Philips Versus Matsushita Case
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 is another factor in the success of Philips. They had built national organizations that recognize a great advantage of the situation and respond to differences in local countries and product development was based on local market conditions. They also had to transfer their assets abroad in trusts in the UK and the U.S. and they moved most of its research staff in England, and senior executives in the US.
Competence : Independent National Organizations – And Enforce market specific research
The management board decided to construct the postwar organization on the dynamics of the National Organizations (NOs).
They were capable of responding to specific local market conditions.
National responsiveness of Philips was so high. National Organizations built their technical capabilities; product development often became a function of local market conditions.
Such as, Philips of Canada – created their first color TV.
Philips of Australia created first stereo TV.
Philips of UK created the first TVs with teletext.
2) How did Matsushita succeed in displacing Philips as No. 1? What were its distinctive competencies and incompetencies?
The birth of VCR (video cassette recorder) propelled Matsushita into first place in the consumer electronics industry during the 1980’s.
They developed the VCR technology. They launched and introduced their commercial and industrial VCRs. Their globalization movements shifted them to low-wage countries. They built product
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 is another factor in the success of Philips. They had built national organizations that recognize a great advantage of the situation and respond to differences in local countries and product development was based on local market conditions. They also had to transfer their assets abroad in trusts in the UK and the U.S. and they moved most of its research staff in England, and senior executives in the US.
Competence : Independent National Organizations – And Enforce market specific research
The management board decided to construct the postwar organization on the dynamics of the National Organizations (NOs).
They were capable of responding to specific local market conditions.
National responsiveness of Philips was so high. National Organizations built their technical capabilities; product development often became a function of local market conditions.
Such as, Philips of Canada – created their first color TV.
Philips of Australia created first stereo TV.
Philips of UK created the first TVs with teletext.
2) How did Matsushita succeed in displacing Philips as No. 1? What were its distinctive competencies and incompetencies?
The birth of VCR (video cassette recorder) propelled Matsushita into first place in the consumer electronics industry during the 1980’s.
They developed the VCR technology. They launched and introduced their commercial and industrial VCRs. Their globalization movements shifted them to low-wage countries. They built product