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Case Analysis: Philips versus Matsushita

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Case Analysis: Philips versus Matsushita
Case analysis: Philips versus Matsushita: A New Century, a New Round
A case analysis comprises four components, 1) A specification of the problem being faced 2) The delineation of best alternatives available to solve this problems 3) An identification (and discussion) of each of the issues which bear up on the choice of alternatives 4) A conclusion which deduces the best alternative from facts and discussion • The case as a written report of 1000 words.
Possible Structure of a Case Analysis ➢ Title page ➢ Definition of issue / problem statement ➢ Data analysis ➢ Generating alternatives ➢ Defining decision criteria ➢ Analyzing and evaluating alternatives ➢ Selecting preferred alternatives ➢ Actions and implementation plan ➢ Exhibits

Philips versus Matsushita: A New Century, a New Round

This case was prepared by Christopher A. Bartlett, Harvard Business School

Throughout their long histories, N.V. Philips (Netherlands) and Matsushita Electric (Japan) had followed very different strategies and emerged with very different organizational capabilities. Philips built its success on a worldwide portfolio of responsive national organizations, while Matsushita based its global competitiveness on its centralized, highly efficient operations in Japan.

During the 1990s, both companies experienced major challenges to their historic competitive positions and organizational models and at the end of the decade; both companies were struggling to reestablish their competitiveness. At the start of the new millennium, new CEOs at both companies were implementing yet another round of strategic initiatives and organizational restructurings. Observers wondered how the changes would affect their long running competitive battle.

Philips: Background
In 1892, Gerard Philips and his father opened a small light-bulb factory in Eindhoven, Holland.
When their venture almost failed, they recruited Gerard’s brother,

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