Core Viewpoint - The article discusses the evolution of competition in the business landscape from price-cutting to blaming competitors for low pricing, highlighting the detrimental effects of price wars on quality, profitability, and employee wages. Group 1: Price Dynamics and Market Behavior - Ten years ago, competition was primarily about selling cheaper, while now it involves accusations of "price internalization" among competitors [1] - The complaints from businesses, low factory profits, and consumer concerns about quality are all linked to the issue of low prices [2][3] - A stable price increase could lead to brand upgrades and improved income for industry participants, creating a positive feedback loop [4] Group 2: Cost Structures and Value Addition - The article emphasizes that the key question is where the added value comes from when prices rise [5] - Low prices are a result of large-scale standardized production, which reduces costs but does not necessarily improve quality [6][10] - The concept of the "idiot index" introduced by Elon Musk illustrates the relationship between production costs and raw material costs, indicating that high production costs can be a sign of inefficiency [9] Group 3: Market Trends and Consumer Behavior - The price of consumer electronics, such as TVs and air conditioners, has significantly decreased due to larger production scales and market growth, not due to exploitation of the supply chain [12][13][16] - The phenomenon of low prices is often accompanied by market scale growth and a fragmented market structure [14][15] - The article notes that as market saturation occurs, price competition diminishes, leading to stable pricing among major players [20] Group 4: The Role of Value Creation - The article argues that true consumption upgrades occur when previously unaffordable products become accessible to a broader audience, rather than merely shifting from one expensive brand to another [35] - The creation of new added value beyond raw materials and production processes is essential for social wealth creation and purchasing power enhancement [38][59] - High-value products often derive their worth from design, branding, and innovation rather than just manufacturing processes [49][50] Group 5: Labor and Productivity - Improving labor productivity, rather than eliminating low-priced goods, is suggested as a solution to escape the cycle of low pricing [52] - Historical examples, such as Ford's introduction of assembly lines, illustrate how productivity improvements can lead to lower prices without sacrificing quality [53][54] - The article concludes that enhancing the value of human labor is crucial for breaking free from low-price competition [68]

Core Viewpoint - Panasonic announced a global layoff of 10,000 employees, reflecting its struggle and transformation in the face of changing market dynamics and a 17.5% year-on-year decline in net profit for the fiscal year 2024 [2][13]. Group 1: Company Performance and Strategy - The net profit for Panasonic in the fiscal year 2024 was 360 billion yen, significantly impacted by underperforming consumer electronics segments such as televisions and kitchen appliances [2]. - The company is shifting its focus towards high-growth areas, with its home appliance business now accounting for only 40% of total revenue, while 60% comes from B2B sectors like electric vehicle batteries and residential security [7][19]. - Panasonic's proactive adjustments indicate a commitment to optimizing its business philosophy in response to contemporary challenges [2][18]. Group 2: Historical Context and Business Philosophy - Panasonic was founded by Konosuke Matsushita, who emphasized a philosophy of "selfless service" and "water-like" pricing strategies, aiming to provide affordable products to enhance societal well-being [6][20]. - Matsushita's principles, including the "self-creation" philosophy and the importance of nurturing talent, have been foundational to Panasonic's growth from a small workshop to a global giant [4][9]. - The company has historically prioritized employee welfare, exemplified by its commitment to not laying off workers during economic downturns, fostering a strong organizational culture [10][11]. Group 3: Corporate Culture and Social Responsibility - Panasonic's corporate culture is built on principles such as social responsibility, integrity, teamwork, and continuous improvement, which guide its operations and employee relations [14][15]. - The company promotes a philosophy of "coexistence and co-prosperity," emphasizing the importance of mutual benefit among stakeholders [14][20]. - Matsushita's legacy continues to influence modern corporate practices, highlighting the significance of human-centric management and corporate social responsibility in achieving long-term success [20].