Kōnan, Minato, Tokyo. Its diversified business includes
consumer and professional electronics, gaming, entertainment and financial
services.

Customer service: 1800 103 7799

CEO: Kenichiro Yoshida (1 Apr 2018–)

Founded: 7 May 1946, Nihonbashi, Tokyo, Japan

Subsidiaries: Sony Mobile, Sony Pictures, So-net.

Founders: Akio Morita, Masaru Ibuka

Sony’s Vision Statement

With regard to its corporate vision, Sony states, “Our vision is to use our passion
for technology, content and services to deliver kando, in ways that only Sony
can.”

Sony’s Mission Statement

Sony’s corporate mission is to be “a company that provides customers with

kando – to move them emotionally – and inspires and fulfills their curiosity.”

Sony competitors

1. LG
2. Samsung
3. Panasonic
4. Marketing mix of Sony – Sony Marketing mix

As we are aware that Sony is one of the most sought after and leading
manufacturers of communication, gaming consoles,
informational technology products, electronics and video for the
professional markets and customer which helped to develop the business into one
of the world’s richest and most likeable companies. Sony group is chiefly focused
on electronics like

 AV/IT products
 Games like PlayStation
 Entertainment like music and motion pictures

Sony is a globally recognized company and has a vast range of business. They
tryto leverage this uniqueness of theirs in full force by carrying out
their convergence strategy aggressively. The primary aim of Sony is to excite and
touch their customers with their unique products. Masaru Ibuka and Akio Morita
founded the company in 1946 and it has its headquarters in Minato, Tokyo, Japan.

When it comesto semiconductor makers, Sony occupies the 20th position

worldwide. By 2008, Sony Corporation had employed around about, 163,000
employees. By 2014 they were one of the top five global brands in the world
earning revenue of more than $8.87 trillion a year. It is because of their top-notch
quality and service that they are counted among the market leaders. They provide
full satisfaction to their beloved customers by surpassing their expectations.

Product in the Marketing mix of Sony

For any company product is a very essential element. The product of the company
defines the brand. By product we not only mean the tangible aspects but also
the intangible aspects. When a customer looks at a product they consider if it’s
safe, if it they satisfy their needs, if the looks of the product is good and if the
product is affordable before making a purchase.

Sony is known for its superior quality and service. They are market leaders in the
entertainment industry and their products are very useful. Products
manufactured by Sony Corporation includes:

 Audio – portable, car and home, along with personalized navigation

systems.
 Televisions –, Projection televisions, LCD televisions, LED televisions
CRT-based televisions.
 Video –, digital cameras, Video cameras DVD/Video recorders and
players.
 Games – PlayStations.
 Semiconductors- CCD, LCD and various other kinds of semiconductors.
 Computers and Information–printers and computers.
 Motion pictures and Television and motion pictures
 Mobile phones
The company has also started with their personalized PlayStation cards and Sony
cards, which are used as reward credit cards. These cards allow the customers to
win redeemable points after they make a purchase for any Sony products or
services. Sony also started manufacturing laptops, which comes in various sizes,
shapes, designs and quality. They sell the laptops in the name Sony Vaio. They
launched it in India on 24th October 2004. These laptops are available in 7 models
such as:

 Vaio FW
 Vaio SR
 Vaio TZ
 Vaio SZ
 Vaio Tokage
 Vaio CR
 Vaio NR
Price in the Marketing mix of Sony

Sony tries to price its product in a very strategic manner. For instance, they try to
have a three-tiered  pricing  strategy, which appeals to the economy buyers, the
middle class buyers and high-end buyers.

Whenever Sony Corporation launches a new product, which has some unique
features they try to go for price skimming strategy. It means that they charge
higher price for their unique product when its launched and it gets decreased
gradually. The whole idea behind this is that this strategy helps in profit
maximization when the product is launched and when the price decreases it
boosts sales volume. For instance, when Sony launched its first high definition
television in 1990 it priced it over $43,000. However, the prices were dropped to
mere $6000 in the year 1993 and the prices were further slashed to $2000 in
2001. Even when Sony sold its Walkman it placed it at a very high price as
compared to its competitors. Regardless, they dominated the market. This was
due to the consistent performance, brilliant sound delivery and highest quality
that the Walkman delivered.

However, Sony was also a low cost producer for many products. This made it
possible for them to have enough resources, which out showed their competitors.
Sony’s pricing strategies is perhaps the best example of a combination
of differentiation and low cost strategies. For their laptop series Sony tried to
price each model according to its style, mobility, purpose, performance and user.

Place in the Marketing mix of Sony

Sony design their marketing plans always based on their distribution channel.

They make sure that their products are available to their customers easily. In a
country like India, where the people prefer buying long lasting products and
products that are durable, channel of distribution plays a vital role.
Their distribution channel consists of the manufacturer, retailer and then the
customers. They mainly practice selective distribution of their products from very
selective dealers such as SONY WORLD.
In India, they have their footprint all over the country. Their distribution network
covers over 7000 channel partners, more than 260 Sony outlets and 21 branch
locations. Here, they use one level distribution channel.Their wholesale
distributors include big names but are not restricted to
Dongsheng International Trade Co. Ltd, Front-Page Trade Co, Ltd, Best wholesale
co. Ltd and Denzuke Network Sdn.Bhd.

Promotions in the Marketing mix of Sony

The key to successfully launching the product and making the target customers

aware of the usefulness of the product is called promotion. Promotion is
something that affects both the company and the product. It helps the company
to increase their profit hugely and also gives knowledge and creates awareness of
the products for the consumers. Sony Corporation seems to be utilizing this very
well.

Their tagline “Make. Believe” passes a message to unite initiatives across network

services, electronics, mobile phones, music and movies. It also symbolizes Sony’s
essence of innovation and creativity. They use lot of celebrities to endorse their
products. In the past, the faces of their products were big actors like Deepika
Padukone and Kareena Kapoor in India. Currently, Katrina Kaif was announced as
a brand ambassador of their smart phone range Xperia.
Financial details of the company
 SWOT analysis of Sony – Sony SWOT analysis

There are many ways of analyzing a business. Perhaps one of the best ways to do
this is by creating a SWOT – that is, Strengths, Weaknesses, Opportunities, and
Threats -- analysis. This sheds light on the good and bad points of a business in
terms of its strengths and weaknesses, which are mostly internal in nature; as
well as opportunities and threats, which are external in nature.
Here is a SWOT analysis of Sony Corporation (NYSE: SNE), which once was the
undisputed leader in the consumer electronics space. Let's take a brief look at the
results for Sony.
Strengths

 Sony has built a brand. This is highlighted by the fact that the company was
tagged in a 2011 survey as Asia's most valued brand.
 The company is synonymous with technological excellence and has a rich
heritage of technological expertise. Besides creating the Trinitron Color
television, VCR, and Walkman, the company helped develop the magnetic
recording tape, the compact disc, and the Blu-Ray disc, used today as a medium
for high-definition video playback. Its latest innovation, a Crystal LED television,
was well received at the Consumer Electronics Show in Las Vegas.
 Out of all its products at present, Sony's success with the Playstation is
most noteworthy -- it has been successful since inception, and still sees
tremendous consumer demand.
 A strong foothold in the entertainment industry with Sony Music and Sony
Pictures has been beneficial to the company by offsetting losses in its
consumer-products division.  

Weaknesses

 The high cost of media production, especially in its television business, has
affected the company's pricing strategy. Its television business has lost an
equivalent of $6.3 billion for eight years in a row. It's also losing market share to
manufacturers, such as LG and Samsung.
 While diversifying into too many business segments, the consumer
electronics giant has shifted its focus from its core competency -- making great
consumer-electronic products. This has resulted in a distortion in Sony's
brand. Apple, which is also in the consumer electronics space, has managed to
focus on just a few products, build competency, and make them incredibly
successful.

Opportunities

 The company can take advantage of its movie and music business along
with its experience in the gaming space to deliver value-added content to
support and integrate its product line. It has talked about doing this with a four-
screen strategy, which looks like a good concept.
 The company lately bought off its entire Sony Ericson joint venture. This
should give Sony the opportunity to act independently and innovate in the
booming smartphone and tablet market.
 The company has the opportunity to enter the healthcare-imaging sector in
a significant way through a possible acquisition of a 30% stake in Olympus.

Threats

 Sony faces price competition from competitors such as Samsung and LG,
who are gaining traction with lower-cost products such as televisions and
mobile devices.
 If rumors are to be believed, Apple can give a tough time to Sony by
introducing its own version of the television, Apple TV. Moreover, Apple is
seeing a significant appreciation in its brand value compared to Sony on a global
basis, according to Interbrand's Rankings.
 Sony's online network faces threats from hackers. The company's
Playstation network was hacked, resulting in leakage of customer information,
such as credit-card data.

The Foolish bottom line

Sony has many positive points to its credit but it seems to have lost its magic
charm in the past few years. If the company uses its innate strengths and
opportunities judiciously, it should have the potential to revive its past glory.
Panasonic is a consumer electronics company that was founded in the year 1918
by Matsushita Konosuke with its headquarters in Osaka, Japan. The company
produces and sells electronics. Some of the divisions through which it operates
include; the Appliances division, The Eco Solutions division, AVC networks, and
automotive industrial systems.

The Appliances division produces white goods e.g.  Refrigerators, vacuum

cleaners, health and beauty products as well as washing machines. Eco Solutions
manufactures lighting fixtures, solar systems, air purifiers, air-conditioning
equipment, LED lights et cetera. AVC networks manufacture crystal clear
display TVs, digital cameras, video equipment, surveillance cameras and
projectors among others. Car related products e.g. batteries are manufactured by
the automotive industrial division.

The company has around 249,520 employees. By May 2017, its Market Cap was
estimated to be $26.2 billion and sales $66.56 billion.

Panasonic Corporation, formerly known as Matsushita Electric Industrial Co., Ltd.,

is a Japanese multinational electronics corporation headquartered in Kadoma,
Osaka, Japan.
Customer service: 1800 108 1333

Headquarters: Kadoma, Osaka, Japan

Founder: Kōnosuke Matsushita

Founded: 13 March 1918, Osaka, Osaka, Japan

CEO: Kazuhiro Tsuga (27 Jun 2012–)

Subsidiaries: Sanyo, JVC, PanaHome Corporation,
Panasonic Mission Statement

A business won't survive without profits. Still, profit is not the sole purpose of
business. Improving people's lives through creating goods needed for society or
through providing wholehearted services are vitally important. After all, business
is ultimately for the betterment of our society. That is where the mission and
value of every business exist. If business underscored by that mission is
conducted forcefully, it will generate appropriate profits as a natural result of
being supported by society.

Panasonic Vision Statement

A top global company by pursuing the management objectives of realizing a

ubiquitous networking society and coexisting with the global environment
through cutting edge technologies.

Panasonic competitors

1. LG

2. Samsung

3. Sony.

Marketing mix of Panasonic – Panasonic Marketing mix

Panasonic is a public limited company that has its headquarters in Kadoma, Japan.
Founded in the year 1918, this multinational Japanese corporation deals in the
industry related to electronics and home appliances. Panasonic serves
the international market and is one of the main electronic goods producers in the
world.  It has been able to create a brand name for itself by associating itself with
the “Go Green” movement. Some of the main business rivals of this worldwide
brand are as follows-

 Canon Inc
 Toshiba
 Hitachi
 Sony
Product in the Marketing mix of Panasonic

Panasonic started its journey with the manufacturing of bicycle lamps marketed
under the National brand. Later it started the production of electrical appliances
and components like electric irons and light fixtures. After the world war,
Panasonic started its dealings in radio and its appliances along with bicycles. In
1961, the company started producing television sets and presently it has the
distinction of being the fourth largest manufacturer of television in the world.

At present, the company sells almost all its services and products under the brand
name Panasonic. Panasonic has a variety of services and products in
its portfolio that relates to home appliances, semi-conductors and electronic
goods. It also has stepped in the product category of non-electronic goods and
various services like the home-renovation services. Some of the product items of
this famous brand name are as follows-

 Refrigerators
 Air conditioners
 Compressors
  Washing machines
 Television
 lighting
 Personal computers
 Mobile Phones
 Camera
 Audio Equipment
 Projectors
 Broadcasting equipment
 Automotive electronics
 In-flight systems of entertainment for aircrafts
 Batteries
 Semi-conductors
 Optical devices
 Electrical –components
 Electrical materials
 Bicycles
 Ventilation appliances like electric fans.

Place in the Marketing mix of Panasonic

Panasonic started its journey in Osaka, Japan but later during the times of World
War II, it started operating various factories in its country Japan and numerous
other countries in Asia. In the year 1961, the brand started the production of
televisions for the market in US and later the company expanded to Europe.
Presently, Panasonic has more than five hundred and eighty subsidiary companies
under its belt with its operations in many parts of the globe.

In India, the brand started its operations in 1972.The founder of the company
revamped the sales procedure and the distribution organization of the company.
In 1965, he set up a sales network after restructuring the sales policies
completely. He initiated a direct division for transactions bypassing the offices of
sales and created a new credit system for sales. The manufacturing units had
autonomous management powers and the provision stores extended. He also
started a five-day week program that led to fresh ideas, management and
improvement in the overall performance as it helped in the smooth running of
the company and laid the base for all its future policies.

The company’s operations are organized with the help of its “Domain Companies”
that are nine in number like the Eco Solutions, AVC Networks, Energy, Automotive
Systems and Appliances. The Panasonic Automotive Systems deal in the
manufacturing of audio equipment. It acts as a subcontractor by supplying to
various auto manufacturers. Panasonic Corporation in Europe operates through a
chain of outlets in Ireland and United Kingdom. These Panasonic Stores sell
products exclusively belonging to the brand.

The company also established a new company called Panasonic Electrical

Works in Serbia, for the manufacturing of electronic devices. At present Panasonic
Products are available in its outlets as well as in shopping malls and other outlets
with which the company has tie-ups. Purchase is also possible through online
shopping sites in fact the internet has become a major selling outlet for the
brand.

Price in the Marketing mix of Panasonic

Panasonic is an international brand that believes in qualitative products to cater

to the global audience. It pricing policies have always been very simple. The
company produced its goods for the average household so it kept its prices
reasonable. The company makes sure that the products are available to every
section of the society because of its affordable pricing policies. Thus, the brand
has gone for a fair Price Policy where the prices are appropriate rather than
immovable. In order to penetrate as much market as possible the company has
tried various cost-cutting strategies.

The brand has kept a minimum profit margin that has encouraged higher sales
figures and maximum revenues for the company. Various discounts at special
occasions have also helped in lowering the product prices and increasing the
revenues while creating a new consumer base. 

Promotions in the Marketing mix of Panasonic

Panasonic believes in large-scale campaigns to promote its brand and the various
services and products. It has stepped up its advertising promos to increase
the brand visibility in the consumer eyes. The brand has appointed famous
Brazilian footballer “Neymar Jr” as its brand ambassador. The company has been
a participant of “Greener Electronics” movement dedicated on manufacturing
eco-friendly products. Its present slogan is “A Better Life, A Better World”.

Panasonic has decided on numerous sponsorship deals to maintain its visibility in

the international market. The brand has been a sponsor for “Marco Reus”, the
German footballer, who plays for “Borussia Dortmund club”. The company is also
the owner of a “J.League”, a Japanese football club called “Gamba
Osaka”. Panasonic is the sponsor and official partner of “Major League
Soccer”and “AFC ChampionsLeague”. The brand has also acted from 1981 – 1983
as the shirt sponsoring company for “Nottingham Forest F.C”, which is an English
club for football. In the year 2010, January, Panasonic brand signed a deal for
three years as jersey sponsors for the “Indian National Team of Football”.
The company also sponsors “Toyota’s Formula One”. In the year 2007, the brand
cracked a deal with “Hendrick Motorsports” and became its technology partner. It
has also agreed to act as sponsor for the no24 car along with “Jeff Gordo” for two
of its races in 2014 and through the year 2016. Since the year 1988 “Seoul
Olympics”, the brand has acted as one of the sponsors for the “Olympic Games”.
Besides sports, Panasonic has also encouraged professional filmmakers by lending
them the use of camera for their various projects. “Marianne”, the Swedish
horror film, was shot with “Panasonic Lumix DMC-GH1” camera.

Financial details of the company

SWOT Analysis of Panasonic

Strengths

Here are some of the most important strengths that Panasonic boasts:
Solid market position and brand: Panasonic may not be Apple or Microsoft, but
they still have a very fair share of the consumer electronics market. Panasonic is
well known for their various cameras, and have a reputation for their fantastic
Japanese innovation and quality.
High quality products: Panasonic’s goal isn’t to shift millions of cheap, low-quality
products. Instead, Panasonic produces long-lasting electronics of high standards
— certainly a big strength.
Large variety of products: Although it’s hard to pinpoint the exact number of
products that Panasonic manufactures, it’s well over 10,000. A big selection of
products puts them in a strong position for various different market environments
and strategies.
Weaknesses

Like every big company, it’s hard to operate without a few flaws. These are some
of their weaknesses:
Expensive products: Price and quality go hand-in-hand in a lot of companies, and
Panasonic is no exception. Unfortunately, Panasonic’s high prices are easy to
compete with (discussed further within ‘Threats’).
Inefficient management: Despite the fact that Panasonic was founded by
Konosuke Matsushita, supposedly the ‘god of management’, this corporation is
said to have internal management problems [2]. This could be as a result of their
perhaps overly-diverse product line.
Opportunities

Technology companies are normally similar when it comes to their opportunities.

Panasonic has a few different opportunities stemming out from their high quality,
good brand and diversity:
Emerging markets: In addition to providing almost ‘luxury’ consumer electronics,
Panasonic also produces household appliances which have a much more global
demand. As a result, there is demand for Panasonic products even in poorer
regions. In general, this multinational has plenty of opportunity to expand into
markets in Latin America, India and perhaps one day Africa.
New products: Like most tech companies, if Panasonic can catch the next ‘big
thing’ in electronics, there is a lot to be gained. Panasonic’s healthy wealth, large
working force (over 250,000 workers) and innovation might help them to act on
their next big opportunities.

Threats

Acting in such a competitive market, it’s clear the Panasonic is bound to have
some threats. In their simplest form, these are:
Heavy competition: Sony, LG, Samsung, Philips and Toshiba all compete directly
with many of the products that Panasonic produces. Each of them has their own
strengths — lower prices, better quality, and even better customer support. If
Panasonic can’t keep up with innovation, they will be pushed aside by other huge
multinational tech companies.
Volatile market: The technology market changes every week, if not every day.
Who knows if the majority of Panasonic’s products will even be relevant in 10
years time?
In conclusion, while Panasonic has a reputation for their innovation skills,
premium quality and eclectic product line, they are competing in one of the
world’s toughest markets. Panasonic definitely has some opportunity in supplying
their household appliances to various emerging markets across the globe, but
they still have to be careful that they don’t get washed away in the technology
sector’s volatile markets.