HBR 1 What Panasonic learned in China 1

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Introduction to
International Business
Harvard Business review reflection “What Panasonic learned in China”

Tutor: Sanne Ponsioen
Date of submission: 16th of September
Group number: 6
reviewed article: “What Panasonic learned in China” By: Wakayama, Toshiro; Shintaku, Junjiro; Amano, Tomofumi. Harvard Business Review. Dec2012, Vol. 90 Issue 12, p109-113. 5p. 1 Color Photograph

2716194 Aardema, F.
2543699 Ammerlaan, L.E.
2706180 Urban, J.

The authors T. Wakayama, J. Shintaku and T. Aamano, professors of Japanese universities, of the Havard Business Review article “What Panasonic learned in China” published in December 2012 aim at encouraging multinational companies to take the risk of acting internationally in upcoming markets and becoming a real part of them by giving the example of Panasonic’s joint venture.

In the introduction of their article they explain that in many cases multinational companies do operate in global markets, but often they are not really part of them, what results in their incapability to expand their products to consumers around the world. At that point, the case example of Panasonic is been introduced. Realizing a growth slow in China, the Japanese company Panasonic used this emerging market in order to benefit of cheap labour and low manufacturing costs. Despite the previous amity between the countries, Panasonic wanted to concentrate more on the Chinese customers. After establishing the first joint venture in 1987, more than 40 China-based manufacturing operations were established and China evolved into Panasonic’s manufacturing hub. However, Chinese customers weren’t recognized as an important market yet. Only when the middle class began to aspire, the defect in the strategy became evident. Suddenly, Panasonic’s existence in all markets and countries depended on the performance in China. Using effectively the Japan-based central resources like marketing and R&D expertise, recognizing and remodelling,...
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