Competitor Analysis of Panasonic’s Plasma TV
The competition in the market of Plasma televisions (TVs) has been as dynamic as ever. Current Analysis data demonstrates that the number of High Definition Television (HDTV) models in the retail plasma market alone has grown by over 65 percent since 2003 (from 33 to 55 distinct product lines), while the total plasma market has nearly doubled (O’ Connor, 2005). This primarily causes plasma TV manufacturers to seek out more innovative strategies to withstand the stiff competition in the HDTV market.
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Among the plasma TV manufacturers competing in the market include Sony, Samsung, Philips and Panasonic. This paper looks into some dynamics of the competition in plasma TV manufacturing among the three competitors: Sony, Samsung, and Philips vis-à-vis Panasonic.
Sony is well known for creating high quality products, including television (Plasma TV reviews, 2006). It has done it again with its latest model of plasma TV that offers image quality that surpasses many competitors in the market plus a whole lot of extra features which include input connectors that allow for many people to view something simultaneously (Plasma TV Reviews, 2006). However, there has not been much noise and hype created by and for the plasma TV models from Sony compared to its competitors (Panasonic News and Reviews, 2007).
Another competitor is Samsung. Samsung started producing plasma TV models in 1999, and has since then been the top dealer of basic plasma display boards in the world (Panasonic News and Reviews, 2007). Samsung has still to get where Panasonic is now in terms of picture quality but it has the biggest plasma screen model as well as the highest level of high-definition TV performance. It also has received an Innovation Award for its new high-definition model.
Although a newcomer in the Plasma TV market, Europe-based Philips has presented a flawlessly stylish plasma TV model (Panasonic News and Reviews, 2007). Certainly, it has gotten itself a captive market among those where aesthetics matter but its price tag is slightly above its competitors (Panasonic News and Reviews, 2007).
Panasonic has always been considered one of the top leaders in the field of plasma display technology (Practical Home Theater Guide, 2007). According to Current Analysis, Panasonic reemerged as the market leader in June with a commanding 22.7% shelf share in the U.S. retail marketplace after falling behind Sony in retail plasma TV product placements in May 2005 (Current Analysis, 2005). One of the most important goals of Panasonic is to provide the best quality for the best price (Panasonic News and Reviews, 2007). Thus it has developed a new line that comes fairly cheaper than its previous models of plasma TV. Also, while other brands fail in terms of image quality, Panasonic plasma TVs can display true-to-life picture that one can enjoy for hours without suffering of eyestrain or headache (Practical-Home-Theater-Guide, 2007). In addition, Panasonic offers support services including standard warranties, extended service contracts, and installation services. Read about HP competitive advantage
But the more vital basis for Panasonic’s Plasma TV maintaining its being the best choice among buyers is its aggressive pricing policy to deliver high quality products at an extremely competitive price tag (Practical-Home-Theater-Guide, 2007). Panasonic has clearly taken into consideration the market assumption that “lowering the cost of production and components in this environment of increased competition will play an increasingly vital role in maximizing manufacturer retail presence and market share” (O’ Connor, 2005).
On another front, the high definition plasma market also faces competition from other technologies such as liquid crystal displays (LCDs) and microdisplays. Of all the technologies, however, the most significant threat is that of LCDs (O’ Connor, 2005). Though plasmas still exhibit the price advantage as yet against LCDs, plasma manufacturers still need to bring in more value-adding to prepare itself with the volume production of LCDs that is viewed to lower down its price.
Panasonic will have to ensure sustainability of its strong market edge on the following grounds: 1) its strong reputation in the plasma space and 2) its solid image quality while adding more perks to its next-generation plasmas. The future of the high-end plasma market, however, will be defined by whether the next generation of plasmas can raise value through added functionality (O’ Connor, 2005). If Panasonic can deftly optimize this, its plasma TV can aptly enjoy being a cut above the rest of the cheaper digital TV options on the market.
List of References
Consumer Search. “V. Inc. Vizio VM60P Review, Plasma TV.” Reviewing the Reviews. Modified Sep 2007. Retrieved Sep 2007. <http://www.consumersearch.com/www/electronics/plasma-tv/v-inc-vizio-vm60p.html>.
Current Analysis. “Panasonic Regains First Place in Plasma TV Product Placements; Sony and Samsung Battle for No. 2 Position. Created July 2005. Retrieved September 2007. <http://www.currentanalysis.com/files/plasmaPressRelease_07082005.71145333.42.pdf>.
Current Analysis. “Samsung Ships 42-inch Enhanced-Definition Plasma TV.” Competitive Response Newsletter /Computing & Digital Home. Modified April 2006. Retrieved Sep 2007. <http://www.currentanalysis.com/r/2006/ComputersDgHm-US-04-1.htm >.
Justine O’Connor. “Panasonic steps up plasma play.” Under the Hood. Created Feb 21, 2005. Retrieved Sep 2007. <http://www.techonline.com/product/underthehood/193101274>.
Market Research. “U.S. Plasma TV Service and Support 2004 Vendor Analysis: Warranties, Service Contracts, and Installation services.” IDC. July 2004. Modified Sep 2007. Retrieved Sep 2007. <http://www.marketresearch.com/map/prod/1021712.html>.
Panasonic News and Reviews. “What is the Highest Rated Plasma TV?” Panasonic. Apr 2007. Retrieved Oct 2007. <http://panasonic.plentypage.com/2007/04/18/waht-is-the-highest-rated-plasma-tv/.>
Plasma TV Reviews. “Plasma TV Reviews UK: Compare HD Plasma Televisions.” Plasma TV-HDTV-Guide. May 2005. Retrieved Oct 2007. <http://www.plasmatvreviews.org.uk/2006/05/.>
Practical-Home-Theater-Guide. “Panasonic Plasma Television Lineup of ‘Consumer Plasmas’ for 2006.” Modified Sep 2006. Retrieved Sep 2007. <http://www.practical-home-theater-guide.com/panasonic-plasma-television-1.html >.
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