Compare And Contrast Philips And Matsushita

There are many businesses that have expanded their business internationally in order to benefit in some sort of way rather it revenue or a better market for their product. In this thesis, I will research a multination company and its international strategy over the last 10 years. I will elaborate on it international orientation and rather it etho-, poly-, or geocentric. I than explain why the company decided on expanding to the chosen locations. Then I will clarify if they had core capability to succeed in those markets, along with its

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

It was evident that Philips was aware of the importance of globalising their company in the post-war era, coupled with the small domestic market, and in 1912, the company began to internationalise, resulting in becoming a multinational enterprise. Some of the main features that suggest this is that they had multiple operating environments, global competitive game, and organisational complexity and diversity. Before the anticipated

Philips and Matsushita are two electronic (equipment and service) based powerhouses who had to expand their business to the international market. One my ask why they needed to operate internationally… each company, Philips and Matsushita, wanted to stand in front of their peer companies as the market leader in the industry. In order to do this, each company would go through various changes, some of which hurt and some of which

Considering the conducted research and analysis, it can be clearly seen that the international strategy is not effective, that is why, needs to be fixed. Moreover, the company has a success in the local market, so it may be reasonable to put the efforts to promote inside the country.

An application into the case of Lincoln Electric shows that this company is correct in doing international expansions. Such actions are suitable for the market development strategy when the company wants to increase sales outside the domestic market. In addition, because of diversified markets during the global expansions, this company has customized products to fit for or developed new ones. Thus, it is changing towards diversification strategy. The both success and failures of Lincoln during the international expansions are helpful for other industries. Importantly, a thorough understanding of the local is a key for international expansions (E. Porter,

British grocery and general merchandise retailer Tesco PLC had announced they were to depart from their international operations within Japan and the United States markets, Tesco had stated that they were to end of such operations due it being unprofitable (Reuters, 2013). This paper seeks out to critically analyse and address the factors which had led to Tesco’s failure in the Japanese and United States market. To aid in justifying the influences in Tesco’s departure relevant international business literature will be evaluated for the suggested reasons for the exit. Furthermore, Part (B) of the paper seeks out to discuss the management of transnational businesses , a range of theories concerning the internationalisation of firms will be compared and contrasted, for instance the explanations presented by Vernon, Johnson and Dunning will aid towards the reasons for the internationalisation process of emerging market multinationals.

Royal Philips NV and Matsushita (owner of the Panasonic brand among others) are two of the world’s biggest electronics multinationals. After successfully building their global empires in the early twentieth century, they have both suffered financially in recent decades. It is therefore interesting to look at why this has happened and what their future prospects are.

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 were trying to diversify Philips only focused on one product, light-bulbs which enabled the company to create significant innovations.

The difference between this strategy and international strategy that, according to the different markets in different countries, to meet local market needs to provide better products and services; the same point, this strategy is also his country developed products and skills to foreign markets, but also engaged in production activities in the important market of the host country. Thus, higher cost structure of such a strategy, can not get the experience curve benefits and regional benefits. Consumer needs and desires, industry conditions (e.g., the number and type of competitors), political and legal structures, and social norms vary by country.

Globalization has created a great amount of advantages and disadvantages for businesses of all different varieties. International business relationships have allowed companies to operate more efficiently by moving manufacturing to foreign nations that offer cheaper labor (Petri, 1991). Additionally, the business environment is greatly impacted by global forces that may put organizations at a disadvantage (Lowe & McCrohan, 1989). When companies operate on a global level, they are expected to respond to the cultural and economical dynamics of the nations in which they are conducting business (Petri, 1991). Failing to acknowledge such dynamics can ultimately discourage foreign consumers from purchasing goods and services that are offered from international businesses (Lowe & McCrohan, 1989). Moreover, organizations face larger competition as well as exchange risk.

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

In contrast to Philips, Matsushita’s success stems from highly efficient and centralized operations. Also unlike Philips, Matsushita’s numerous domestic retail outlets in Japan are ideal for the sale and distribution of their products and provide valuable market research opportunities and capabilities. Both the structure and culture at Matsushita encourage an entrepreneurial drive in their employees and divisions, as they compete for funds to develop new products, and extraordinary communication exists between the international operations and the home office in Japan.

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.

These large MNCs are based almost exclusively in advanced industrialized countries; ninety-nine of the 100 largest firms are from the United States, Western Europe, or Japan and more than 5/6ths of all parent corporations are based in