Susan Cumpton
PHL-3100 International Management
April 11, 2015
Professor Ismail
Throughout History Philips and Matsushita have charted different strategies as well as different organizational structures, and the outcome has been the same; success. With success comes adversity and both companies’ experienced major challenges in the beginning of the 21st century. Both CEO’s were forced to implement organizational restructurings as well as new strategies. How they would come out of was unknown as well as if their competitive nature with each other would continue. In 1892 Gerard Philips and his father founded a small light bulb company in Eindhoven Holland, at firs the ventured failed and they were forced to recruit Gerard’s brother Anton an excellent salesman. Philips focused on a singled product while larger electrical production companies raced to diversify. Innovation was a priority and Philips company policy was to keep up with modern technology and advancement in research. Philips labs developed a tungsten metal filament bulb that gave them finical strength to compete against it rivals..
In 1899 Anton hired the companies first export manager and the company was sell into markets in Japan, Australia, Canada, Brazil, and Russia. By 1900 Philips was the third largest light-bulb producer in Europe. By 1912 the lamp industry stated showing an overcapacity of companies so Philips started building sales organizations in the United States, Canada and France, while all other function remained centralized in Eindhoven. In many foreign countries Philips created joint venture with local to gain market acceptance. In 1919 Phillips entered into partnership with General Electric giving each company use of the others patents as well as divining the world into three spheres of influence. Philips had also broaden its production into vacuum tubes, x-ray tubes and radios.
Before they war they had transferred its assets into tow
References: Bartlett, C. A., & Beamish, P. W. (2014). Developing a Transnational Organization. In Transnational management: Text, cases, and readings in cross-border management (7th ed., pp. 311-327). New York, NY: McGraw-Hill Irwin.