Two major competitors in the global consumer electronics industry, Philips of the Netherlands and Matsushita of Japan, both have extensive histories that can be traced back more than a century. They have each followed different strategies and have had significant capabilities and downfalls along the way. In general, Philips built its tenured success on a portfolio of responsive national organizations. On the other hand, Matsushita based its global strategy on a centralized and efficient operation through Japan. As they developed and reorganized their international strategies, each company was forced to undertake its strategic posture and restructuring as its competition position fell.
In 1892, Gerard Philips and his father opened a small light-bulb factory in Eindhoven, Holland. And Gerard’s brother, Anton, an excellent sales man and manager. By 1900, Philips was the third largest light-bulb producer in Europe. Philips became a leader in industrial research, creating physics and chemistry labs to address production problems. The labs developed a tungsten metal filament bulb that was a great commercial success and gave Philips the financial strength to compete against its giant rivals. During the late 1930s, Philips transferred its overseas assets to British Philips and the North American Philips. From the end of 1960s, Philips attempted to reorganization. In 1971, Van Reimsdijk proposed rebalancing the managerial relationships between the national organizations and product divisions. The Philips have to decrease the number of products marketed, build scale by concentrating production, and increase the product flows across NOs. in 1982, Wisse Dekker closed the inefficient operations in Europe and continued the Van Reimsdijk “tilt the matrix” strategy. In 1987, Van der Klugt designated various businesses as core and non-core and continued efforts to strength the PDs relatives to the NOS. But in 1990, van der Klugt and half of the management...
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