Electric Heated Carpets

In the recent times, competition between companies operating in the same field has drastically increased. This is attributable to raised technological knowhow, reduced barriers of entry, improved customer service among other notable factors (Hewitt, 1997). Consequently, businesses have been forced to offer quality and innovative products and services, in order to attract as well as retain customers. In order to ensure this, businesses, both small and the well-established ones, have been forced to merge or have a joint venture with other firms, with an aim of enhancing their sustainability (Hewitt, 1997). Through partnerships, small companies can be able to enjoy a wide an increased customer base as new products and expertise is introduced. This paper will candidly look at the impact of joint venture between Tupperware Brands Corporation (TBC) and Panasonic Corporation from U.S.A and Japan respectively.

In the U.S., the need to keep warm has become a crucial thing in most households. This is due to the fact that, there are many health related issues, especially during winter seasons. As a result, most people are shunning houses without electric carpets as they pose a lot of health dangers. Based on the above arguments, Tupperware Brands Corporation (TBC), which is well-renowned for manufacturing and distributing household properties and headquartered in Orlando, Florida is partnering with Panasonic Corporation from Japan to sell electric heated carpets, which are not currently available in the U.S. market. Panasonic Company has a high reputation as a result of selling quality consumer electronic products such as electric heated carpets (“Technabob”, 2007). These carpets can heat up to 114°F/46°C, though this temperature can be regulated. The heating elements present in these rugs are germ and stain resistance as well as waterproof, thus preventing cases of electrocution (“Technabob”, 2007). Since Tupperware Brands Corporation is well- known for selling high quality household equipments across the globe, it will be easy to target high number of customers, both in the U.S. and overseas. This will in turn translate to higher sales turnover, thus high profitability for both companies.

Panasonic Corporation, which was earlier known as Matsushita Electric Industrial Co., Ltd, is a multinational company, whose headquarters is in Osaka, Japan. The firm specializes in manufacturing as well as selling of consumer electronic products. The firm was established in 1918 and it has enormously grown to become one of the largest electronic producers in Japan alongside other companies such as Toshiba, Sony, and Canon among others (Panasonic Corporation Home Page, 2012). On the other hand, Tupperware Brands Corporation was established in 1958 in the U.S. and is well for selling plastic containers along with other household items. Currently, the firm has a sales force of approximately 2.7 million people and operates in more than 100 countries (Tupperware Brands Home page, 2012). As a result of the joint venture of these two reputable companies, the sale of these carpets will drastically increase. During the FY 2011, Panasonic only sold approximately 3 million units of these carpets, though this is expected to change (Panasonic Corporation Home Page, 2012). After the partnership each unit will be sold $300, a factor that will significantly increase sales as indicated in the table below.







Projected Sales  in U.S. market (in million $)






Projected Sales  in Foreign  markets (in million $)












As a result of the high sales figures, the two companies will face stiff competition from companies operating in the U.S. as well as abroad. For instance, Empire Carpets, which has recently acquired Luna Carpets all situated in Chicago, may significantly reduce customer base in these areas. Further, other consumer electronics companies such as Toshiba may venture in this business, thus raising competition levels. In order to attain the above sales projections, the new venture will be located in London, U.K. This way, it will be possible to access various markets at ease, thus highly reducing the operational costs. The new merger will significantly affect the two companies, in terms of the number of employees, image, and revenues among other critical areas affecting businesses. For instance, Panasonic products are not well known in the U.S. market. Therefore, the joint venture will help the firm to market other product in the U.S. market, thus raising its overall sales figures. Further, the venture will help the employees to to embrace other cultures, since both companies come from different backgrounds. Consequently, this will help to improve customer satisfaction levels, thus making the companies to be sustainable both in the short and long-run (Hewitt, 1997).

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