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Toshio was married soon after his return to Japan, but sadly his
new bride came down with pneumonia and died shortly after the ceremony. Emotionally
wounded, Toshio could not shake off a feeling of depression. At his sister's suggestion,
Toshio decided to remarry. In October of 1927, Toshio wed his brother-in-law's
sister. Ready to build a family, Toshio once again immersed himself in work. Though
an economic slump was being felt worldwide, Matsushita Electric was leading the
industry with its extremely popular box lamps invented by Konosuke Matsushita.
The company prospered and from 1927 to 1929 facilities were expanded and new factories
established one after the other, with the aim to build a nation-wide sales network.
Konosuke was often sick, and as Toshio was second in command that meant being
constantly on the move. In 1929, Toshio and his wife moved to Nagoya to establish
a new plant and lived there for six months before returning to Osaka. It was also
at this time that his eldest daughter was born. The family then moved to Tokyo
the following year where his eldest son (Satoshi Iue, current chairman of SANYO)
was born in 1932. In 1933, they once again returned to Osaka. During these ten
years, Toshio and his family were to move ten times.
In December of 1935, Toshio at age 33 was appointed Managing Director. He also
held eight other posts (such as president, vice president, managing director,
etc.) at Matsushita subsidiaries. Accordingly, he was required to travel overseas
to branch offices and plants in Manchuria and Taiwan.
One example of his keen business sense can be seen from his experience in 1936
in Hamamatsu, Japan. Acting as Managing Director for a subsidiary, Toshio was
interested in the sales performances of the company's dry batteries. On learning
that sales in this district saw little growth over a three-year period and knowing
that other districts were enjoying a 40% increase, he decided to investigate.
After visiting several retail stores, he discovered that one shop was purchasing
products from two Matsushita distributors.
Further investigation revealed that the shop lists of the four distributors combined
totalled fifteen hundred when there were only 750 retail shops operating in Hamamatsu.
Clearly retail shops had multiple distributor accounts creating excessive competition
and stagnating growth. To correct the situation, Toshio set up a closed territory
system by having the owners of the four distributors agree to divide Hamamatsu
into four territories. With this system needless conflicts were eliminated and
healthy competition ensued under fair rules.
Results were visible in just two months, and within a year Hamamatsu's total sales
for dry batteries overtook all other districts. Toshio applied the system to other
areas and eventually Matsushita dominated the dry battery market in Japan. Though
common now, at the time this closed territory system was rarely practiced. |
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