Philips Versus Matsushita Case Analysi
Case Analysis
Philips versus Matsushita: A New Century, a New Round
Summary
This analysis is based on two corporations, N.V. Philips (Netherlands) and Matsushita Electric (Japan). The two companies both have experienced big changes and have different strategies and organizational capabilities now. With their distinctive operations and management, they got success and continued to compete with each other and occupied the leader position in global markets nowadays. The analysis discusses how they get success, what make them be successful, the changes they experienced, the impact of these changes and the reasons why changes are so hard for them. SWOT analysis is used to analyze Philips’ distinctive competences and incompetence. The excellent international management is the key point of Philips’s success. Several factors are considered to state Matsushita success, like divisional structure as the most significant one, innovative operation localization and Matsushita’s special business philosophy. Also recommendations are given to these two companies when they both similarly face strategic challenges. Among the recommendations, there are several perspectives: rebuilding the brands and investing in research and innovation for both companies; improving regulations and monitoring for Philips; balancing its centralization and making it work in local mechanism for Matsushita.
Introduction
In this case, the author introduced Philips and Matsushita’s background, organizational development, reorganization, changes and challenges. Philips was founded by Gerard Philips in 1892; it developed a traditional of caring for works from this time. Philips only made light-bulbs firstly and begun to broaden its products lines in 1918. It developed the NOs, the NOs had important positions among the management levels and also they had special attractiveness. From late 1960s, Philips’s seven chairmen experimented with reorganizing the company to deal with its
Philips versus Matsushita: A New Century, a New Round
Summary
This analysis is based on two corporations, N.V. Philips (Netherlands) and Matsushita Electric (Japan). The two companies both have experienced big changes and have different strategies and organizational capabilities now. With their distinctive operations and management, they got success and continued to compete with each other and occupied the leader position in global markets nowadays. The analysis discusses how they get success, what make them be successful, the changes they experienced, the impact of these changes and the reasons why changes are so hard for them. SWOT analysis is used to analyze Philips’ distinctive competences and incompetence. The excellent international management is the key point of Philips’s success. Several factors are considered to state Matsushita success, like divisional structure as the most significant one, innovative operation localization and Matsushita’s special business philosophy. Also recommendations are given to these two companies when they both similarly face strategic challenges. Among the recommendations, there are several perspectives: rebuilding the brands and investing in research and innovation for both companies; improving regulations and monitoring for Philips; balancing its centralization and making it work in local mechanism for Matsushita.
Introduction
In this case, the author introduced Philips and Matsushita’s background, organizational development, reorganization, changes and challenges. Philips was founded by Gerard Philips in 1892; it developed a traditional of caring for works from this time. Philips only made light-bulbs firstly and begun to broaden its products lines in 1918. It developed the NOs, the NOs had important positions among the management levels and also they had special attractiveness. From late 1960s, Philips’s seven chairmen experimented with reorganizing the company to deal with its