Philips VS Matsushita Case Study
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 competitive positions and organizational model, and at the end of the decade, both companies were struggling to reestablish their competitiveness. At the start of the new millennium, new CEOs at both companies were implementing yet another round of strategic initiatives and organizational restructuring. Observers wondered how the changes would affect their long-running competitive battle. The name Philips has become more popular but the company we know as Panasonic nowadays is the brand name of Matsushita. Philips was the producer of only light-bulbs. They became the leader in industrial research. After dividing Product Division and National Organization, they innovated new products (e.g. color TV, Stereo TV, TVs with teletext). But throughout the times of business, Philips continued profitless progress. However, throughout three decades, seven chairmen experimented with recognizing the company to deal with its growing problems. After 1990s Philips started overcoming the profitless progressing problem by cutting its cost through decentralizing its production in different part of the world (e.g. digital audio tape and electric-shaver product lines were relocated in Japan). But after 30 years quest Philips recognized that building efficiency in global operation has failed.
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. The company Matsushita grew rapidly
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 competitive positions and organizational model, and at the end of the decade, both companies were struggling to reestablish their competitiveness. At the start of the new millennium, new CEOs at both companies were implementing yet another round of strategic initiatives and organizational restructuring. Observers wondered how the changes would affect their long-running competitive battle. The name Philips has become more popular but the company we know as Panasonic nowadays is the brand name of Matsushita. Philips was the producer of only light-bulbs. They became the leader in industrial research. After dividing Product Division and National Organization, they innovated new products (e.g. color TV, Stereo TV, TVs with teletext). But throughout the times of business, Philips continued profitless progress. However, throughout three decades, seven chairmen experimented with recognizing the company to deal with its growing problems. After 1990s Philips started overcoming the profitless progressing problem by cutting its cost through decentralizing its production in different part of the world (e.g. digital audio tape and electric-shaver product lines were relocated in Japan). But after 30 years quest Philips recognized that building efficiency in global operation has failed.
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. The company Matsushita grew rapidly