From the Bloomberg Businessweek article on Panasonic, this excerpt is proof in the case for specialization. Specialists continue to thrive while generalists eventually lose money and have to sell off divisions.

Like many Japanese consumer electronics companies, Panasonic (6752:JP) has tried to be all things to all customers, making everything from smartphones to solar panels. And like its domestic rivals, it faces competition from lower-cost manufacturers in South Korea and China. Panasonic lost a combined 1.5 trillion yen in the two years ended in March 2013.

Over the past year, however, Chief Executive Officer Kazuhiro Tsuga has engineered a revamp of the Osaka-based company. By getting out of such money-losing businesses and focusing on new ventures, Panasonic is pushing through “essential structural reforms,” says Chief Financial Officer Hideaki Kawai. Tsuga has said that he plans to eliminate unprofitable divisions by March 2016.