Case 43: Sanyo Electric (Japan, 2007)

• Prof. Dr. Klaus Henselmann
• Dr. Stefan Hofmann

Like other Japanese electronics makers, Osaka-based Sanyo Electric Co. struggled with heavy financial losses as it faced a brutally competitive pricing market for many of its products. These products (including cell phones, digital cameras and portable music players) were once strong profit producers but became a commodity in recent years amid competition from cheaper alternatives made in China and other Asian countries. For the fiscal year that ended in March 2004, Sanyo posted a net profit of USD 11.6 million, followed by a net loss of USD 1.1 billion in 2005 and USD 1.7 billion in 2006.

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