SANYO

CASE
STUDY
Submitted by,

Group-8
Sanketh
Keerthana P
Shshank
SANYO is Japanese Electronics Company was found by Toshio Lue, who happened to be an
employee at Matsushita and took advantage of an unused land, which was lent, to him in
1940s that led to him making bicycle generator lamps, which later went on to become a huge
manufacturer for household appliances and batteries with an ambition of being able to sell all
their products across Indian, Pacific and Atlantic oceans.
1970s- Research on Alternate energy sources
1990s- Vigorous competition and issues regarding maintenance of profitability
2004- This year was a major drawback for Sanyo due to the earthquake that destroyed its
Semiconductor plant and was a reason for Sanyos loss.
The year 2005 their major step was to appoint Tomoyo Nonoka as the CEO in order to give the
company a new direction towards Growth and gave them a corporate vision
VISION- Think GAIA to develop environment friendly products and Structural strategies.
This vision was an inspiration incorporated to have a proper balance between the technology
and environment.
Sanyo Blue Planet program-Creates new products by using its water treatment and CO2
technologies in order to deal with environmental problems.
Sanyo Genesis lll program-Refinement of Photovoltaic power generation technology leading to
new products based on global energy and next-generation commuter solutions.
Sanyo product circulation program-Achieve zero-emission, total recycling and non-toxic
product lifecycle.
Their main Objective was to make sure that 50% of their product portfolio consisted of
environment-friendly products and revive Sanyo financially
Sanyo showed development towards combining environment with technology in order to come
up with products like Solar cells, systems for Hybrid electrical vehicles, rechargeable batteries
and recycling systems, products like these helped the differentiate themselves from their
competitors which tends to be their competitive advantage.

SWOT analysis for SANYO

Strength

Latest technology.
Skilled and efficient R&D workers.
Large investment on production to cut costs.
Large number of customers all over the world.
Good reputations among customers.

Weakness

Dependent on market world.

Cut throat competition lead to invest more on advertisement, which in turn leads to
rise in the price of the product.
Lack of patent protection.
Lack of access to key distribution channel.

Opportunities

Greater scope of digital technologies in nearby future.

Meet demand by setting up new plan.
Expanding market in other countries.
Unfilled customer need.

Threats

During recession company suffers a lot.

Large number of competitors in the world market.
Emergence of substitute product.

Sanyos STRATEGY
Corporate Strategy
Sanyo focused on sales and market share rather than companys profitability
Sanyo commoditized its products with the fall in price of products even if there was a rise
in production cost
Dna evolution plan-Objective was to change and reorganize companys corporate culture,
structure and the management process.

Business Strategy
One main business strategy was to appoint Tomoyo Nonaka who has the ability to lead
people, has her facts right about where Sanyo stand, its weak points, very well learnt
about the government policies and would give the company a new perspective.
Organizational reforms were initiated, one of them being The Third Beginning where
5 business groups were reorganized in order to form 8 business groups.
Think GAIA vision-establish themselves as a leader in supplying environment friendly
products.
Financial evolution plan-Sanyo wanted to change itself from being sales oriented to
increase its profitability and to reduce its overdue debts.

RECOMMENDATIONS
The decision of increasing market share wasnt in synchronization with companys competitive
strength as Sanyo is an innovation driven company that made major breakthroughs in
electronics.
Modification of products and rebranding
Redesigning corporate strategy.