Solution for the Case Philips Versus Matsushita
Philips versus Matsushita
Case summary of Philips: The company has built its success on worldwide portfolio of responsive national organizations (NO). The company was established by Gerard Philips and his father opened a small light bulb factory in Eindhoven, Holland in 1892.The company faced a tough fall. Gerald then recruited his brother Anton, a salesman and manager. In 1900 it became the 3rd largest producer of light-bulb in Europe and in 1912 Philips was incorporated. The company didn’t opt for diversification and was the leader in industrial research; it had physics and chemistry labs which were basically meant for the company’s production process. The Lab developed a tungsten filament bulb which was a great success. It came with diverse markets in Japan, Australia, Canada, Brazil, Russia, US, Canada, and France. It became a decentralized sales organization (marketing companies in 14 European countries, China, Brazil, and Australia.). It had a shared leadership with transfer of overseas assets to two trusts by late 1930’s. The organization was split to NOs and PDs. The independent NO’s great advantage was ability to sense and respond to the differences and Product development became a function of local market conditions. Research function remained independent with 8 more labs were set up in Europe and US. In late 1960, there was a creation of common market eroding trade barriers within Europe, in 1960s audiocassette were invented but Japanese captured the market, in 1970s videocassette(v2000) were developed but was forced to abandon when North American Philips decided it to outsource which was manufactured under license from Matsushita, Over 3 decades, 7 chairmen experimented reorganizing, yet entering the new millennium, its financial performance remained poor. In 1970s rebalancing the managerial relations between Nos and
Case summary of Philips: The company has built its success on worldwide portfolio of responsive national organizations (NO). The company was established by Gerard Philips and his father opened a small light bulb factory in Eindhoven, Holland in 1892.The company faced a tough fall. Gerald then recruited his brother Anton, a salesman and manager. In 1900 it became the 3rd largest producer of light-bulb in Europe and in 1912 Philips was incorporated. The company didn’t opt for diversification and was the leader in industrial research; it had physics and chemistry labs which were basically meant for the company’s production process. The Lab developed a tungsten filament bulb which was a great success. It came with diverse markets in Japan, Australia, Canada, Brazil, Russia, US, Canada, and France. It became a decentralized sales organization (marketing companies in 14 European countries, China, Brazil, and Australia.). It had a shared leadership with transfer of overseas assets to two trusts by late 1930’s. The organization was split to NOs and PDs. The independent NO’s great advantage was ability to sense and respond to the differences and Product development became a function of local market conditions. Research function remained independent with 8 more labs were set up in Europe and US. In late 1960, there was a creation of common market eroding trade barriers within Europe, in 1960s audiocassette were invented but Japanese captured the market, in 1970s videocassette(v2000) were developed but was forced to abandon when North American Philips decided it to outsource which was manufactured under license from Matsushita, Over 3 decades, 7 chairmen experimented reorganizing, yet entering the new millennium, its financial performance remained poor. In 1970s rebalancing the managerial relations between Nos and