Comparing and Contrasting Similar Companies: Philips and Matsushita
From their early beginnings in the late 1800s and early 1900s, N.V. Philips and Matsushita Electric respectively became two of the largest consumer electronics companies in the world using very different corporate structures and philosophies. Due to the events of World War II, Philips employed a multinational strategy with strong, local units driving innovation, which is historically an uncommon strategy in the consumer electronics industry. On the other hand, Matsushita followed the traditional electronics industry and Japanese philosophy of global standardization, maintaining central control and surveillance over operations abroad to have a lower cost structure and quick response to market demands.
While the two strategies are very different, each company experienced great success using their chosen strategy but they also contributed to the precarious positions in which the companies eventually found themselves. This analysis will discuss how both companies should have employed characteristics of each international strategy in order to maintain their position, sales, and profitability in the global consumer electronics industry
This essay will also address the cost consequences (monetary and reputation) each company has incurred up to this point trying to change strategies as well as the most important issues facing management for each company: o Philips: go back to strong national organizations with corporate support, innovation/technology development, more overseas production, better marketing and market research o Matsushita: strengthening, empowering, and building trust with local entities, innovation, update product offerings, and strengthen the Panasonic brand equity/image
Philips. The multinational company structure of Philips can be directly attributed to the survival steps the company took to keep the company operational during World War II. Setting up individual and autonomous national organizations (NOs) not only enabled the company to
While the two strategies are very different, each company experienced great success using their chosen strategy but they also contributed to the precarious positions in which the companies eventually found themselves. This analysis will discuss how both companies should have employed characteristics of each international strategy in order to maintain their position, sales, and profitability in the global consumer electronics industry
This essay will also address the cost consequences (monetary and reputation) each company has incurred up to this point trying to change strategies as well as the most important issues facing management for each company: o Philips: go back to strong national organizations with corporate support, innovation/technology development, more overseas production, better marketing and market research o Matsushita: strengthening, empowering, and building trust with local entities, innovation, update product offerings, and strengthen the Panasonic brand equity/image
Philips. The multinational company structure of Philips can be directly attributed to the survival steps the company took to keep the company operational during World War II. Setting up individual and autonomous national organizations (NOs) not only enabled the company to