Monopolistic Competition

Monopolistic Competition: Panasonic competitive with other brand

What business are Panasonic in? How much of revenue are Panasonic generating from his category? What is their market share? What are their competitive?

Panasonic is known as monopolistic competition, which mean they are an independent industry. They have over 4000 state and local customer across the country which means they have large number of sellers and buyers. Panasonic own over 65% of the Public Safety Market. Besides, Panasonic have the lowest failure rates for mobile laptops in the industry and they do not sell direct. Their product sold is differentiated and has many close substitutes and the product has many close substitutes. The price value is controlled by someone, which means they are price maker. Their brand has differentiated products such as name, function, and packaging, that always competitive with other brand. Thus, this can make their demand curve is flat as it is fairly elastic, if their products are close but not perfect substitutes.

There are 5 leading competitors compare the brand and price with Panasonic. The chosen product is camera and its 5 major competitors are Sony, Samsung, Canon, Nikon, and Olympus. This will make the brands more elastic since there are too many brands with different price to give customer choose. An elastic response due to price change is because there are a lot close substitutes supplied by other brands in the industry.

Digital Camera global market share in year 2010

In my opinion Panasonic must make an informative advertising. Thus, they can provide consumers

with information on the product or service, as well as build awareness and initial demand of their product. Unknowingly, Panasonic can largest their firms and giant super normal profit in short run.

This article is written by Dan Jian Hong 0315761

Refrence from http://www.slideshare.net/9976/panasonic-corporation