Matsushita's Turnaround

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Case Details:

Case Code : BSTA121
Case Length : 18 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : Japan
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Matsushita's founder Konosuke Matsushita was born in Wakayama, Japan, in 1884, in an agricultural family. He took $50 in 1918 and founded the 'Matsushita Electric Housewares Manufacturing Works' and went into business making electric plugs...

Global Expansion

After establishing itself in Japan, Matsushita decided to expand overseas. It established a sales company, 'Matsushita Electric Corporation of America', in 1959. In America, Matsushita's products were marketed under the brand name "Panasonic"as "National"had already been registered there. "Panasonic"became the flagship brand of the company...


In 1998, Matsushita started a four-year program called "the Progress 2000 Plan", aimed at strengthening the company's competitive position in the fast changing digital world. Matsushita modified its management structure to give a greater thrust to new businesses such as optical discs, mobile communications, display devices and semiconductors...

Corporate Purpose

Matsushita's corporate philosophy had been strongly influenced by the founder's personality. In 1932, while visiting the main temple of the Tenrikyo religious sect, Konosuke was greatly impressed by the group's contented people who seemed to be working hard, even though they did not have any monetary incentives...

Research & Development

Matsushita's global R&D policies had evolved over time. In 1976, Matsushita set up its first overseas lab in the US. By 1997, it had 13 major labs and other minor labs in foreign countries, employing about 300 people...

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