Japan-based Panasonic has spent the last few years restructuring its business in an effort to boost profits, and had set a target of more than $1.6 billion in revenue, a goal the company recently acknowledged as unconvincing to many analysts.
But Panasonic emerged Thursday (March 26) having completed that restructuring path and, according to the company’s Chief Executive Kazuhiro Tsuga, the firm is well on its way to achieving that revenue goal for the year ending in March 2019. Part of Panasonic’s recent success, Tsuga said, is the company’s refocusing on B2B efforts.
As Panasonic quietly shifted its business strategies, the corporation turned away from the B2C consumer electronics sector in favor of the B2C market, one reports said is less competitively cutthroat than the consumer side. With a decision to stop selling smartphones and while Panasonic does make high-end televisions, the business is also beginning other B2B ventures.
The conglomerate is now a battery supplier for Tesla Motors’ Model S vehicle and has since constructed a major battery manufacturing factory in the U.S. Reports said Panasonic would also be working towards developing products and solutions for in-car entertainment systems and Internet-connected cockpits.
Looking ahead, Tsuga said Panasonic would focus on B2B mergers and acquisitions as it looks to achieve its revenue targets. While Panasonic may have chosen the B2B market for its less volatile environment, experts warn that because of the lack of competition, Panasonic may not be as profitable as it would like.
Plus, Tsuga noted that the company was not entirely ditching consumer electronics, as its appliances business remains a major aspect of its structure. Panasonic will reportedly look to expand its appliances market across the Philippines, Indonesia and Vietnam, and plans to sell high-end consumer products in China.