Electronics makers, which served as a crucial engine of the Japanese economy during the period of high growth, are now experiencing difficult times. Certainly they suffered greatly from external factors such as the 3/11 disasters, the floods in Thailand and the strong yen. But leaders of these companies should realize that a failure to correctly grasp the needs of consumers as well as the moves of their overseas rivals and the market situation abroad have also contributed to their difficulties.
Panasonic, Sony and Sharp are expected to suffer big losses on the consolidated basis in the business year that ends March 31. Their under-performance is attributable partly to their failure to effectively compete in pricing for thin-display televisions.
In the 2012 business year, Panasonic and Sharp are expected to register a record group net loss — ¥780 billion and ¥290 billion, respectively. Sony is expected to suffer a group net loss of ¥220 billion. The combined losses of these three companies reach a staggering figure of nearly ¥1.3 trillion.