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  (Source: bestasiatravel.asia)
Panasonic will likely survive because it focuses on more than just consumer electronics

A credit rating agency said that Panasonic would likely survive longer than Sony after downgrading both electronics companies.

Credit rating agency Fitch recently lowered Panasonic's rating down two notches to BB, but cut Sony down three notches to BB minus. Other credit rating agencies have put them at the same level.

The reason for Fitch's credit ratings? It claims Panasonic has a "relatively stable consumer appliance business," such as refrigerators and washing machines, aside from just consumer electronics. Sony, on the other hand, is mainly depending on the extremely competitive consumer electronics market.

Right now, tech giants like Apple and Samsung have a strong hold on the electronics market, such as smartphones and tablets.

Sony's troubles largely stem from its failing TV business. It has seen eight straight years of quarterly losses, and last December, Sony decided to shake up its TV division by negotiating a buyout of its 50 percent manufacturing stake with Samsung in the LCD joint venture. It also split its TV division into three units consisting of sales of LCD TVs, outsourcing manufacturing to cheaper foreign facilities and developing future TVs.

To make matters worse, Sony reported a record annual loss of $5.7 billion USD in May 2012.

However, new Sony CEO Kazuo Hirai has been working to turn the company around since he took over in April 2012. In fact, he offered an entirely new plan for restructuring the company. A key idea behind the restructuring was to strengthen core businesses, including digital imaging, games and mobile. He also opted to take over the failing TV business, expand business in emerging markets, create new businesses and realign the business portfolio.

Just last month, Sony closed a factory in Japan and cut 2,000 jobs at its Tokyo headquarters.

While Hirai is trying to make Sony profitable again, Fitch said "most of their electronic business are loss making" and "appear to be overstretched."

Fitch said Panasonic, on the other hand, is focusing on areas other than consumer electronics like home appliances, lithium batteries, solar panels and automotive parts.

Source: Reuters



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RE: my analysis
By TakinYourPoints on 11/24/2012 9:44:24 PM , Rating: -1
Sony needs to focus their products, that's the real issue. They are all over the place, not doing a particularly good job at much and failing as a result. Even the first gen PS3 is emblematic of that, a TON of ports and slots and functions (SACD?) that most people won't have any use for. Focus on what is important and people will follow. And I say this as someone that likes the PS3...

Apple succeeds because they focus on only making the best and most straightforward smartphones and tablets. Something like the iPhone 5 has the fastest performance, among the best displays, the best battery life in its size class (twice as much LTE browsing time as a Galaxy S3), combined with the best app market. Apple products make a lot of sense in their price rance. Something like the XPeria is a Frankenstein device that doesn't do anything particularly well.

Sony needs to get out of their "throw everything at the wall and see what sticks" and work on focusing their business and products. The SonyStyle stores, again, are all over the place, and they don't even offer the best products of what they're selling. Its all a bunch of mediocre things. In the 90s and early 2000s they had among the best CRTs out there with the WEGA. Now there is no reason to recommend any Sony display over a Panasonic plasma (probably the best displays out there with Pioneer out of the picture).


RE: my analysis
By Nortel on 11/24/2012 10:01:15 PM , Rating: 4
One of the problems is in Sony making everything from clock radios, headphones, receivers, speakers, game consoles, tv's, cameras, lenses, computers, tablets, cd players, phones, etc... to actual motion pictures. They try to make everything and seem to do 90% of them poorly.

The real problem imho is in their ability to bring a product to market. I doubt there is a slower concept to market cycle company out there than Sony.


RE: my analysis
By StevoLincolnite on 11/24/2012 10:18:49 PM , Rating: 2
Samsung is just as bad though and they are far from faltering last I saw however.

They make Televisions, Refrigerators, Microwaves, Washing Machines, Dryers, Phones, Computers... Heck they even handle Medical Supplies and build oil refinery's and will handle your insurance.

Talk about diverse! Unlike Apple though, if one segment (Say Phones/Tablets) falters, then they aren't going to be going down the plug hole.


RE: my analysis
By daar on 11/25/2012 10:55:01 AM , Rating: 5
Samsung is far from faltering because even their appliances are considered among the best in terms of what's available to your average consumer


RE: my analysis
By StevoLincolnite on 11/25/2012 6:36:18 PM , Rating: 2
quote:
Samsung is far from faltering because even their appliances are considered among the best in terms of what's available to your average consumer


That's the image they have obtained for themselves (And with good reason) but there are exceptions, not everything Samsung makes is flawless.

For example Samsung were caught using incredibly cheap capacitors in it's Televisions, mostly as a cost cutting measure, but this also means that those Televisions are more prone to failure.

Need to set realistic expectations I suppose, everything man made after-all is going to fail.


RE: my analysis
By TakinYourPoints on 11/26/2012 4:12:04 AM , Rating: 4
You beat me to it, Samsung has horrible failure rates with their TVs. Aside from that, their picture quality isn't there either, Panasonic's plasmas blows theirs away. LCD HDTVs are inferior to plasma across the board so those aren't even worth discussing.


RE: my analysis
By FITCamaro on 11/26/2012 7:27:22 AM , Rating: 2
Never seen a Samsung plasma but I am quite happy with my Panasonic one. Picture quality is excellent. I don't care that it uses about 3x as much electricity. I don't notice a difference of $2-3 a month on my bill.


RE: my analysis
By mcnabney on 11/26/2012 10:23:13 AM , Rating: 1
Am I the only one laughing at you two shouting the praise of plasma TV while talking down to Sony?

Plasma displays have less than 1% of the the market now. Their sales are measured in the tens of thousand while LCD displays(LED or otherwise) are measured in the hundreds of millions.


RE: my analysis
By degobah77 on 11/28/2012 1:45:51 PM , Rating: 2
The very best PQ, color accuracy, combined with black levels and viewing angle is going to be found on a Plasma , not an LCD, unless you want to fork over 7 grand for a Sharp Elite series LED LCD, but even that has problems with color accuracy. In fact, the very best TV right now is still the Pioneer series plasmas that they don't even make anymore.

So who cares if they only take 1% of the market, they're still the best and anyone who knows anything about it will agree.

Most average people buy cheap LCDs, because that's what they are, cheap.


RE: my analysis
By degobah77 on 11/28/2012 1:51:10 PM , Rating: 2
CNET still has the BEST HDTV you can buy right now as a Panasonic Plasma VT50, 2nd best is the $5-7k Sharp Elite LCDs.

Plasmas are the true videophile TV, but they are expensive and require special care, so it's no wonder millions of people still buy the crap LCDs.


RE: my analysis
By Cheesew1z69 on 11/28/2012 4:04:00 PM , Rating: 2
Who cares if it's the best, if you can't BUY it, kind of pointless eh? Yes, it is.


RE: my analysis
By degobah77 on 11/29/2012 10:22:09 AM , Rating: 2
It pisses me off the proven excellent technology, that's steadily been getting better each year, is going off the market because the masses are fucking stupid, that's all.


RE: my analysis
By Keeir on 11/29/2012 6:29:23 PM , Rating: 2
I am confused.

Isn't the whole point of this article (and comment thread) that businesses, Sony and Panasonic, are failing?

Panasonic may make a better Plasma than Samsung, but if Panasonic wants to stay in the TV games, they need to focus on being the best/best value at LCD TVs. That's where the Sales are, thats where the profits can be made.

quote:
In fact, the very best TV right now is still the Pioneer series plasmas that they don't even make anymore.


What good does that do any business then?


RE: my analysis
By degobah77 on 11/30/2012 9:50:38 AM , Rating: 1
Agreed, and because of that, I will probably have to make my own fucking plasma TV since we all have to rely on the purchasing decisions of millions of idiots. Sucks that businesses have to focus on inferior tech to survive just because Walmart can sell a POS 50" LCD for $478.


RE: my analysis
By GatoRat on 11/26/2012 12:48:26 PM , Rating: 2
The claim that plasma is better than LCD is odd since my real-world experience has been the opposite.

My Samsung LCD HD has been fantastic and flawless. I wish I could say the same for my SONY blu-ray player.


RE: my analysis
By Cheesew1z69 on 11/28/2012 4:06:24 PM , Rating: 2
Look who you are replying to, his experience apparently trumps everyone else and his opinions are the only one that matters...to him.


RE: my analysis
By BZDTemp on 11/25/12, Rating: 0
RE: my analysis
By TakinYourPoints on 11/26/2012 4:09:41 AM , Rating: 1
Wow, post truth that is reiterated by others, fanboys downvote post from 3 to -1. Some people be mad...


RE: my analysis
By JPForums on 11/26/2012 3:22:40 PM , Rating: 2
It's because you mentioned Apple. Forget the fact that your points were valid and your example a good representation of your points. You mentioned Apple. Shame on you.

On a more serious note: I agree with you that Sony needs more focus. They need to cut what isn't working and reallocate resources to what they can make work. They don't need to be as focused as Apple. After all, being too focused makes you vulnerable to market failure. However, spreading too thin saddles your successful ventures to the failure of your loss leaders as you try to prop them up.

As far as displays are concerned, Sony needs something new. They've already ruined their perceived superiority in the eyes of consumers. They need to make something that isn't currently on the mass market: Super high res displays, refresh rates that leave others in the dust, imperceivable input lag, or even bringing new display tech to mass market (I'd love to see OLED based TVs and monitors available in mass). Then they need to market the crap out of the superior features to restore their name as an innovator. They'll never get ahead while playing follow the leader.


RE: my analysis
By FITCamaro on 11/26/2012 7:25:32 AM , Rating: 2
One of the best features of the original PS3s was all those ports and slots. Because they designed the console to be more than just a gaming machine.

Sadly they took away a lot of that functionality. From PS2 backwards compatibility to Linux support. Sure there were a lot of people not using it, but for those who bought the machine for that reason, it is ridiculous to remove it.


RE: my analysis
By JPForums on 11/26/2012 3:48:18 PM , Rating: 2
I suppose there weren't enough of us to justify the extra cost. They had to remove the "Emotion Chip" to get costs down. Though, I can't really tell how much it saved them given the much smaller process nodes available. So no PS2 backwards compatibility. Too bad they didn't manufacture both and let us decide whether we wanted to put out the extra cash for compatibility. It wouldn't have cost them much as it was already designed. I digress.

As far as linux support goes they had to ..., wait ... , why did they have to cut linux support? Was it something about piracy? I seriously doubt developers would have left their platform over the issue so I don't see what Sony had to loose. Ah, my rage builds again.


"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation














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