Philips versus Matsushita: Individual Case

1200 WordsJan 30, 20185 Pages
Philips versus Matsushita: Individual Case Philips and Matsushita, two major competitors in the consumer electronic industry, followed different strategies to overcome different environmental factors over the century. Philips focused mainly on responsive national organizations with multi domestic strategy, while Matsushita focused on centralized and efficient operation through global strategy. However, not all implemented strategy was successful. Environmental Factor: Postwar Philips Postwar environment caused Philips to build organization on the strengths of the national organizations, since their industrial plant in Netherlands were destroyed. Because they previously anticipated this war, they were able to transfer oversea assets into two trust, research labs were moved to England, and top management to U.S. Because of this, the individual country organization became more independent. Therefore, Philips was self-sufficient and was able to respond to country specific market conditions, since preferences and economic conditions varied. Philips’ company structure incorporated a matrix mix between product divisions and national organization. Although, geographic and product matrix was the formal corporate-level structure, national organization had more power. Philips recognized the importance of foreign operations and they chose to incorporate the multi domestic strategy. This was a strategy with high cost, multi country, decentralized control, and high responsiveness
Open Document