With the independent management system, the company can benefit from the ability to sense and quickly respond to the differences in the local markets. They became the leader in industrial research.
In contrast, Matsushita has built their overseas organization based on their corporate culture and sprit. How to Write a Summary of an Article? The name Philips has become more popular but the company we know as Panasonic nowadays is the brand name of Matsushita.
Seven Spirits of Matsushita Service through Industry. Philips built their overseas operations by allowing each business units to become more independent and to be able to response to each country-specific market.
Another import issue is the flexibility. The company Matsushita grew rapidly and expanded into battery powered lamps, electric irons and radios. Japanese company, Matsushita, began their internationalization by exporting their core products, such as Color TV and VCRs, to the large-scale market.
Philips was the producer of only light-bulbs. There are inherent risks involved in focusing on the development of new products.
Philips had developed efficient, specialized, and multi-market production facilities that required each division to focus on specific business area. However, Philips needs to re-develop the competency after the cutbacks to funding and the divestiture of several key high-tech companies.
The expansion strategies should be able to enhance those competitive advantages, as well as reflect the need for multidimensional and flexible capabilities.
Philips Netherlands and Matsushita Electronic Japan had followed very different strategies and emerged with very new and different organizational capabilities.
We will write a custom essay sample on Philips V. To maintain a strong operating control over their offshore operations, every business unit in other countries has to be reported to the headquarters. Management Philips and matsushita essay, after the time, Philips started to decentralize their organizations and built their production facilities in different regions to protect its foreign sales from the trade barrier and high tariffs.
During s, both company faced major challenge to their competitive positions and organizational model, and at the end of the decade, both companies were struggling to reestablish their competitiveness. Get Full Essay Get access to this section to get all help you need with your essay and educational issues.
Global Marketing campaigns to increase awareness of Philips brand while deemphasizing most of the other brands it supported worldwide in played a major role in the comeback that Philips experienced in the late s.
To survive in the changing environment, these companies had to develop their plans, restructure their organization to response in the different economic circumstances, as well as enhance their capabilities to maintain their competitive advantage.
Divestiture of non-core products allows Philips to focus on their competencies in research and development. After dividing Product Division and National Organization, they innovated new products e.
Situation Analysis The case analysis will discuss about how firms differently optimize their global efficiency, national responsiveness, and worldwide learning to pursue the success in the emerging global market conditions. However, the main issue of this model is that overseas subsidiaries will have a limit outlook and an inferior attitude toward to their value in the organization because of the assumption that new ideas and development have to be come from the headquarters.
To pursue the sustainable achievement, the companies should figure out what are the core competencies inside the organization and what are the future opportunities before shifting their focus to the different demand in global market.
At the start of the new millennium, new CEOs at both companies were implementing yet another round of strategic initiatives and organizational restructuring. However, the major issue of this organizational system is the lack of communication between each NO and headquarters, so the inventions were not shared with the rest of the NOs in Philips.
Observers wondered how the changes would affect their long-running competitive battle. Those emerging technology from NOs might have a larger production demands than most national plants justify, for example, the audiocassettes and microwave ovens.
The rise of new competition will cause price collapse and make Matsushita uncompetitive. Internal resistance prevents the company to change their strategies to deal with the different circumstance.
During the Great Depression Philips developed a multi-domestic or country centered strategy where national subsidiaries were responsible mainly for the domestic markets in which they operated.
In this case, Philips might have to adopt the cross-learning philosophy into their organization structure to increase collaboration between NOs and headquarters. On the other hand Konosuke Matsushita, a 23 years old inspector started his business with Osaka Electric Light Company, started production of double ended socket.
Global marketing campaigns increase the idea of Philips being a global brand. They have developed the strong relationship between overseas subsidiaries and headquarter to maximize the collaboration across countries.
On the 14th anniversary of Matsushita, KM announced to his employees a year corporate plane broke into 25 years section, each to be carried out by successive generations. More essays like this: There are both advantage and disadvantage in each strategy and management style.
Even though they continue to build their divisions in many regions, Matsushita still tried to keep their offshore operations under the parent company control in order to monitor quality and productivity level on their products.
There are internal factors, including norms, cultures, communication style, and external factors, such as market demands and world economic situation, that reflect their transnational strategies and organizational structures.This case deals with Philips and Matsushita, who are well recognized in worldwide consumer electronics market.
Philips is now based in Amsterdam. The main differences between Matsushita and Sony’s products are that, Matsushita product line is more involved in the household appliances market as it is the world leader in this category, while Sony strives to be the globe’s technological leader and has a product line that is driven by advanced consumer electronics.
Philips vs. Matsushita Essay Sample. 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?
Philips Matsushita Essay PHILIPS / MATSUSHITA STRATEGIC RECOMMENDATIONS In response to Harward Business School Case PHILIPS N.V. Philips should pursue transnational structure by establishing integrated network of distributed and interdependent resources and capabilities in its core.
Another factor that helped Matsushita propel past Philips in the industry was the company’s getting headway in the color television market and its domination of the VCR market.
Although Matsushita did not have a strong brand name being relatively new to the industry, it was able to maintain itself through by selling its products through. Japanese company, Matsushita, began their internationalization by exporting their core products, such as Color TV and VCRs, to the large-scale market.
We will write a custom essay sample on Philips V. Matsushita.Download