Philips vs Matsushita

LCD & Plasma Component Makers Raise their Competitiveness (2010) stated that in the technology industry, foreign brands, such as Samsung and LG, still occupy a strong position. Consumers demand higher quality, they pursue cheap products and high quality and enjoyment. In the supply condition, the more competitive the product is, its features are more attractive. Between foreign and domestic prices of brand, new products style and maintenances servers, these terms become a fierce competition for the suppliers.

To become a leading consumer electronics company in the post-war era, Philips implemented the strategy of a multinational company from early on, and also benefited from proficient leaders, Gerard and Anton. Philips managed to gain successes through becoming a multinational enterprise, evident through various characteristics of a multinational enterprise. Other strategies included a decentralised organisational system, and their technical and innovative capability.

Another example of a company that has been successful in creating disruptive technology is Apple. At around the same time that Nintendo was creating its place in the market, Sony came around with a series of portable music devices such as the “Walkman” and the portable CD player. Soon after, Apple introduced the Ipod which is more compact than either of Sony’s products. The Ipod also allowed for more

Sharp’s market entry to the electronics industry was through low cost assemble. However, Sharp soon realized that it could not complete in scale the well-established industry leaders such as Sony and Mutsuhito by playing catching up. Sharp’s decision to abandon this strategy of catching up in sales volume was a sound one, as well as its refocus where it thought it could win. Sharp also realized that the electronics assembly industry was a lost cost industry and margins were very minute. The only way to make money was to concentrate on cost efficiency. Ultimately, in order to be profitable, Sharp had to go for product differentiation strategy

Rivalry (high) – Leading TV brands including Sony and Samsung have strong presence in the market. They adopt vertical-integrated business model by investing in technology and manufacturing key TV components such as

Through fusion of the lighting technology and consumer electronics, the company has invented a TV that produces an ambient light when turned on and again. Moreover, the company has a flagship of television brand that doubles up as a mirror. These strategies have saved the company more money by simplifying

Royal Phillips Electronics drastically suffered from poor performance and as a result filed bankruptcy. Many couldn’t believe that they have filed bankruptcy based on great sales. They were very innovative with their products including the head shaver, compact cassette, and the CD. Despite, being Europe’s largest electronic company, Phillip’s profits were not up to par and sales were drastically declining. While the company was on a downward spiral, Gerald Kleisterlee took over as company President and made some adjustment and daring decisions that put the company on the forefront. The company went through a substantial restructuring that allowed for growth and an increase in profits within the company. The new President allowed for the company to revamp and allow for not only growth to occur but a shift in the mission and values of the organization. With the vast change in the company the business was simplified and made even smaller, which allowed for the top level executive to focus solely on the business and employees at hand. This in turn allowed for a substantial amount of strategic planning and implementation of new ideas that caused the company to reevaluate what caused sales to decrease in the first place, and allow for drastic change. Once Kleisterlee developed strong new innovative ideas, which would cause substantial change throughout the organization as a whole, the organization started to develop. The atmosphere and culture shifted, which in turn

Philips Healthcare is a Dutch technology company headquartered in Amsterdam with primary divisions focused in the areas of electronics, healthcare and lighting.It is one of the largest electronics companies in the world and employs around 105,000 people across more than 60 countries. It produces a series of medical device with

By the end of 2012, Samsung electronics become the largest producer of televisions and mobile phone. In order to achieve the success and the dramatic rise in consumer electronics sector, the company initiated new methods to innovate and create high quality products .

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

Executive summary: Matsushita Electronic Industrial (MEI) is a very successful company in both Japan and the global in the 1970s and 1980s. MEI 's success in this period came from its diversification of productions, dominance domestic market, unique corporate culture, and divisional structure in both domestic and international market. However, in 1987, under new circumstances, such as the change Yen prices, and the pressure of integration of information technologies that need international transfers, sharing, and synergies, MEI 's faced declines in sales and profits because its structure was exposed some weakness. To overcome these problems, MEI should choose Worldwide Product Division

The arrival of Gerald Kleisterlee in 2001 brought organizational changes to Philips that is evident in the marketplace today. The new CEO restructured the company by outsourcing mobile phone production to CEC of China and the production of VCRs to Funai in Japan. This was followed by the outsourcing of TVs, CD players and components with simultaneous movement of remaining in-house production to countries like China, Poland and Mexico, who had lower costs. He also sold off several businesses, including the core semi-conductor business. What evolved was Kleisterlee’s vision for a new Philips – a lifestyle company centered on health and well-being – which organized around healthcare, lighting and consumer lifestyle.

* From the beginning, Philips developed a tradition of caring for workers. Built company houses in Eindhoven along with bolstering education and paying employees very well (C85)

Philips has thrived on its technological prowess, which is a result of their strong focus on research and development. Specifically, Philips maintains a product-focused strategy and their highly decentralized National Organizations allow them to adapt to different market conditions globally. Human capital has historically been a key resource for the company, as they focused on caring for their workers and coordinating business efforts in a cross-functional environment (i.e. technical and marketing managers working on projects together), but frequent leadership turnover and seemingly endless turnaround efforts have weakened this valuable capability. It is arguable, however, that the cross-functional culture is still active at Philips and most of the top management team has completed foreign tours of duty.

Samsung is one of the world’s premium electronics manufactures. The estimated value of Samsung brand had risen from US$6.37 billion in 2001 to US$10.85 billion in 2003. A major factor behind this impressive growth had been Samsung’s effort to redefine itself as a vendor of cutting-edge, “gee-whiz” consumer technology. Samsung believed that repositioning the brand is a vital to the company’s future success.