January 21, 2014

, New York

WILL PANASONIC MAKE IT?

posted by Francis_McInerney

I wrote Panasonic (St. Martin’s) eight years ago and a lot has happened since.  The CEO who I advised during the 2000-2006 restructuring that I chronicled, Kirk Nakamura, was succeeded by a management team that shifted away from the prescriptions in Panasonic and the company lost over $20 billion as a result.  A new Team under Kaz Tsuga has been in place for 18 months and it’s time to check on how it is doing.
You can see Tsuga’s big challenge here.  Panasonic’s uncompetitive ecosystem deprives it of a great deal of foregone profit and shareholder value.  It adds a lot …


January 17, 2014

, New York

NINTENDO’S ECOSYSTEM CRASHES

posted by Francis_McInerney

Nintendo announced today that it will turn from a projected ¥55 billion profit to a ¥250 billion loss for its March 31st fiscal year end.  That’s a turnaround of nearly $3 billion in the wrong direction.  And that, Kodak-style, it will have to change its business model.  Is this a surprise?  To anyone watching Nintendo’s Ecosystem Velocity, the answer is no.  In fact, as with so many Japanese companies (see my upcoming book, Super Genba: 10 Things Japanese Companies Must do to Gain Global Competitiveness), Nintendo’s fall from grace was easy to foresee years ago.  The question is, why didn’t …


January 6, 2014

, New York

SAMSUNG’S ECOSYSTEM VELOCITY STALLS

posted by Francis_McInerney

Samsung is to report its latest quarter tomorrow.  I will be looking at the data closely to see if its Ecosystem Velocity is becoming competitive.  If no, the company is the next Panasonic.  If yes, it has another life to live.
First, lets review the data from Samsung’s last fiscal year.

What you see is pretty ugly.  Inventory days of sales that should be less than 10 days are three times that.  Receivable days running more than twice what they should be.  This means that both Samsung’s supply chain and sales operations are failing the company.  Its ecosystem — end-to-end — is …



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