Giant takeover by Panasonic to fuel green shoots?

CSR and promotion of a greener company has rarely seen an example as large as that featured in today’s post about Panasonic. They started courting Sanyo at the beginning of 2008 and following nearly 24 months of planning and negotiation the long awaited takeover/merger of Sanyo under by Panasonic was finally completed last month. For Panasonic this acquisition makes them Japan’s largest electronics company with global revenue of some $90+ billion for 2009. Panasonic began life in 1918 and during their first three decades they manufactured bicycle lamps, irons, domestic appliances and actually rode their growth primarily through the making of bicycles. Panasonic entered into the market for which they are historically most associated (Televisions) in the 1960’s and by the 1980’s TV and audio equipment sustained the business as they became one of the largest companies in their industry. The final purchase price of Sanyo last year was some $6.4 billion and now makes Panasonic the 89th largest business in the world. Sanyo’s name will remain in place as a subsidiary for the time being.

In the four weeks that have passed since the purchase Panasonic/Sanyo have announced a marketing strategy that redraws their commitment to rapid growth in the coming years underpinned by an increased focus on green technologies. So can growth in electronics be a happy marriage that is aligned to becoming a more eco-aware business? Panasonic are promoting an action plan that develops both simultaneously. The proposal – that Panasonic will be able triple its sales in three years while promoting green technologies. Hence the takeover, as Panasonic will draw upon Sanyo’s established expertise in solar panels and rechargeable batteries both of which are instrumental in leading the green electronics race in this decade.

“The two brands will work closely to learn from each other and bring together the wisdom of each company,”        Panasonic

Lithium-Ion Rechargeable Battery

Panasonic seek to be leaders and ahead of the curve by expanding Sanyo’s production bolstering investment in the batteries required for both hybrid electric vehicles and electric vehicles. At the center of the technology and predicted green aligned growth is global domination of the lithium-ion rechargeable battery market in which Panasonic have targeted a global share of 40% by 2016. The lithium-ion battery is considered the greenest option available due to its capacity to retain a higher percent of its original charge with each reuse. Applications are also widespread of course; laptops, cell phones, PDAs and digital cameras. It is also the lightest battery of its type and the compound of technology means it holds a higher energy density than the traditional options. I’m no electronics guru but the principle makes sense to me but you can learn much more here. At the time of the takeover Sanyo led the industry in rechargeable battery manufacturing.

This alliance will be fascinating to watch over the coming years as a giant electronics corporation is promising short term growth, on a global scale and tying this in to a greener business plan than ever before. The most positive sign of all (not a battery pun) is that Panasonic are obviously aware that consumers will follow the path to green and perhaps most pertinently the potential consumers of their goods are amongst the most eco-informed consumers of all. Electronics will continue to grow without a doubt and it is encouraging to see green and growth go hand in hand.