Today, we are bringing you news concerning the long term future of the Panasonic TV division to provide Plasma televisions in a highly competitive market. It would appear that from March 2014 Panasonic will exit from the market, due to taking heavy financial losses. In the last financial year alone Panasonic posted $913 million in losses solely from its TV division.
There are several contributing factors leading to the eventual demise of the Japanese company to provide televisions in the global market. The primary factor being that the President Kazuhiro Tsuga’s, wishes to end company losses by cutting off weak operations in the business model and focusing his attention on products that are making money.
Secondly, with the rise of the South Korean company Samsung, Panasonic has lost its competitive edge in the market with customers preferring the new liquid crystal display system (LCD). The South Korean company (Samsung) has at its disposal massive resources that comparatively dwarf Panasonic in terms of both research and development, in an already saturated market.
Panasonic with the combined weight of Sharp Corp and Sony Corp has less than 20 percent of the worldwide market regarding flat panel TV’s. In comparison to its electronic competitors Samsung who have 27.7 percent and LG Electronics who have 15 percent of the market respectively.
The move away from building and selling Plasma TV’s seems to emanate purely for economic reasons as Panasonic attempts to restructure its company in a different and profitable direction. This move has coincided with Panasonic selling its healthcare business and the lowering rate of shares in the company as a whole.
So what do you think about this recent development concerning Panasonic exiting from the Plasma TV market? Are you saddened by the company’s demise in being able to provide this product? Or do you the consumer prefer the more innovative products being produced by Panasonic’s competitors? Thanks to Reuters.