With its main plant located in Shanghai, China, Worldwide Corporation mounts printed circuit boards and produces electronic components, moulded plastic parts, and metallic pressed parts. Some parts and materials are shipped to Shanghai from Kusatsu, Shiga Prefecture, in Japan, and constant communication flows between the Shanghai Plant and the Osaka Support Team, for procuring materials and adjusting deadlines, and the distribution centre in Kobe, for shipping and customs operations. The number of trips from Japan required for these business activities continued to increase, and the costs continued to rise. To achieve better overseas communication, the company installed a videoconference system (a non-Panasonic system) and used it to communicate with the Shanghai Plant. However, the image quality and sound quality were poor, and the connection was frequently interrupted. There were also other problems, such as the fact that the communication line was metered and the cost per hour was quite high, so the system could not be used for long time periods. As such, it didn't provide the company with the basic communication that it needed. Also, when a product defect occurred, the problem product had to be shipped from the Shanghai Plant for inspection in Japan, which was both time consuming and costly.
Worldwide Corporation manufactures and markets electronic components and precision parts, such as capacitors. It established a base in China at an early stage, and expanded its operations to a global scale. The Shanghai Plant serves as its main plant, with an integrated shipping system that covers everything from production and procurement to export. This allows the company to provide high-quality products worldwide at low cost.