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Substitute products or services the threat of substitute products is high when there are many
alternatives to a product or service and low when there are few alternatives from which to
choose. Ideally, Panasonic would like to be in a market in which there are few substitutes.
However, in the electronics market, products can be easily duplicated by competitors. For
companies who are first to market, the competitive lead is often short lived. Competitors
duplicate products and many will be offered with more features and at a lower price.
Customers bargaining power buyer power is high when buyers have many choices of whom to
buy from and low when their choices are few. To reduce buyer power (and create a competitive
advantage), Panasonic must make it more attractive for customers to buy from them than from
their competition. Consumers expect the price of new technology to decrease over time, and they
would not accept price increases. In todays global economy, customers quickly search the
Internet to locate competing product offerings and pricing structures.
Suppliers bargaining power supplier power is high when buyers have few choices of whom to
buy from and low when their choices are many. Supplier power is the converse of buyer power.
Panasonic is a very large manufacturer of electronic products and they compete on a global
scale. By streamlining their database they would be in a better position to bargain with their
suppliers who would also benefit through quality supply chain management techniques.
Threat of new entrants is high when it is easy for new competitors to enter a market and low
when there are significant entry barriers to entering a market. Panasonic is a leading electronics
manufacturer however; it must offer customers an array of electronic products that are quicker
to the market than those of the competition. This strategy will enable them to create significant
entry barriers to competition.
Positioning and rivalry among existing competitors is high when competition is fierce in a
market and low when competition is more complacent. Panasonic must be able to get their
products to market quicker and cheaper than their competitors in order to gain any measure of
first-mover advantage. Margins tend to be low in this industry and the consolidation of global
data is one way of making that will allow them to keep their costs down and the efficiencies high.
By following this strategy they will be able to process faster, cheaper, and more accurate that
their competition. This equates to lower prices for customers and increased rivalry among
existing competitors.
Value Chain Model: In using this model it is important to keep in mind that a customer is only
willing to spend a certain amount for a product. When organizations add value-created activities
they must ensure that they will not result in increasing costs as customers will not be willing to
absorb them. The result is a decline in sales and customers looking to the competitors for more
favorable results. The value chain of Panasonic is very high. This company is extremely
dependent upon technology to provide topnotch products to their customers. They are also
heavily dependent upon technology in order to maintain their competitive advantage. The
electronics industry is such the raising of prices is not an option. They must seek alternative
ways to keep their costs down and in their pricing strategy in line with competitors. They also
had to introduce products into the market place fastest than their competitors. Primary Business
Processes: Each state of this generic chain accumulates costs and adds value to the product. The
net result is the total margin of the chain, which is the difference between the total value added
and the total costs incurred.
Inbound logistics consolidated data from all operations allowed for a more detailed picture of
the operations. Could be used in areas such as automated just-in-time warehousing.
Operations better able to manufacture products to target the electronic consumer with
features and prices that they are willing to pay for.
Outbound logistics consolidation of data could assist in more efficient order processing.
Marketing and sales Push model ofdata dissemination where a centralized data bank sends
the information to all employees who need it at the same time, ensuring uniformity. Employees
receive data on a targeted basis.
Customer service retail partners and e-commerce vendors receive product information at all
stages of a product rollout. More consistent product rollouts and product information.
Customers do not become confused while researching their purchases, and helps keep them
from move to a competitor. Support Processes:
Complexity of task.
Convince
Convince corporate office in Japan that their data management strategy deserved global
adoption.
Organization:
Implement a multi-step process that includes business process analysis, data assessment,
data cleansing, data consolidation and reconciliation, data migration, and development of a
master data service layer.
Implement strict policies against computing activities that could
Most partners were based in Asia and were content with their manual process for managing
data.
Prove effectiveness of MDM to manufacturing partners.