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
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1) How did Philips become the leading consumer electronics company in the postwar era? What distinctive competence did they build? Philips became the leading consumer electronics in the world in the post-war period by a strong investment in research and development of their independent national organizations‚ and good communication between the organizations. Philips has continued this tradition with fourteen divisions of product development‚ production and distribution in the world‚ which
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Philips: Internal Strengths: * 1900 – Philips was third largest light bulb producer in Europe due to recruitment of Gerard Philips’ brother‚ an excellent salesman. (C85) * From the beginning‚ Philips developed a tradition of caring for workers. Built company houses in Eindhoven along with bolstering education and paying employees very well (C85) * Philips refused to diversify in the beginning‚ keeping a one-product focus and creating significant innovations (C85) * Became leader
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Philips was founded by Gerard Philips and his father in 1892 in Eindhoven‚ Holland . Then‚ they recruited Anton Philips (Herard ’s brother)‚ an excellent salesman and manager‚ and soon after they became the third largest light-bulb producer in Europe. However from its beginning on it always took care for his workers. As an example in Eindhoven it built company houses‚ bolstered education‚ and paid its employees so well that other local employers complained. When larger electrical product companies
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Philips and Matsushita are two giants in the global consumer electronics market. Their international strategies and organizations are very different — while the former pursued a localization strategy‚ the latter pursued a global standardization strategy; while the former made use of highly self-sufficient national organizations (NOs) for strong local responsiveness‚ the latter adopted ”one product one division” structure for cost cutting. Nevertheless‚ both companies encountered their difficulties
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Problem Identification * How can Philips achieve a balance between centralization to achieve global integration and decentralization to achieve national responsiveness while maintaining their competitive advantage in the emerging global market conditions? - Does Philips’ business strategy provide for a global competitive advantaged - Are Philips’ core competencies still advantages? Hypothesis * Philips needs to simplify its structure through consolidation of product divisions and making business
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Philips versus Matsushita: A New Century‚ a New Round Overview of the Case: N.V. Philips (Netherlands) and Matsushita Electronic (Japan) had followed very different strategies and emerged with very new and 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 1990s‚ both company faced major challenge to their
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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
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1. How did Philips become the leading consumer electronics company in the world in the postwar era? What distinctive competence did they build? What distinctive incompetencies? In anticipation of the impending war in the late 1930s‚ Philips transferred its overseas assets to two trusts‚ British Philips and the North American Philips Corporation. It moved most of its vital research laboratories to England and its top management to the United States. Isolated from their parents and supported
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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
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