Hammered by competition from South Korean rivals such as Samsung Electronics, Panasonic may also squeeze wages and seek joint ventures in its semiconductors and other struggling operations in a bid to rekindle profit growth, Tsuga said.
Shares in Panasonic slipped 1.4 percent to a two-week low in Tokyo morning trade, compared to a 0.4 percent increase on the benchmark Nikkei average.
The Panasonic chief said in an earlier keynote speech he would pursue strategies to expand business-to-business sales of car batteries, in-flight entertainment systems, hydrogen cells, solar panels and LED lighting.
Japan's share of the world's flat panel TV market this year likely contracted to 31 percent compared with 41 percent in 2010, according to the Japan Electronics and Information Technology Industries Association.
Panasonic earlier unveiled a prototype of the world's largest organic light-emitting display screen in a show of technological one-upmanship with its South Korean rivals Samsung and LG Electronics Inc.
Sony Corp, which is cooperating with Panasonic in OLED technology, unwrapped on Monday its own 56-inch ultra high-definition model.
Tsuga, who heads Japan's biggest commercial employer with 300,000 staff, is also pursuing a niche strategy and bolstering the company's appliance business in a bid to capture more profitable markets while the likes of Samsung and Apple Inc slug it out in mass-market consumer electronics.
The executive has promised to deliver the details of the revival plan by the end of March, when he plans to reorganize 88 businesses into 56 units.
So far he has said that businesses that fail to achieve a 5 percent operating margin within two years will be shuttered or sold. Sales of the weakest ones may start next business year. Panasonic in the year to March 31 is forecasting a net loss of $8.9 billion.
© Thomson Reuters 2012